Producer and distributor of cannabis products WeedMD has received a licence amendment from Health Canada (HC) to include a processing area featuring semi-automated packaging lines at its facility in Aylmer, Ontario.

The company has installed a processing room and packaging lines. It is currently performing final testing and calibration.

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The new lines will be fully operational early in the third quarter of this year.

WeedMD CEO Keith Merker said: “The integration of automation into our packaging systems is a significant production milestone for WeedMD. We expect this automation to increase our speed to market and drive costs lower.

“This will ensure our finished products get to market competitively and efficiently with an expected positive impact on WeedMD’s margins beginning over the second half of this year.”

According to the company, the combined annual production capacity of the 26,000ft2 Aylmer facility and the Strathroy facility in Ontario is expected to be more than 150,000kg by 2020.

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The Aylmer location is an indoor production facility, while the Strathroy location is a greenhouse and outdoor facility.

WeedMD sells its products directly to medical patients through a multi-channelled distribution strategy, strategic relationships across the seniors’ market and supply agreements with Shoppers Drug Mart and six other provincial distribution agencies.

Last month, the cannabis company appointed Nichola Thompson as the role chief financial officer.

The company also announced plans to open corporate offices in downtown Toronto, and London, Ontario, in spring this year in a bid to expand its commercial footprint.