Auxly Signs Joint Venture Agreement for New Ontario Facility
Auxly Cannabis Group (TSXV:XLY) announced a definitive joint venture agreement with greenhouse builders and operators for the construction of a new facility in Leamington, Ontario.
As quoted in the press release:
Auxly Cannabis Group is pleased to announce that further to its previously announced transaction on February 16, 2018, the Company has entered into a definitive joint venture agreement with Peter Quiring, one of Canada’s largest greenhouse builders and operators, via a newly formed subsidiary (the “JVCo“), to develop, construct and operate a fully-automated, state-of-the-art, purpose-built greenhouse for cannabis cultivation in Leamington, Ontario (the “Facility“).
Pursuant to the agreement, Mr. Quiring, through South Essex Fabricating, will be responsible for the design, construction and operation of the Facility, and the Company will be responsible for funding the project and assisting JVCo in obtaining its ACMPR license for the cultivation and sale of cannabis (the “License”) by providing JVCo with all of the resources and expertise necessary to achieve the License. The Company expects to finance the multiple phases of construction of the Facility with cash on hand and alternative sources of non-dilutive financing, where available.
The Facility will be designed as a hybrid greenhouse with a supplemental indoor facility to optimize operational efficiencies. The initial phase of the project has been designed with a footprint of 1,400,000 square feet (“Phase I”) while additional phases of the project contemplate an expansion of up to a total of 2,800,000 square feet. JVCo has acquired 100 acres of land for the development of the Facility which is fully powered with sufficient electricity for Phase I and the future expansions.
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