VANCOUVER: TransCanna Holdings Inc. announced that with the recent state-wide final license approval, its wholly-owned subsidiary, Lyfted Farms Inc. has begun preparations for the commercial launch of distribution activities at its flagship 196,000 square foot Daly Avenue Facility in Modesto California.

The goal of Phase 1 is to focus on expansion and ramp-up of the companies’ distribution activities. The revised design of Phase 1 of the Daly Distribution build-out increases capacity by 16,000 square feet, allowing the Company to expand this core business unit to service escalating demand from customers.

“After many months of planning and preparation, our team is thrilled to begin operations inside of Daly,” said CEO Bob Blink. “We look forward to rewarding our investors’ patience with this initial phase and present the true potential we believe The Daly Building has to offer. As early as Q4 2020, we expect to see an incremental increase in revenue from Distribution activities in the vicinity of $6.0 million CDN per quarter. When combined with existing revenues, our target run-rate by our fiscal year-end should exceed previous projections and be in the neighborhood of $36 million CDN.”

Lyfted Farms has accepted a contract with Bay Alarm Company to install a state of the art, integrated security system in preparation for commercial activity at the Daly facility. Pre-site preparations are underway, and system completion is expected by August 15, 2020.

Additionally, the facility’s triple-redundancy heating, ventilation, and air conditioning “HVAC,” sub-forty-degree Fahrenheit freezer, and distribution area systems have been activated for precooling and calibration within the areas of operation. Employee technician training has started on the Company’s high speed automated packaging systems, combining WeighPack Swifty Baggers and Combiscale 14-head rotary scales to provide high-efficiency and precision filling, which reduce labor and material costs to industry-leading levels.

Packaging and support materials began arriving this week into the Daly distribution center with completion of the Phase 1 Distribution build-out expected by September 15, 2020.