Kelowna, British Columbia–(Newsfile Corp. – September 23, 2019) – Citation Development Corp. (CSE: CGRO) (OTCQX: CGOTF) (“Citation” or the “Corporation“), a licensed cannabis cultivator and producer, is pleased to report on its substantial operational ramp up considering that finishing the merger with ACC Group of Firms (the “Merger“).
Considering the fact that the Merger with ACC on August two, 2019, the Corporation made an added 89,250 grams of flower in August, of which 39,916 grams have been sold to dispensaries for US$139,706 at an typical cost of US$three.50 per gram. Furthermore, ACC’s inventory was sold to the Company’s wholly owned subsidiary, Marapharm Las Vegas LLC (“Marapharm“), for US$366,832 which will be additional processed into cannabis oils at the Company’s Eco Nevada production facility. The Corporation expects to produce an added 30% from the sale of these Cannabis extracts. For the months of July and August, Marapharm generated gross income of about US$220,500 from the sale of Cannabis flower. The Company’s dispensary in California, Green Leaf Wellness LLC, recorded gross income of about US$231,000 for July and August and gross margin of about 23%.
At Pahrump 1, Citation has now brought the facility to up to 67% of its total prospective output of 275,000 grams per month. The Corporation expects to see 100% output out of the facility by the initially quarter of 2020 just before it starts its expansion in Pahrump with its Pahrump two and Pahrump three facilities. As previously announced, upon complete develop out, the Company’s Pahrump operations will have a total output of six,000 kilograms per year across 50,000 square feet of develop. As previously disclosed, Pahrump 1 is a 26,500 square foot facility. Pahrump two and three represent an added 15,000 square feet and eight,500 square feet, respectively. Citation also has an LOI on fourth Pahrump facility adjacent to its existing footprint which will add an added 12,500 square feet. The Corporation also has added area to develop out an added 225,000 square feet of premium indoor cultivation on its 100% owned Pahrump land holdings.
In August, Citation is pleased to report that its branded merchandise such as Blunt Box, Garden of Weeden, Superior, and FIORE are now getting sold in 42 dispensaries in Nevada representing a 70% penetration of the Nevada industry. The Corporation expects to see continued development of its branded merchandise by way of its expanding sales channels.
In Nevada, the Corporation is also optimizing its delivery/distribution business enterprise as it appears to continue its worth-primarily based strategy in this area.
The management group is at present reviewing several possibilities for non-dilutive financing from numerous sources, and would welcome any other funds to supply proposals to finance the develop out of Pahrump two, three and four to much more than double our existing cultivation footprint.
Management is also at present evaluating all of its assets to decide which core assets to concentrate on and which to divest in order to make use of capital in the most productive way probable to make shareholder worth in the shortest timeframe.
Update on Celista, Chase and Lynden Assets
The Corporation is pleased to report that it is in the final stages of Overall health Canada approval for its Celista asset. The Corporation is at present in the course of action of constructing the initially two of ten buildings, totaling 100,000 square feet of cultivation and processing space at this project.
The Corporation has decided to commence to divest its non-core assets in Lynden and Magna Bay as it additional focuses on its US, money flowing assets. The Corporation plans on finishing this asset divestiture plan by the finish of 2019.
For added details on Howard, the group and the projects that Citation is at present building please take a look at our web page and view our presentation at http://citationgrowth.com/.
About Citation Development Corp.
Citation Development Corp. is a publicly traded corporation that has been investing in the healthcare and recreational cannabis space considering that 2014. Citation has quickly expanded its operating portfolio to incorporate cultivation, production, and dispensary areas in essential North American state-legal jurisdictions and is in search of expansion possibilities worldwide.
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