WeedMD Inc (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE), the medical-grade cannabis producer, is converting its 26,000-square-foot Aylmer, Ontario facility into a cannabis extraction and processing plant.

The fully licensed oil extraction facility is expected to be operational this summer with the capacity to process 200,000 kilograms of biomass per year. The company has processed oils at the Aylmer site since June 2017.

“WeedMD is optimizing its two licensed facilities to allow each to focus on a core vertical and to streamline our operations. We are transitioning the Aylmer site to produce a wide range of extracts and concentrates,” CEO Keith Merker said. “All cultivation has been consolidated to our greenhouse and outdoor Strathroy facility, which is delivering consistently improving yields at increasingly competitive costs.”

The Strathroy is expected to produce more than 150,000 kilograms of dried marijuana flower annually starting in 2020.

WeedMD is a Toronto-based licensed producer of cannabis for both the medical and adult-use markets. Its shares grew 2.3% to C$1.82 on the venture exchange and receded 0.6% to $US1.32 on OTC markets.