There’s more buzz happening in the Canadian cannabis seed space with the announcement that Ontario’s Aphria Inc. has acquired Broken Coast Cannabis Inc., a major cannabis producer located in British Columbia.
Broken Coast adds award-winning premium production and a proven West Coast brand to Aphria‘s asset portfolio, affirming the Company’s market position ahead of a legal adult recreational use market in Canada, according to a news release. The transaction is expected to add incremental annual production of 10,500 kilograms, a portion of which is market ready today, elevating Aphria‘s forecast annual production to 230,000 kilograms while also providing Aphria with geographic diversification, a cross-Canada distribution platform, and access to over 40,000 medical patients.
The deal represents Aphria‘s second major investment into consumer- and brand-focused assets, in advance of the legalization of adult recreational use of cannabis expected in 2018.
Broken Coast has an extensive genetic library with over 1,000 seeds that can be commercialized, according to the companies. Leveraging Broken Coast’s genetics will enable the pro-forma company to bring unique, differentiated cannabis products to market.
“Broken Coast is committed to providing a premium and affordable product to its patient base while staying true to B.C.’s iconic cannabis brand and culture,” said Roberto Bresciani, director and co-founder of Broken Coast. “Joining the Aphria team will open doors to keep innovating with our unique production process and cannabis genetics. While we are joining a talented large-scale greenhouse operator, Broken Coast will retain a high level of independence and our existing management and production teams will continue to drive our corporate strategy and produce incredible cannabis products.”
Broken Coast operates a fully licensed, purpose-built, indoor cannabis production facility on Vancouver Island. Currently 26,000 sq. ft., the facility is undergoing an expansion that is near-complete and will bring total square footage to 44,000 sq. ft., capable of producing a cumulative 4,500 kilograms per year. The facility sits on a 4.5-acre parcel of owned land that has the necessary surrounding infrastructure to support further expansions, specifically Broken Coast’s planned Phase IV expansion to bring total capacity to 10,500 kilograms per year.
