$UNVC: EuroMed is a ground floor opportunity. Literally. Working with the greenhouse engineering and construction experts at Eisenberg Agri Company (Israel) Limited, the company is laying down the foundation for a 100,000 square foot, modular-design greenhouse located 45 minutes outside of Jerusalem, with expectations for completion during the fourth quarter. Phase 1 of construction includes 22,000 square feet of operational greenhouse by the end of Q1 2020 with the cultivation process launched during Q2.
The state-of-the-art design of the greenhouse will allow for the addition of 11,000 square feet greenhouse every 30 days. Other benefits include the greenhouse being fully customizable to achieve the ideal micro-climate, which yields up to 20% higher output.
As for costs, start-up expenses are shaved in half compared to conventional greenhouses, after which operating costs are expected to be only about 5% of typical buildings.
Low Cost = Big Margin
Add these factors up and the sum is a premium cannabis product produced at approximately just $0.30 cents per gram. EuroMed says it will leverage domestic distribution agreements for Israel and that it also plans to export product to Europe, where retail prices range as high as $18 per gram. The company is already in discussions for off-take and joint venture distribution partners to further accelerate penetrating the European markets.
Management expects to harvest 5,500 kilograms of medicinal grade cannabis in the first 12 months of operations, which will translate to $22.0 million based on conservative pricing of $4 per gram.
,EuroMed isn't flying blind here. The lean, but highly seasoned team, which includes Dr. David Dalton former EVP of Rite Aid and current director of Pennsylvania-licensed cannabis producer and processor AGRiMED, as a director, has some good comps to base their projections upon. For instance, fellow Israeli cannabis company InterCure is able to produce 10,000 kilograms annually on their 54,450 square foot property.
The Israeli-benefit abounds on this front too when considering that Canadian greenhouse cannabis cultivator Tantalus Labs is able to produce only 10,000 kilograms annually from its 120,000 square foot facility.
Lab Too
The company also intends to have an extraction lab to cater to an extracts market expected to be worth $130 billion globally by 2029. There are many benefits to this type of vertical integration, including better yields by using every part of the plant and increasing shelf life without fear of loss of raw material. Canada is trying to iron out laws about edibles, as are other parts of the world, making this a market segment than cannot be overlooked, albeit for pharmaceuticals or an additive for an infused sports drink.
To keep developments moving along, EuroMed is looking to raise between $2.5 million and $5.0 million via subscription receipts, with the largest portion of the raise being earmarked for completion of the greenhouse, which will set the company on its way towards it domestic and international supply targets.
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The state-of-the-art design of the greenhouse will allow for the addition of 11,000 square feet greenhouse every 30 days. Other benefits include the greenhouse being fully customizable to achieve the ideal micro-climate, which yields up to 20% higher output.
As for costs, start-up expenses are shaved in half compared to conventional greenhouses, after which operating costs are expected to be only about 5% of typical buildings.
Low Cost = Big Margin
Add these factors up and the sum is a premium cannabis product produced at approximately just $0.30 cents per gram. EuroMed says it will leverage domestic distribution agreements for Israel and that it also plans to export product to Europe, where retail prices range as high as $18 per gram. The company is already in discussions for off-take and joint venture distribution partners to further accelerate penetrating the European markets.
Management expects to harvest 5,500 kilograms of medicinal grade cannabis in the first 12 months of operations, which will translate to $22.0 million based on conservative pricing of $4 per gram.
,EuroMed isn't flying blind here. The lean, but highly seasoned team, which includes Dr. David Dalton former EVP of Rite Aid and current director of Pennsylvania-licensed cannabis producer and processor AGRiMED, as a director, has some good comps to base their projections upon. For instance, fellow Israeli cannabis company InterCure is able to produce 10,000 kilograms annually on their 54,450 square foot property.
The Israeli-benefit abounds on this front too when considering that Canadian greenhouse cannabis cultivator Tantalus Labs is able to produce only 10,000 kilograms annually from its 120,000 square foot facility.
Lab Too
The company also intends to have an extraction lab to cater to an extracts market expected to be worth $130 billion globally by 2029. There are many benefits to this type of vertical integration, including better yields by using every part of the plant and increasing shelf life without fear of loss of raw material. Canada is trying to iron out laws about edibles, as are other parts of the world, making this a market segment than cannot be overlooked, albeit for pharmaceuticals or an additive for an infused sports drink.
To keep developments moving along, EuroMed is looking to raise between $2.5 million and $5.0 million via subscription receipts, with the largest portion of the raise being earmarked for completion of the greenhouse, which will set the company on its way towards it domestic and international supply targets.
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