Cannabis Facility Chooses Construction Contractor

As previously reported, private company FV Pharma has bought the old Kraft Factory and plans to use it to supply the Cannabis Market in Canada.  Initially the market is for medical purposes but legislation to allow recreational marijuana is working its way through the Senate and should be approved in the summer.  The main financing for FV Pharma is provided by public company Cannabis Wheaton Income Corp and on May 15 they announced an update on their “Joint Venture” with FV Pharma.  A builder has now been chosen and a schedule for construction announced.  They also make a point of thanking the “support received and active involvement of the local municipality of Cobourg”.  Help to ensure this building is used to provide employment is to be expected – no town wants a facility this large to go unused.

Financing 

Cannabis Wheaton Income Corp will supply ongoing financial, design and operational support and expertise and in exchange FV Pharma will provide them a 49.9% stream of all cannabis (or cannabis-derived products) produced at the facility.  There has been no announcement of the amount of money involved but phase 1 has been estimated to cost $35M.  A google search reveals that FV Pharma is also involved with production at other locations  – notably a partnership  with Cannara Biotech to operate a comparably sized facility in Quebec.

Construction and Schedule

Cornerstone Belleville Office
Cornerstone Belleville Office

FV Pharma chose Belleville based Cornerstone Builders Ltd. as the design builder.  The announcement says:

A specialist in commercial and industrial foodservice design-build projects, Cornerstone has decades of experience managing complex engineering and buildouts across North America. Notable large-scale design-build projects include the Sysco distribution warehouse in Woodstock and multiple buildouts for Home Hardware across Canada.

The Company expects to commence construction on the initial 200,000 square feet of cultivation and ancillary space within the next 30 days. The Company anticipates that the 200,000 square feet will be ready for segmented review by Health Canada by the end of December 2018.  As a result, pending regulatory approval, the Company expects to plant the first harvest of the new segment by the end of January 2019.

Statements by Management

Cannabis Wheaton would also like to highlight the support received and active involvement of the local municipality of Cobourg, Ontario as the Facility nears the beginning of construction.

….With the addition of Cornerstone as our design and building partner, and the ongoing support of the Town of Cobourg, we remain convinced that the FV Pharma facility will be a truly differentiated indoor growing facility.

….we are very pleased with the progress the project has made over the previous few months.

Thomas Fairfull, President and CEO of FV Pharma commented, “We are delighted with the progress of the facility, not to mention the fact that it remains on schedule and on budget. This goes to highlight the strength and value of the partnership with Cannabis Wheaton, in addition to their ability to execute within the parameters of the original agreement and timeframe. We look forward to working with them as this project moves into the advanced stages of construction and ultimately into the production of cannabis.”

Employment

Other reports have said that about 200 people will be hired over the next 12 months.  Northumberland News reported that 10 had been hired as of March 16 and another 50-60 people would be hired over the next four or five months. Another report said that 2000 applications were received for these jobs.

This is the company that wanted to demolish a building on their property that was falling into complete ruin but when it was designated “Heritage”, said OK – we’ll do whatever it takes.  Why not? This would be minor compared to a $35M budget!  See links below for the background on this.

Stay tuned for more on this facility – as many have said, it gives new meaning to Cobourg’s slogan “The Feel Good Town”.

Links

Kraft/Certo Heritage Building

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Wally Keeler

“I can see additional policemen having to be hired in Cobourg to police the backyard pot scene. Jeez!”

It will be like the good ole days of reefer madmess. The Peterborough detachment of the RCMP spent hours and nights ensconced on the second floor of the Federal Building overlooking Victoria Park observing the local hippie scene for dopers. There were so many busts one year that a special court day was set aside to handle all the cases. I made a small fortune reporting on the court cases. Here is a compendium of Cobourg attitudes towards pot in 1968. http://cobourgtown.blogspot.com/2008/09/what-should-society-do-about-pot.html

Walter L. Luedtke

So far the closest stores will be in Kingston and Toronto, according to the Ontario Cannabis Store (OCS) website.
Also, a Senate committee passed 40 amendments Monday to Bill C-45, including one that would allow provinces and territories to ban homegrown marijuana.
Will be interesting to see whether Ontario will ban homegrown marijuana.
I can see additional policemen having to be hired in Cobourg to police the backyard pot scene.
Jeez!

Old Sailor

I heard that the nearest weed retail outlet will be in Peterborough. They are interviewing for positions there. Wonder if they will have a sampling room like the breweries used to have?

Wally Keeler

The nearest is in Alderville.

Ewok

Nearest legal distributor will be Peterborough – once legalization takes place Alderville’s 4 current illegal shops will most probably be shuttered. They might be able to negotiate keeping one..

Deborah OConnor

John it was the previous owner who wanted to demolish it. When FV Pharma bought it they knew about the Heritage designation and were willing to do the restoration work. Your own earlier post proves it!

“The request for a demolition came from Sidney Spiegel, President of 520 William Inc. The demolition and removal of the building would be at his cost and would certainly resolve the “order to remedy” issued by the Town. At the regular Council meeting on September 25, Council referred the matter to the Heritage Advisory committee as recommended by Alison”. It’s from your post titled “Demolition planned for Kraft Heritage building”.