Lexaria (CSE:LXX, StockForum), a Kelowna British Columbia-based recent entry to the emerging medical marijuana sector, announced today that the company had teamed with Enertopia (CSE:TOP, StockForum) to co-own and co-operate its first marijuana grow facility in Canada.
According to the news release, the companies' hold first right of refusal on expanding the aforementioned 30,000 sq ft facility by 45,000 sq ft and with 22 ft ceilings, facility could be further expanded with the addition of a second mezzanine.
Lexaria will control 49% of the facility through carrying 55% of all initial and ongoing expenses for the project while Enertopia will hold the remaining 51% by paying 45% of the costs.
The company is also committed to a one-time issuance of 500,000 common shares to Enertopia and wanted to note that there are no overriding interests payable to any entity.
Initially, the facility, to be co-managed by Enertopia and Lexaria, will be under a five-year lease with a 15-year renewal option. Interior architectural design will commence immediately while a construction firm has been selected to complete the build out.
The release went on to note that Don Shaxon will be made facility manager as the company prepares to submit its Health Canada license in compliance with MMPR requirements.
Lexaria warned investors that the facility is located in a Canadian municipality that has yet to approve medical marijuana production, but said approval is expected to arrive by June 2014. If no approval is given, both companies are able to exit the project without penalty.
Lexaria was in the news recently when the company converted $193,333 in debts a week ago.
Currently there are 18.6m outstanding shares with a market cap of $7.4 million.