AndyMan2 wrote: August 15th 2018
Amidst the anticipation of the official federal lifting of cannabis prohibition in Canada, the province of Quebec has quietly prepared itself to be the nation's marijuana leader, starting with provincial deals to provide 62 tonnes of pot to Quebec's legal recreational market.
Deals are being made between Quebec and the market's biggest growers both inside and outside of the province.
Among the companies serving and/or growing within Quebec's borders will be Aphria Inc. (TSX: APH) (OTC: APHQF), Aurora Cannabis Inc. (TSX: ACB) (OTC: ACBFF), Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF), The Hydropothecary Corporation (TSX.V: THCX) (OTC: HYYDF), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).
As Canada's second largest province, the Quebec marketplace will undoubtedly be a very valuable jurisdiction within which to sell, as well as grow-The Canadian market is expected to hit $22.6 billion.
Initially the province has tendered agreements with only 6 companies for the first year, however, it's fair to speculate that more will be added in the near future, including MYM Nutraceuticals whose project in Weedon, Quebec is set to become one of Canada's largest greenhouses, if not in the world.
Working with the municipality of Weedon, MYM and the city have ambitions to make Weedon 'Canada's Cannabis Capital'-and by erecting a 1.5 million-square-foot facility complete with a university and research facility on-site, can certainly bolster their case.
Quebec stands to be at the center of Canada's growing cannabis sector, especially with the work being done by Aphria Inc. (TSX: APH) (OTC: APHQF), Aurora Cannabis Inc. (TSX: ACB) (OTC: ACBFF), Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF), The Hydropothecary Corporation (TSX.V: THCX) (OTC: HYYDF), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF) in the years to come.
So far, only Hydropothecary and Aurora Cannabis are producing cannabis within Quebec. It's abundantly clear that the province wants more-MUCH more.
Enter the proposals of other up-and-comers, including MYM Nutraceuticals, which has plans for two facilities within the province, including the massive 1.5 million square feet of growing space planned for Weedon, Quebec.
MYM'S QUEBEC POWER PLAY
Up until recently, marijuana sector analysts tempered expectations on MYM's Weedon facility, on account of its massive scale, and the ability to see it through to fruition.
However, the company captured a significant milestone in March, when it announced it had received approval on the Weedon production facility, and commenced Phase One construction immediately.
"With the approved permits, architectural drawings and security plans already in place, MYM has commenced construction of the Weedon, QC project," said Rob Gietl, CEO of MYM. "This signifies a monumental milestone for MYM and our plans of building one of the largest greenhouses in the world. This project aligns with our goals of becoming a leading global cannabis producer."
The company is wasting no time, expecting Phase One of construction to be completed by the end of Q3, 2018. This first phase will involve building out 300,000 sq ft of greenhouse space for growing medical cannabis, as well as 20,000 sq ft for processing and manufacturing medical cannabis products. Once this phase is completed, the facility will be capable of producing 30,000 kgs annually.
The entire Weedon facility is scheduled for completion by the end of 2020, and it is estimated that the operation will be capable of producing 150,000 kgs of cannabis.
The company's decision to place their flagship operation in Quebec was very strategic-Nationally speaking, Quebec'scosts are quite reasonable.
The province's labor costs are on average 34% less than in the US, and 16% less than in G7 countries. Power is 36% cheaper than in the US, and 49% lower, on average, than in the G7 countries.
However, MYM over the last year has truly became an international player, embarking on a joint venture 1.2 million-square-foot cannabis facility in New South Wales, Australia, and a massive Latin American deal with leading Colombian medical cannabis company NEWCANNA.
MYM and NEWCANNA fully expect to upgrade this project's capacity through the use of technology similar to that used at Weedon. In total, lands agreed upon in the deal span 7,400 acres of cultivation property, upon which production is expected to surpass 1,000,000 kg of cannabis within the next two years.
Moving forward, MYM stands to benefit from Quebec's emergence as a central player in Canada's cannabis renaissance-and hopes to become one of the province's next major producers.
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