Verdant PhytoMed — Operations Plan

The Company’s primary cultivation and processing facility will be located in the Stellenbosch agricultural corridor, approximately 50 kilometres east of Cape Town. The Western Cape’s Mediterranean climate (warm dry summers, cool wet winters) is globally recognised as optimal for cannabis cultivation, delivering…

Verdant PhytoMed (Pty) Ltd Business PlanSection 6 › Operations Plan

Section 6 · Business Plan

Operations Plan

The Company’s primary cultivation and processing facility will be located in the Stellenbosch agricultural corridor, approximately 50 kilometres east of Cape Town. The Western Cape’s Mediterranean climate (warm dry summers, cool wet winters) is globally recognised as optimal for cannabis cultivation, delivering…

Cultivation Facility
Hybrid indoor + greenhouse

A controlled-environment, GACP/GMP-aligned facility designed for pharmaceutical-grade medicinal cannabis cultivation, processing and export.

6.1 Location — Stellenbosch, Western Cape

The Company’s primary cultivation and processing facility will be located in the Stellenbosch agricultural corridor, approximately 50 kilometres east of Cape Town. The Western Cape’s Mediterranean climate (warm dry summers, cool wet winters) is globally recognised as optimal for cannabis cultivation, delivering superior cannabinoid and terpene profiles compared to equatorial or tropical growing regions.

Strategic Location Benefits

  • Mediterranean microclimate with average temperatures of 15–28°C during growing season

  • Established agricultural infrastructure including irrigation networks, electricity, and road access

  • Proximity to Cape Town International Airport (45 min) and Cape Town Port (50 min) for efficient export logistics

  • Access to the Western Cape’s pharmaceutical ecosystem, including analytical laboratories and contract manufacturing organisations

  • Availability of skilled agricultural and pharmaceutical workforce from Stellenbosch University and surrounding communities

6.2 Cultivation Model

Verdant PhytoMed will operate a 5-hectare (expandable to 12 hectares) hybrid cultivation facility combining controlled-environment indoor propagation with semi-automated greenhouse flowering. This model optimises the balance between production costs and pharmaceutical-grade quality control.

Parameter Indoor Propagation Greenhouse Flowering
Purpose Genetic preservation, cloning Flowering, harvest
Area 500 m² (climate-controlled) 4.5 hectares (greenhouse)
Light Source LED supplemental Natural + supplemental
Climate Control Full HVAC Automated venting + heating
Cycles per Year Continuous 3–4 harvest cycles
GACP Compliant Yes Yes

6.3 Production Capacity Ramp-Up

Figure
Production Capacity — visualised from the accompanying data.
Metric Year 1 Year 2 Year 3 Year 4 Year 5
Cultivation Area (ha) 2.0 3.5 5.0 7.5 10.0
Harvest Cycles 2 3 3 4 4
Yield per ha (kg) 625 524 533 367 350
Total Production (kg) 2,500 5,500 8,000 11,000 14,000
Dried Flower (%) 60% 55% 50% 50% 45%
Extraction Feedstock (%) 40% 45% 50% 50% 55%

6.4 Processing & Manufacturing

The GMP-certified processing facility will include pharmaceutical-grade drying rooms with controlled temperature and humidity, trimming and sorting stations, supercritical CO2 extraction equipment, quality control and analytical laboratory (HPLC, GC-MS), packaging and labelling lines compliant with EU pharmaceutical standards, and cold storage for finished product prior to export.

6.5 Security Infrastructure

As a licensed producer of controlled substances, the Company is required to implement comprehensive security measures in accordance with SAHPRA and SAPS requirements. The security infrastructure investment of approximately ZAR 15 million includes a double-perimeter fencing system with anti-climb barriers, 24/7 CCTV surveillance with on-site and remote monitoring, biometric access control at all entry points, armed response services and on-site security personnel, a vault-grade storage facility for finished products, and integration with SAPS Central Monitoring systems.

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