Delta 9 will use the new processing centre for fully automated bottling, packaging, capping and labelling of consumer-packaged dried cannabis products
Delta 9 Cannabis, a vertically-integrated cannabis company, has secured Health Canada approval to build a new cannabis processing centre.
The new processing centre will facilitate fully automated bottling, packaging, capping and labelling of Delta 9’s consumer-packaged dried cannabis products.
Delta 9’s new centre holds the capacity to process up to 25,000kg of dried cannabis flower material per year
Upon completion, the new processing centre is expected to process up to 25,000kg of dried cannabis flower material per year.
Delta 9 CEO John Arbuthnot said: “We have increased our licensed cannabis cultivation output significantly over the past two years to our current 8,325 kg/year capacity. This approval will allow us to streamline and automate our packaging and labelling activities and improve our ability to bring consumer packaged cannabis products to market more quickly.
“The excess capacity in the new production line will also allow us to source premium cannabis flower from other licensed producers, including the Company’s micro-cultivation partners, for sale through our wholesale and retail distribution network.”
At present, the firm is focused on the expansion of its Health Canada licensed cannabis production perimeter to include additional buildings at its licensed production facility in Winnipeg, Manitoba.
The expansion will allow increasing the total licenced square footage to around 135,000ft² from the 80,000ft² currently licenced by Health Canada.
Delta 9 also said that it has paused its earlier announced expansion plans and capital deployment for the remaining phase II areas of the Delta facility due to the outbreak of COVID-19 pandemic.
Arbuthnot further added: “Our goal is to ensure that our current licensed production assets are operating at design capacity and we achieve efficient sell through rates while continuing with our organic expansion strategy.”