A press release today provided some more information on Cobourg’s Cannabis factory. The operating company is FV Pharma but it is getting $55M of finance from Auxly Cannabis Group – formerly called Cannabis Wheaton Income Corp. (they get paid by getting 49.9% of the output) – so it’s really a joint venture. FV Pharma still plans to be the “largest hydroponic indoor cannabis facility in the world” and in May they named Belleville based Cornerstone Builders Ltd as the construction contractor for the first phase. They still expect the “first phase of construction to be complete and ready for Health Canada approval by the end of December 2018”. But they also announced some changes: the facility will now include “a research and development lab focused on advancements in LED lighting, nutrient testing, breeding and genetics research. The first phase will also contain a dedicated space for large-scale extraction capabilities.”
Chuck Rifici, Chairman and CEO of Auxly said that “cultivating cannabis requires a significant amount of energy in order to ensure proper growing conditions and this is one of the main contributors to overall operations costs.” Translation: Cobourg’s LUSI needs to make sure they can supply a lot of electricity to them and FV Pharma needs to find ways to minimize consumption.
Therefore, Auxly has announced that FV Pharma 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 to the Company.” You can bet that LUSI is talking to them.
Thomas Fairfull, President and CEO of FV Pharma said: “We remain confident that FV Pharma’s joint venture with Auxly will be an industry-leading indoor producer of cannabis and we look forward to developing the various stages of this project as we enter into the era of legalization of recreational cannabis.” They have a licence for medical marijuana but with recreational pot now legalised starting October, they will no doubt need a new licence.
In a previous update, it was reported that FV Pharma will hire up to 200 people over the next 12 months. To be the biggest plant in the world would mean they will have to build on the vacant Kraft property land and no doubt the Hydro provisioning will have to be upgraded at some point.
- Cannabis Facility chooses Construction Contractor – 28 May 2018
- Press Release – Auxly Provides Development Update on the FV Pharma Joint Venture – July 3, 2018