FV Pharma Inc., the new owner of the Kraft property who plans to build the “the largest indoor cannabis cultivation facility in the world”, now has financial backing from Cannabis Wheaton Income Corp. This is a group of “entrepreneurs with a passion for the cannabis industry — past, present and future”. They provide financial support and share their collective industry experience. Wheaton has announced they have signed a letter of intent and although they will get “a 49.9% stream of all cannabis”, they did not announce how much money was involved. The agreement is subject to “FV Pharma receiving the necessary licenses”. Also announced were some additional details.
Details of Project
- Existing building is 620,000 square feet
- Upon completion of the Facility Development, FV expects to achieve a total of approximately 3,800,000 square feet dedicated to cannabis cultivation and related ancillary businesses all under one roof making it the largest indoor cannabis cultivation facility in the world.
- Wheaton and FV plan to utilize the Facility to supply Canada’s current medical and future recreational market for cannabis with a vision to offer mass quantities of dried cannabis, cannabis oils and, when legally permitted, food-grade cannabis edibles.
- Cannabis Wheaton estimates that this will result in approximately 200,000,000 grams of cannabis per annum for their benefit upon completion of all phases of the Facility Development.
- Cannabis Wheaton’s management team will assist FV Pharma with all aspects of the design, development, financing, build-out and operations of the Facility as well as the marketing, branding and distribution of the cannabis and cannabis-derived products generated by the Facility.
- Chuck Rifici, Chairman and Chief Executive Officer of Wheaton Income, compared the Cobourg facility to the Hershey factory in Smiths Falls where he converted it to marijuana production when he worked for Tweed (now Canopy Growth). However, he said that the Cobourg project is on a much larger scale and in perhaps the most ideal location in Canada, in close proximity to the largest addressable market in the country.
- Chuck went on to say that: “When completed, this massive facility will not only create a tremendous amount of supply for the recreational Canadian market, but it will also create hundreds of jobs for the City of Coburg (sic) similar to what we accomplished in Smiths Falls.”
- Thomas Fairfull, President and CEO of FV Pharma said he chose to partner with Cannabis Wheaton because of their experience in converting a large-scale food grade facility into a cannabis cultivation facility.
- FV Pharma said that their management mission “is to make the former Kraft plant in Cobourg, Ontario the largest hydroponic cannabis indoor facility in the world. FV Pharma intends to target all aspects of the cannabis industry including cultivation, processing, manufacturing, R&D, concentrates, beverages and edibles when and only when it is legal to do so.”
There was no update on the time-frame.
To put the number of grams of pot in perspective, once recreational marijuana is legal, the retail price of marijuana in Canada is expected to be around $10 a gram. A google search suggests it’s currently a little less than that.