Item 9 Labs Corp. Breaks Ground on $13.5M Cultivation Expansion

Rhea-AI Summary

Item 9 Labs Corp. (OTCQX: INLB) has commenced its master site expansion in Coolidge, Arizona, breaking ground on a $13.5 million project to enhance its cultivation and lab facilities. The company is expanding from its current 19,200 sq. ft. to over 640,000 sq. ft., marking a 3,100% increase in operational space. Expected completion of phase one is Summer 2022, which aims to boost flower output by 30-35% and reduce reliance on third-party material by 40-50%. The expansion is projected to create over 200 jobs.

Positive

• Expansion to 640,000+ sq. ft. represents a 3,100% increase in operational space.
• Expected boost in flower output by 30-35%.
• Anticipated job creation of over 200 positions.

Negative

• None.

COOLIDGE, Ariz., Nov. 16, 2021 /PRNewswire/ -- Item 9 Labs Corp. (OTCQX: INLB) (the "Company")—a vertically integrated cannabis dispensary franchisor and operator that produces premium, award-winning products—announced today that the Company has broken ground on the master site expansion of its Coolidge, Arizona cultivation & lab site.

Item 9 Labs Corp. has been cultivating, manufacturing, and processing Item 9 Labs products—the Company's elevated mainstream cannabis brand—since 2017 from its existing 19,200 sq. ft. facility, which sits on five acres. As part of the master site expansion, the Company recently acquired the neighboring 45 acres and anticipates increasing its operations space to 640,000+ square feet; a 3,100% increase from its current operations. At 50 acres, the site is one of the largest properties in Arizona that is zoned to grow and cultivate flower.

The initial development phase is estimated to be completed in Summer 2022 and includes the construction of three steel buildings and two greenhouses – adding 9,600 sq. ft. for indoor cultivation, 9,600 sq. ft. of lab and packaging and a 9,600 sq. ft. head house to support the addition of the two 18,000 sq. ft. greenhouses.

"With phase one of our expansion, we expect to increase output of our high-quality flower by 30-35%," says Cory Carter, vice president of cultivation of Item 9 Labs Corp. "Our greenhouses will reduce reliance on third-party sourced material for lab productions by 40-50%."

Item 9 Labs Corp. expects to complete the master site development in the next few years. All told, the site will consist of:

-  Eight steel buildings, all under 10,000 sq. ft. each – one building will be dedicated to lab expansion and house finished product, while the other seven buildings will be used for indoor cultivation;
-  16 18,000 sq. ft greenhouses or greenhouse support buildings;
-  Six 9,600 sq. ft headhouses; and
-  Five acres of outdoor cultivation.

Andrew Bowden, CEO of Item 9 Labs Corp., says, "During this first phase of expansion, we anticipate hiring another 60 to 70 team members across cultivation, processing and packaging positions, with a goal of creating more than 200 jobs by the conclusion of our master site development."

More Information on Item 9 Labs Corp.: 
Visit https://investors.item9labscorp.com

Expansion of the existing lab allows for the addition of more state-of-the-art equipment for all extraction processes. Having equipment that allows different extraction processes is important for product diversification.

The Company's Lab Manager Eric Eisele says, "Each extraction process has its own pros and cons. Extraction material can give you different end products depending on strain, freshness, cure, and trim versus fresh frozen full flowers. The end goal of each process is to offer a highly potent end product. Our new facility will ensure we're set up for each result wanted."

Nick Bowden, vice president of construction and real estate for Item 9 Labs Corp., is leading development on the expansion. Scottsdale-based Alexander Building Company is the contractor and Tempe-based Upward Architects are the architects.

"Building one of Arizona's largest cultivation sites is a milestone for us," Alexander Building Company's President Shane Alexander said. "Their team shares our same forward-thinking, sustainable mindset when it comes to development. It's entrepreneurial companies like Item 9 Labs that excite us."

In celebration of the groundbreaking, Item 9 Labs Corp. is expanding its annual holiday food and toy drive for the Society of St. Vincent de Paul of Arizona with a donation of $5,000 – signifying the expansion across its 50-acre site.

Click here for more photos to accompany any news stories.

About Item 9 Labs 
Item 9 Labs cultivates the highest quality cannabis products while providing transparency, consistency and well-being for an enhanced cannabis experience. With more than 20 podium finishes in Arizona marijuana competitions, Item 9 Labs is a trusted source for premium cannabis products. Starting with intentionally grown flower, the Item 9 Labs product catalogue spans 75-plus active cannabis strains and more than 150 differentiated cannabis vape products as well as premium concentrates and Apollo & Orion vape technologies. Currently, Item 9 Labs is the most in demand brand at more than 60% of Arizona's dispensaries, according to LeafLink. For additional information, visit item9labs.com.

About Item 9 Labs Corp. 
Item 9 Labs Corp. (OTCQX: INLB) is a vertically integrated cannabis operator and dispensary franchisor delivering premium products from its large-scale cultivation and production facilities in the United States. The award-winning Item 9 Labs brand specializes in best-in-class products and user experience across several cannabis categories. The company also offers a unique dispensary franchise model through the national Unity Rd. retail brand. Easing barriers to entry, the franchise provides an opportunity for both new and existing dispensary owners to leverage the knowledge, resources, and ongoing support needed to thrive in their state compliantly and successfully. Item 9 Labs brings the best industry practices to markets nationwide through distinctive retail experience, cultivation capabilities, and product innovation. The veteran management team combines a diverse skill set with deep experience in the cannabis sector, franchising, and the capital markets to lead a new generation of public cannabis companies that provide transparency, consistency, and well-being. Headquartered in Arizona, the company is currently expanding its operations space up to 640,000+ square feet on its 50-acre site, one of the largest properties in Arizona zoned to grow and cultivate flower. For additional information, visit item9labscorp.com.

Media Contact: 
Lisa Sass
Serendipit Consulting
lsass@serendipitconsulting.com   
909-519-9171

Investor Contact:
Item 9 Labs Corp.
investors@item9labs.com
800-403-1140

 

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SOURCE Item 9 Labs Corp.

FAQ

What is Item 9 Labs Corp. doing in Arizona?

Item 9 Labs Corp. is breaking ground on a $13.5 million cultivation expansion in Coolidge, Arizona.

How much will Item 9 Labs expand its operational space?

Item 9 Labs will expand its operational space from 19,200 sq. ft. to over 640,000 sq. ft.

When is the expected completion date for the first phase of expansion?

The initial development phase is estimated to be completed in Summer 2022.

What percentage increase in flower output is Item 9 Labs expecting?

Item 9 Labs expects a 30-35% increase in flower output.

How many jobs is Item 9 Labs planning to create with its expansion?

The company plans to create over 200 jobs with its expansion.