Benzinga | Apr 20, 2021 06:11PM EDT

Australis Capital, Copperstate Farms Ink $6M Deal To Modernize, Expand Cannabis Cultivation Operations In Arizona

Copperstate Farms, Arizona's largest cannabis wholesaler, is rapidly expanding its facilities to meet customer demand. This week, the company signed a deal worth up to $6 million with ALPS, a subsidiary of Australis Capital Inc (OTC:AUSAF), to significantly upgrade its existing operations and support the development of new greenhouses.

ALPS will implement a full technology and workflow upgrade at Copperstate's existing facility, providing industrial greenhouse management solutions, enhanced cultivation practices, compliance upgrades and computerized maintenance management services.

This is expected to increase yield and enhance product quality, enabling Copperstate to continue to meet the rapidly growing demand in the Arizona market.

ALPS will also provide engineering support for the construction of a GMP-compliant processing and manufacturing facility in Tempe. In phase 2 of the project, Copperstate intends to utilize ALPS for the design, construction management and (post) commissioning services in relation to the planned expansion of its greenhouse facility by an additional 40 acres.

"As a result of legalizing adult-use and expediting its roll-out, producers in Arizona need to expand existing production capacity and also establish new operations," Australis CEO Terry Booth told Benzinga. "The new regulations clearly make Arizona one of the front runners in the Western United States where it relates to cannabis industry growth. We are proud of our relationship with Copperstate Farms, one of the pre-eminent U.S. cannabis operators, and are excited to be part of their growth to meet consumer demand."

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