- Canada’s “green rush” cannabis market challenges have revealed the importance of securing product pipeline
- Icon Exploration’s pending reverse takeover of LP applicant City View Green positions it to acquire 40,000-square-foot cultivation facility
- City View Green also holds option on additional 125,000 square feet of farm and extraction space for its planned edibles, distillates and water-soluble brands
As investors and consumers alike assess the gains and losses evident during the “green rush” of 2018, when companies such as Icon Exploration Inc. (TSX.V: IEX.H) launched aggressive efforts to capitalize on changing laws and attitudes regarding cannabis, their attention is turning toward companies that can deliver revenues by ensuring a steady product pipeline (http://cnw.fm/BTL8x). Icon Exploration’s efforts to create a well-diversified company focused on becoming a leading purveyor of medicinal and recreational cannabis is evidence that the company’s industry-experienced team is preparing to meet that demand.
Icon Exploration is building its portfolio with a reverse takeover of private company City View Green, an applicant for Canada’s licensed producer designation that expects to complete a 40,000-square-foot cultivation facility near Toronto for pharmaceutical-grade cannabis once the government green lights the application. Another 4.3 acres at the location is being held for possible exponential upscaling with an additional 125,000 square feet of farm and extraction facilities.
City View Green intends to use the space for cultivating its cannabis and then producing high-quality edible products, distillates and water-soluble brands for the cannabidiol (CBD)-infused beverage market, a rising sector within the industry as consumers continue to explore non-smoking ways of benefiting from cannabis’ properties.
“We’re now realizing that it isn’t only about crop yield. Over the long term, it’s about lowering production costs and developing efficient extraction and processing methodologies,” CEO Rob Fia stated in an interview with Postmedia Content Works last year (http://cnw.fm/0TqwP). “It’s also about developing consumer products focused on the retail market, because the higher margins and potential will be there, not in flower. We’re particularly strong on beverages and cosmetics derived from cannabis, infused with either CBD or THC (tetrahydrocannabinol).”
In a new show of faith in Icon Exploration’s potential, Fia updated the company’s August early warning report to note that he has recently been issued 312,500 additional common shares of Icon at a price of $0.15 per share pursuant to the exercise of share purchase warrants (http://cnw.fm/Kb05d).
The update states that Fia now has ownership and control of more than 4.6 million shares of Icon. Despite the increase in the number of his shares in the company, the report states that dilution since August 2017 has decreased his overall ownership interest from about 16.1 percent to approximately 13.9 percent of Icon’s present outstanding shares, on a non-diluted basis. On a partially diluted basis in which the exercise of all 1.3 million-plus stock options held by Fia is assumed, he would have ownership and control over about 17.3 percent of the then-issued Icon shares.
City View Green expects to employ contractors and use about half of the planned Ontario facility’s space for growing product with state-of-the-art LED lighting, HVAC systems and automation technologies designed to ensure cannabis product consistency and quality. About 4,000 square feet will be devoted to an extraction laboratory outfitted for an ultra-efficient CO2 supercritical extraction process.
City View Green is also working with other companies in the cannabis sector to establish agreements for the supply of its products once the operation gets final approval from the government.
For more information, visit the company’s website at www.IconExploration.net
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