WeedMD takes next step in evolution with launch of cannabis-extraction subsidiary, CX Industries

WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) announced Tuesday it has launched CX Industries Inc, a wholly-owned subsidiary that will specialize in extraction, toll processing and third-party product formulation.

In a statement, the company said CX Industries will have the capacity to process more than 200,000 kilograms of biomass at its peak production in 2020 from WeedMD’s facility in Aylmer, Ontario.

“The launch of CX Industries represents the next step in the evolution of WeedMD,” said CEO Keith Merker. “The marriage of consistent low-cost input material from our cultivation platform with our fully-licensed extraction hub in Aylmer truly sets us apart.” 

Part of that evolution, he added, is “to provide a platform for entrepreneurs and seasoned brands to enter the concentrates market.”

READ: WeedMD becomes first licensed producer in Shoppers Drug Mart’s new pilot program to authenticate medical cannabis

In addition to its 26,000 square foot extraction and processing facility in Aylmer – where it is also headquartered – the company owns and operates a 158-acre state-of-the-art greenhouse and outdoor facility located in Strathroy, Ontario.

WeedMD said it currently has 136,000 square feet of licensed indoor and greenhouse production space and is expected to have a total footprint of more than 550,000 square feet of indoor and greenhouse production online in 2019.

Additionally, 27 acres of outdoor cultivation is licensed and fully operational with the first harvest expected in October 2019.

WeedMD has a multi-channeled distribution strategy that includes selling directly to medical patients, strategic relationships across the seniors’ market and supply agreements with Shoppers Drug Mart as well as six provincial distribution agencies where WeedMD’s adult-use brand, Color Cannabis is sold.

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Story by ProactiveInvestors