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.
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
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.”
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”.
- Cornerstone Builders Ltd
- Marijuana Facility confirms financing – 7 March 2018
- Update on Cobourg’s Marijuana Facility – 22 December 2017
- Cobourg Marijuana Update – 16 October 2017
Kraft/Certo Heritage Building
- Demolition Planned for Kraft Heritage Building – 10 September 2017
- ACO Looking at moving Certo Building – 2 October 17
- Certo Building Demolition on Hold – 18 October 2017