I had a chance recently to visit SNNVF’s development at Okanagan Falls. I hope this picture gives you a
sense of the size of the project that covers 126 acres in total. I was passing by on a Sunday so there wasn’t
any work going on but there is enough equipment on the site to start a small construction company.
The greenhouse is scheduled to be completed by early 2019 as work can continue all year and the first crop
is expected in the second quarter of next year. Certhon Projects will supply the greenhouse superstructure,
electrical, irrigation systems, lighting, heating, cooling and C02 systems, EllisDon is the general contractor
and manager, MQN is the architect consultant and Urban Systems are the civil and landscape engineers.
These are world class vendors engaged to ensure this project is completed on time, on budget.
This is a great location, it’s a geographical desert with lots of sun light and all the necessary amenities are
available. I am told there has been a very positive impact on the local community as well because the expected
construction costs are over $100 million and the projected number of new jobs will virtually replace
the ones lost a decade ago. The property was originally a Weyerhaeuser forest products facility and its closure
with the loss of around 225 jobs had a depressing effect on the local community.
It may be hard to see in the picture but on the left you can see the foundations are being put in for the 740,000
square foot greenhouse. Management told me as recently as at the Annual Meeting they expect to announce
the construction financing shortly and it will be a combination of mezzanine and chartered bank financing.
After the property is in operation, the entire project will be refinanced on more attractive terms.
I’d also like to extend a special thanks to Jim Cumming, Senior Investment Advisor with Canaccord Genuity
Wealth Management who took time to show me around. Jim is a very important source of cannabis investment
information and ideas to me and the Let’s Toke Business letter and heads up Cumming Investment Strategies.
Jim splits his time between his hometown of Penticton and the Vancouver Canaccord office.
I continue to favor SNNVF and any news on the U.S. rescheduling of cannabis is likely to have an explosive
impact on the share price.