Joint venture cannabis project planned in B.C.
Oct. 11, 2017, Smiths Falls, Ont. – British Columbia will soon be home to a 1.3-million-square-foot greenhouse cannabis operation.
Canopy Growth Corporation has entered into a definitive joint venture agreement to form a new company, BC Tweed Joint Venture Inc. together with a large-scale greenhouse operator to develop 1.3 million sq. ft. of greenhouse growing capacity in British Columbia with an exclusive option to develop a further 1.7 million sq. ft. of existing greenhouse infrastructure at a second B.C. location.
Applications have been submitted for both sites. Subject to Health Canada and other standard regulatory approvals, as well as a bit of luck, the company is hopeful that it will have product available from the joint venture as soon as July 1, 2018.
Under the terms of the agreement and subject to third-party approvals required by the partner, the joint venture has conditionally agreed to lease a 1.3 million sq. ft. (30-acre) greenhouse facility located on a 55-acre parcel of land from an affiliate of the partner, with an option to acquire the property.
CANOPY IS GROWING FROM COAST TO COAST
The joint venture significantly supplements the company’s industry leading production portfolio and positions Canopy Growth with production and distribution facilities from coast to coast.
“The joint venture allows us to expand our operational footprint for greenhouse production while increasing our institutional knowledge of operating large scale greenhouses,” said Bruce Linton, chairman and CEO, Canopy Growth.
“Our cannabis expertise already operating the largest cannabis greenhouse in the sector combined with experience of our new partner’s extensive large-scale greenhouse production record, is great news for our customers and investors.”
Following the expansion announcement at the company’s existing Tweed Farms Inc. greenhouse facility in Niagara-on-the-Lake, Ont., this joint venture will increase the total pro-forma greenhouse production footprint at Canopy Growth operation to approximately 2.3 million sq. ft., with an exclusive option to bring that footprint to four million sq. ft.
The company has also announced indoor capacity expansion plans that will bring its total indoor production capacity to approximately 900,000 sq. ft.
PARTNER HAS MULTI-GENERATIONAL KNOWLEDGE OF GREENHOUSE OPERATIONS
The BC Tweed joint venture partner brings multi-generational knowledge of greenhouse operations and efficiencies having managed and operated over 5.8 million square feet of greenhouse infrastructure in various climates throughout North America over the past 30 years.
The partner is an experienced large scale, low cost, hydroponic greenhouse operator, with industry leading food safety, traceability and compliance expertise and a deep focus on sustainable production practices and efficiencies. The partner brings tier one assets and an operations team with over 200 years of combined growing experience.
This Joint Venture represents the sixth province with Canopy Growth operations.
The company is committed to building an international business with a strong national platform while supporting the local communities where it operates through job creation, meaningful stakeholder engagement, and local economic opportunity, highlighted most recently with the donation of over 3300 pounds of food and household goods across its sites to benefit local food banks in the lead up to Thanksgiving.