According to a recent announcement, MYM Nutraceuticals Inc., (CSE: MYM) (OTC:MYMMF) revealed that it has signed an exclusive deal with the Municipality of Weedon, Québec to build a 1.5 million-square-foot cannabis production facility consisting of fifteen 100,000-square-foot greenhouses. Once the entire project is completed and licensed, it would be one of the largest grow operations in the world, with the potential to produce over 150,000 kilograms of cannabis per year or $750,000,000 annually.
This is a first of its kind partnership where a municipality has partnered with a cannabis company to build a major production facility. The agreement is unique as Weedon will purchase the 329 acres of land for MYM to build the project on.
The Weedon agreement was signed by a subsidiary of MYM, CannaCanada Inc., a Montréal-based cannabis company that MYM purchased 75% of. By the completion of the project, MYM will own 90% of CannaCanada Inc. CannaCanada's strong ties with Weedon city officials allowed MYM to also obtain full exclusivity regarding the future development of any cannabis or hemp-growing facilities within the municipality.
The municipality of Weedon, which is approximately two hours east of Montréal, is actively involved in the project. Weedon has already identified the land on which the facility will be built and has signed an option to purchase it. Subject to certain requirements, Weedon will exercise that option and then donate the land to the project.
MYM anticipates that the project will advance quickly as Weedon's planning department has already approved the preliminary construction designs for the initial portion of the facility. Detailed plans for the first 100,000-sq-ft greenhouse and a 20,000-sq-ft warehouse are now being drawn up by the MYM's architects, Latimer Hu. MYM has engaged Factotum Consultants, who have successfully obtained two Licensed Producer licenses for other clients, to manage the ACMPR application process and expects to submit its application to Health Canada this Friday.
"This is a important and significant deal for MYM and its shareholders," said Rob Gietl, MYM's CEO. "The sheer scope and exclusivity of this project will bring MYM global attention and propel the company into its next stage of growth. We have all of the architects, engineers, and consultants in place, and with the full support of the municipality of Weedon, we are moving ahead at an accelerated pace."
MYM has committed to manage and fund the project and will pay $75,000 and issue 250,000 common shares to CannaCanada or its principals, with a further 250,000 shares six months later. When the project's ACMPR application reaches pre-license inspection stage, MYM will issue CannaCanada or its principals an additional 500,000 shares. If the application is approved by Health Canada and a license is granted, MYM will issue a further 1,000,000 shares, and another 1,000,000 shares one year later. In exchange for these milestones, MYM's ownership of the project will grow from 75% initially, to 85% when the license is granted, then to 90% one year later. MYM will also pay a 10% finder's fee, in common shares, to the person who brought the deal to management's attention.
Yann Lafleur, the President of CannaCanada Inc. commented, "Cannabis is a heritage and culture that we must reclaim, protect and explore as Louis Hebert apothecary established when he was the first to plant a successful Cannabis crop in Canada in 1606 before the founding of the country. We have made it our responsibility and mission to educate our communities and enrich people's lives with cannabis."
"CannaCanada's bond with the municipality of Weedon, Quebec will create sustainability that will reflect on the entire industry of cannabis leading to incredible future projects involving many other aspects of the industry. MYM Nutraceuticals will supply us with the necessary resources and tools in order to establish this deed and transmit this heritage."
"Creating an alliance with MYM Nutraceuticals enables our enterprise to expand into the U.S. & European territories in order to spread this wealth of information and experience for generations to come. MYM Nutraceuticals and their entire team will be a divine asset to establishing a patrimony of cannabis in this country. Our joined network of leading cannabis experts will pave the way to the continuity of results, remaining leaders in this new industry."
For more information please contact:
MYM Nutraceuticals Inc. http://www.mymarijuana.ca
Investor Relations:
Terry Brown
+1-855-696 2261
[email protected]
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