MYM Nutraceuticals (MYM.C) (“MYM”) dropped the needle on some mammoth news today when the company announced that it had signed an exclusive deal with the Municipality of Weedon, Quebec to construct a 1.5 million-square-foot cannabis grow facility.
According to the news release, the facility will consist of fifteen 100,000-square-foot greenhouses and once built/licensed, it would be one of the biggest grow ops on the planet, potentially producing over 150,000 kg annually.
MYM broke ground with this deal as it partnered with the municipality on building the facility. Weedon has agreed to purchase the 329 acres of land for MYM to construct the facility on.
The deal was signed by MYM subsidiary, CannaCanada, a Montreal-based cannabis company which MYM controls 75% off.
After the project is finished, MYM will have upped its ownership of CannaCanada to 90%.
The municipality of Weedon has found the land, signed an option to purchase it and based on reaching certain requirements, Weedon will pull the trigger on the purchase and donate the land to the project.
Preliminary construction designs have been approved for the initial portion of the facility, and detailed plans for the 100,000 square-foot greenhouse and 20,000 square-foot warehouse are being drawn up by MYM’s architects, Latimer Hu.
The company has also enlisted the skills and experience of Factotum Consultants to manage the ACMPR application process. MYM expects the application will be submitted to Health Canada this Friday.
MYM CEO, Rob Gietl, commented, “This is an important and significant deal for MYM and its shareholders. 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 managing and funding the project and will pay $75,000 and issue 250K of common shares to CannaCanada or its principals, with a further 250,000 shares six months later. Once the application reaches pre-license inspection, MYM will issue CannaCanada or its principals an additional 500,000 common shares.
Once the application has been approved by Health Canada and a license has been granted, MYM will hand over a further 1.0 million common shares and another 1.0 million shares a year later.
As a result of reaching these milestones, MYM will increase its ownership of the project from 75% to 85% when the license is granted and then to 90% one year later. MYM will also pay a 10% finders fee, in common shares, to the person who brought the deal to management’s attention.
Yann Lafleur, President of CannaCanada, commented, “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. and 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.”
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