C21 Investments (CSE: CXXI) this morning announced expansion plans for its Nevada cultivation facility, with the company looking to add 40,000 square feet of cultivation space to its operation. The company currently anticipates that the expansion will be completed in the second half of 2021.
The expansion will see what amounts to a reported 200% increase in canopy space, with the expansion bringing utilization at the current facility to a total of 60%. The 100,000 square foot facility is not entirely built out, leaving room for further expansion as market demands dictate.
In terms of capacity, an additional 7,500 pounds of dried flower and 3,000 pounds of trim and biomass are expected to be grown annually at the facility once completed.
The expansion is said to be possible due to the “recently announced debt restructure and debenture backstop,” with the company stating that margins should rise as a result of the expansion. The increased capacity is said to be used to support further in-house products, while enabling wholesale activities as well. Funding for the expansion is somehow to come internally, at a stated cost of US$6.0 million. Completion is presently pegged for the second half of next year subject to building permit approvals.
C21 Investments last traded at $1.27 on the CSE.
Information for this analysis was found via Sedar and C21 Investments. The author has no securities or affiliations related to the discussed organizations. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
