Next Green Wave Holdings Inc. (OTCMKTS:NXGWF) has announced that it will go on with its expansion plans for a 50,000 sq. ft. premium indoor growing facility in Coalinga California.
Next Green Wave expanding the Coalinga facility
The cultivation facility (Facility B) will sit on 2 acres of the company’s land next to its 35,000 sq. ft. growing and distribution facility. Once Facility B becomes fully operational, Next Green Wave will have an annual production capacity of around 20,000 pounds of high-quality cannabis flower. This represents a 150% increase based on the company’s current production levels.
Most importantly, expansion of the facility has received approval from the city of Coalinga and Next Green Wave will work towards completing architectural and engineering designs by Q1 2021. Construction will commence in Q2 20221 with a Certificate of Occupancy expected in Q4 2021. Next Green Wave will finance the construction of the facility through its current cash flows and debt. For now, the company doesn’t expect that it will need dilutive equity financing to funds Facility B construction.
Michael Jennings, the company’s CEO said that the move to the next growth phase for the company is a huge milestone and proof of the momentum established in 2020. He said that the expansion will allow the company to leverage that momentum and increase its product footprint in California and solidify strategic partnerships in the wholesale market.
Next Green Wave surpasses $1.65 million in revenues
Recently, the company released financial and operational milestones. In November 2020 the company surpassed $1.65 million in revenues and reported an Adjusted EBITDA of $1 million. The company incurred $650,000 cash costs in November to generate the revenue. In the third quarter of 2020, the company exceed $1 million in revenue for each month and achieved positive Adjusted EBITDA.
Jennings indicated that throughout 2020, they demonstrated consistent profitability quarter over quarter as they transformed to high consumer products from bulk cannabis sellers. He said that the company launched the NGW brand with packaged flowers and now the company has branded products in all premium categories.