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Alliance One to expand cannabis subsidiary

23 May 2018. Alliance One is set to expand operations at its wholly-owned indirect Canadian cannabis subsidiary, Canada’s Island Garden, by increasing production capacities for both legal recreational, and medicinal cannabis, the tobacco leaf merchant said in a press release.

The company said a two-phase “state-of-the-art” expansion will see it invest USD 27 million (EUR 23 million) in growing the cannabis operation, which is based on Canadian Prince Edward Island.

Phase one will see a 166,000-square-foot greenhouse facility and a 54,000-square-foot warehouse built. Alliance One said the warehouse facility will accommodate phase two of the expansion, which will include an additional 90,000 square feet of greenhouse space.

The company said phase one of the expansion, which it expects to have completed by spring 2019, will increase annual production capacity at Canada’s Island Garden from 1,200 kg to 18,000 kg. The completion of phase two, for which no completion date was given, would increase this capacity beyond 35,000 kg, the company said.