AmeriCann reveals plans to enter marijuana extraction, product manufacturing in Freetown

FREETOWN — Tim Keogh described the 52 acres he stood in front of on Wednesday as currently a dirt biker’s paradise.

Mounds of dirt and sand acted like small mountains to left of the CEO of AmeriCann, an agricultural-technology company. A small wood frame atop a concrete foundation acted as the only evidence of Keogh’s massive undertaking.

“That accounts for only 3 percent,” he said pointing to the foundation that by June will be a 30,000 square foot marijuana cultivation, processing and research facility.

This week, AmeriCann revealed designs for the second phase of its three-phase project, a 345,000 square foot facility broken down into two areas: about 245,000 square feet of greenhouse space and another 100,000 dedicated to extraction and processing of marijuana.

Americann will lease the space to two marijuana cultivators. The announcement also revealed AmeriCann will cross over into the industry in the Freetown Campanelli Business Park providing extraction and product manufacturing.

“Up until this point we’ve been taking the position that we’re an ancillary company,” Keogh said. “That we’re providing real estate and infrastructure and technology to the cannabis industry.”

The second building will consist of three units toward the front of the building. AmeriCann will occupy Unit B, a 40,000 square foot area, with a centralized large scale extraction and product manufacturing facilities, such as dividing or packaging the materials.

Extraction is the act of separating the components of the cannabis, a lot of times to an oil. Keogh said the oil could then be returned to the farmers or put it into a line of branded products.

Keogh said one centralized space streamlines the process and reduces the need for others within the building to operate those services. He said currently companies are filling vape cartridges 50 at a time. AmeriCann is looking at technology that will fill 2,500 in under an hour.

“We let the (companies) focus on growing and we’ll take care of large scale ... highly efficient extraction,” Keogh said.

Keogh said the services will be offered to those within the AmeriCann campus but also other local farmers.

A third building, measuring up to 600,000 square feet, is also in the plans, however, it’s much further down the road than the first two.

Keogh wants to provide a space for growers that is tailored to the industry. He said many businesses sprouting up around the state are shaping their businesses around already constructed buildings.

That can sometimes mean wasted space, but it also usually means the plants are grown indoors with lights.

AmeriCann offers greenhouses where the cannabis is grown under sunlight.

“When we started talking to the traditional horticulture guys it was like, yes, this makes total sense,” Keogh said.

Not only does the cannabis grow under natural sunlight, but the greenhouse also offers cost savings in terms of utilities, up to 70 percent less, Keogh said, compared to an indoor growing facility.

“You can only get so efficient in a warehouse grow,” Keogh said.

The second building should be operating in late 2019, Keogh said.