FSD Pharma to expand indoor cannabis grow with $55M funding partnership
FSD Pharma's facility in Cobourg, Ont., has the potential for 3.8 million square feet of cultivation and processing area FSD Pharma
The first phase of the build-out of the FV Pharma facility in Cobourg, Ont., has been approved in an updated construction and development budget provided by Auxly Cannabis Group, according to a statement from FSD Pharma, which owns FV Pharma.
Of the current 620,000 square feet of building space available, 220,000 square feet will be developed and fully funded. As part of this project, Auxly will contribute $55 million to build out the facility.
The 220,000 square feet of cultivation and ancillary space will include a research and development lab focused on advancements in LED lighting, nutrient testing, breeding and genetics research, the company said. The first phase will also contain a dedicated space for large-scale extraction capabilities. FSD Pharma expects first phase construction to be completed and ready for Health Canada approval by the end of December 2018. Pending regulatory approval, the company expects to plant the first harvest in the first phase by the end of January 2019. FSD retains a 50.1 per cent stream (after all operating expenses are recovered plus a ten per cent profit is paid to FSD) of all cannabis and cannabis- derived products produced at the facility, under partnership with Auxly, in perpetuity.
As part of the updated construction budget, the facility will implement several technological advancements in order to increase energy efficiency and post-harvest process automation. These advancements are anticipated to benefit the environment and the community of Cobourg through less demand on the local electricity grid and will reduce operating expenses for the company, FSD Pharma said.
"We are pleased to be working in partnership with Auxly to build out our facility in Cobourg. The first phase of our expansion plans sets the foundation for the continued development of a potential 3.8 million square feet at the former Kraft plant. We have taken a significant step forward in delivering low-cost, high-quality pharmaceutical grade cannabis at scale, and to achieving our company mission to build the largest hydroponic indoor cannabis facility in the world," Thomas Fairfull, president and CEO of FSD Pharma, said in a statement.
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