Affinity Energy Gets Approval For Facility Of Cannabis Cultivation

  • Dec 04, 2018 AEDT
  • Team Kalkine
Affinity Energy Gets Approval For Facility Of Cannabis Cultivation

On December 4, 2018, Affinity Energy and Health Limited (ASX: AEB) came forward and published the press release which contained information related to the approval which has been given to the company in regard to the Cannabis cultivation facility. As per the press release, the company got the approval to come up with the manufacturing as well as a medical cannabis cultivation facility in Malta. The Letter of Intent was given to the Malta Enterprise at the time of September quarter. This approval to the company can be treated as the big win for the company as not all companies get the approval. However, as per the press release, Aurora Cannabis Inc., which happens to be a company in Canada, had also been given the letter of intent by the Malta Enterprise.

According to the letter of intent, Affinity Energy and Health Limited would be given the industrial land. This land will be provided by the Malta Industrial Parks Limited so that the company can carry out its activities. The facility which has been selected by Affinity Energy and Health Limited would be established in such a way that it complies with the GMP standards of the European Union or EU. The company has also provided additional information about the facility. As per the press release, Affinity Energy and Health Limited has plans to enhance the facility in the time span of three years. The company would be enhancing from 15 units to 175 units.

Affinity Energy and Health Limited would be directly deploying €200,000 or A$310,000. This investment would be made by the company in a subsidiary (100%) which is incorporated in Malta. However, €3,400,000 would be deployed further in the company in the time frame of three years so that the production levels which have been mentioned above can be achieved. As far as the initial funding with respect to phase 1 construction is concerned, it would be done by the cash reserves as well as from the facilities available. However, when it comes to the expansions, the financing would be done by the cash flows.

On December 4, 2018, the stock price of the company closed the session on the very strong note. The stock price of Affinity Energy and Health Limited closed the day at A$0.016 per share which implies a rise of A$0.001 per share or 6.667% on the intraday basis.

The market capitalization of Affinity Energy and Health Limited stood at circa $14.33 million, and the stock price of the company is trading towards the lower range. Looking at the stock performance, in the past three months, the company has managed to deliver the return of 7.14%.


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