Cannabis Wheaton Income Corp. (TSXV:CBW) announced recently a joint venture to develop 1.4 million sq. ft. of greenhouse space in the Leamington area
SmallCapPower | February 21, 2018: Cannabis Wheaton Income Corp. (TSXV:CBW) announced Friday that it has inked a joint venture agreement with Peter Quiring via a newly-formed subsidiary “GreenhouseCo” to develop a purpose-built greenhouse for cannabis cultivation in Leamington, Ontario. One of Canada’s largest greenhouse builders and operators, Peter Quiring has developed ~2,000 acres of greenhouses and currently owns and operates 175 acres. Mr. Quiring will be acting as the Chief Executive Officer of GreenhouseCo.
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Cannabis giant Aphria Inc. (TSX:APH), which has its headquarters in Leamington, recently entered into a joint venture with vegetable grower Double Diamond Farms to expand its cannabis cultivation capacity in the Leamington area to 2.3-million square feet, which could potentially produce 220,000 kilos of cannabis annually by August 2018.
GreenhouseCo will initially develop 1.4 million sq. ft. of greenhouse space in Phase I, targeting annual production of 120,000 kgs of cannabis, with future expansion plans of up to 2.8 million sq ft. To be built on 102 acres of fully-owned land located in Leamington, Ontario by South Essex Fabricating, the facility will have access to 27 megawatts of electricity and a 100% closed-loop water recycling system. Cannabis Wheaton will assist GreenhouseCo in obtaining its ACMPR license for the cultivation and sale of cannabis through its Wheaton Licensing Program.
Hugo Alves, President and Director of Cannabis Wheaton, stated “This is a huge milestone for the Cannabis Wheaton story and we couldn’t be happier to pursue this venture by partnering with Peter. In getting to know Peter during this transaction it has become clear that he possesses exceptional greenhouse and operational knowledge and his track-record as one of North America’s most accomplished greenhouse builders and operators speaks for itself. We believe that our leading cannabis industry expertise and platform combined with Peter’s proven capabilities will be a recipe for success. This joint venture is another example of the quality of partners and breadth of production diversification that Cannabis Wheaton is building out for its upstream production platform. This is an exciting project both in terms of its scale and technological sophistication and we are honoured to be partnering with the best in the business to ensure that this facility becomes one of the largest and best run greenhouse cultivation facilities in the country.”
Since its inception, Cannabis Wheaton has developed its streaming platform by funding numerous cannabis facilities/partners across Canada in exchange for minority equity interests and portions of the cultivated production. In December 2017, the Company signed a joint venture with licensed producer partner FV Pharma Inc. to develop the world’s largest indoor cannabis facility spanning 3.8 million sq ft that would result in annual production of 400,000 kgs of cannabis, with Cannabis Wheaton’s share estimated at 200,000 kgs. The current JV with Peter Quiring to create one of the largest greenhouse production facilities further strengthens Cannabis Wheaton’s upstream production platform.
Following the announcement, shares of Cannabis Wheaton rose nearly 2% on Friday and another 6% Tuesday to close at $1.73. Cannabis Wheaton currently trades at a market cap of $607 million and price-to-book of 18.2x.
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