22 JAN 2019

Launching one of the largest and most efficient cannabis facilities on the planet.

It was almost three years ago when Derek Ivany became the president and CEO of AgraFlora Organics and laid out a business plan to become one of the top cannabis producers in Canada. He recognized the immediate opportunity for medical cannabis and the long-term opportunity for the legalization of the substance in Canada.

The process to be granted a medical cannabis cultivation license was challenging and took some time, but shortly after the Canada government legalized cannabis for recreational purposes in 2018, AgraFlora became an official licensed producer – a significant accomplishment for the management team and the Company.

During the application process, the Company was very busy scouring Canada and the rest of the globe for potential opportunities in the cannabis space to create value for shareholders and to meet the goal becoming a top producer. This led to opportunities like Cannvas MedTech (CSE: MTEC) and Natures Hemp - two companies created by spinning out certain assets from AgraFlora to establish separate operating entities.

The search for opportunities and partnerships also led to a fateful meeting with Casey Houweling of the Houwelings Group. Almost immediately both parties recognized the absolute potential of combining the science of large-scale growing expertise of the Houwelings Group, with the cannabis and capital market knowledge and experience of AgraFlora, to ultimately form the joint venture company Propagation Services Canada.

Propagation Services Canada brings together the experience and know-how to convert and operate an existing 2,200,000 square foot tomato greenhouse complex in Delta, BC into a large-scale cannabis cultivation operation.

When complete the Delta Greenhouse Complex will be one of the most efficient greenhouses in the country with advanced technology operating HVAC, water and lighting, its own natural gas co-gen energy plant and a prime location in Delta, BC.

The Houwelings Group has been growing tomatoes in large-scale greenhouses for decades and with over 200 employees they are very excited to team up with AgraFlora to produce high-quality cannabis.

We are working aggressively to prepare the first of three phases of the greenhouse for 250,000 square feet of cannabis flowering and propagation plants expected in the summer of 2019. The conversion is expected to be completed in 2020 and with 2.1 million square feet of growing space will have an annual capacity of approximately 250,000 kilograms of cannabis.

Looking into the future you can expect AgraFlora Organics to continue to create shareholder value through the completion and operation of the Delta Greenhouse Complex and continuing the search for additional opportunities on a domestic and international basis.