You can almost feel the electricity coming from Canada as the country approaches a watershed moment to become the first industrialized nation to initiate legal online sales of adult-use marijuana on October 17.
Companies are jockeying for position to capture share in what is expected to be a lucrative and rapidly-growing market, including FV Pharma, a unit of FSD Pharma (OTCPK:FSDDF)(CSE:HUGE), which on Tuesday morning announced completing the harvest of its first lot of cannabis and the successful passing of microbial testing required by Health Canada for sales licensing under Access to Cannabis for Medical Purposes Regulations (ACMPR).
Amongst other things under the ACMPR, marijuana products must not be treated with any additives or any pest control products outside of the 20 specifically defined by the Pest Control Products Act.
From its headquarters about an hour northeast of Toronto in Cobourg, Ontario, FV Pharma, a licensed producer under the ACMPR, is looking to transform a former Kraft food production plant into the biggest hydroponic indoor cannabis facility in the world.
Situated on 70 acres, 40 acres are prime for facility expansion up to 3.9 million square feet of grow space. FV Pharma is currently producing five strains of cannabis from 25,000 square feet, with another 220,000 square feet under development to grow pharmaceutical-grade cannabis. Completion of the addition is expected this December.
Streaming company Cannabis Wheaton (TSX-V:CBW) is providing ongoing financial, design and operational support and expertise in return for a 49.9% stream of all cannabis produced at the facility in perpetuity.
The company is planning to harvest a second lot this week for full analytical testing, which will allow FV Pharma to request a pre-sales license inspection from Health Canada. This represents the last step in getting full sales approval from the health authority to sell into both the medical and recreational cannabis markets.
FSD Pharma CEO Thomas Fairfull called the first lot testing and important milestone for his company as it expedites the growth of its business.
Farifull founded the company after experiencing a positive therapeutic benefit from medical marijuana for managing his Type 2 diabetes after negative side effects, including suicidal thoughts, from prescription medication.
U.S.-listed shares of FSD Pharma, which just became public in June, closed ahead 10% on Monday at 11 cents. CSE-listed shares rose 3.7% to 14 cents on Monday.
