MYM to build 1.5M sq ft pot-growing facility in Quebec
2017-06-20 09:29 ET - News Release
Mr. Rob Gietl reports
MYM NUTRACEUTICALS TO BUILD ONE OF WORLD'S LARGEST GREENHOUSE (1.5 MILLION SQUARE FEET) CANNABIS GROWING FACILITIES IN WEEDON, QUEBEC
MYM Nutraceuticals Inc. has signed an exclusive deal with the Municipality of Weedon, Que., to build a 1.5-million-square-foot cannabis production facility consisting of 15 100,000-square-foot greenhouses. Once the entire project is completed and licensed, it would be one of the largest grow operations in the world, with the potential to produce over 150,000 kilograms of cannabis per year, or $750-million annually.
This is a first-of-its-kind partnership where a municipality has partnered with a cannabis company to build a major production facility. The agreement is unique as Weedon will purchase the 329 acres of land for MYM to build the project on. The Weedon agreement was signed by a subsidiary of MYM, CannaCanada Inc., a Montreal-based cannabis company that MYM purchased 75 per cent of. By the completion of the project, MYM will own 90 per cent of CannaCanada. CannaCanada's strong ties with Weedon city officials allowed MYM to also obtain full exclusivity regarding the future development of any cannabis- or hemp-growing facilities within the municipality.
The municipality of Weedon, which is approximately two hours east of Montreal, is actively involved in the project. Weedon has already identified the land on which the facility will be built and has signed an option to purchase it. Subject to certain requirements, Weedon will exercise that option and then donate the land to the project. MYM anticipates that the project will advance quickly as Weedon's planning department has already approved the preliminary construction designs for the initial portion of the facility. Detailed plans for the first 100,000-square-foot greenhouse and a 20,000-square-foot warehouse are now being drawn up by the MYM's architect, Latimer Hu. MYM has engaged Factotum Consultants, which has successfully obtained two licensed producer licences for other clients, to manage the access to cannabis for medical purposes regulations (ACMPR) application process and expects to submit its application to Health Canada this Friday.
"This is an important and significant deal for MYM and its shareholders," said Rob Gietl, MYM's chief executive officer. "The sheer scope and exclusivity of this project will bring MYM global attention and propel the company into its next stage of growth. We have all of the architects, engineers and consultants in place, and, with the full support of the municipality of Weedon, we are moving ahead at an accelerated pace." MYM has committed to manage and finance the project, and will pay $75,000 and issue 250,000 common shares to CannaCanada or its principals, with a further 250,000 shares six months later. When the project's ACMPR application reaches prelicence inspection stage, MYM will issue CannaCanada or its principals an additional 500,000 shares.
When the application is approved by Health Canada and a licence is granted, MYM will issue a further one million shares and another one million shares one year later. In exchange for these milestones, MYM's ownership of the project will grow from 75 per cent initially to 85 per cent when the licence is granted, then to 90 per cent one year later. MYM will also pay a 10-per-cent finder's fee, in common shares, to the person who brought the deal to management's attention. Yann Lafleur, the president of CannaCanada, commented: "CannaCanada's bond with the municipality of Weedon, Que., will create sustainability that will reflect on the entire industry of cannabis leading to incredible future projects involving many other aspects of the industry. MYM Nutraceuticals will supply us with the necessary resources and tools in order to establish this deed and transmit this heritage.
"Creating an alliance with MYM Nutraceuticals enables our enterprise to expand into the U.S. and European territories in order to spread this wealth of information and experience for generations to come. MYM Nutraceuticals and their entire team will be a divine asset to establishing a patrimony of cannabis in this country. Our joined network of leading cannabis experts will pave the way to the continuity of results, remaining leaders in this new industry."
About MYM Nutraceuticals Inc.
MYM Nutraceuticals is an innovative company focused on acquiring Health Canada licences to produce and sell high-end organic medicinal cannabis supplements and topical products. To ensure a strong presence and growth potential within the industry, MYM is actively looking to acquire complementary businesses and assets in the technology, nutraceuticals and cannabidiol sectors.
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