The Canadian Bioceutical Corporation today announced it has completed preparatory construction work and commenced detailed planning for the full build-out of its cannabis cultivation facility in Owen Sound.
On January 7, 2015 the Company announced that its subsidiary, BioCannabis Products Ltd., had filed a Marijuana for Medical Purposes Regulations application with Health Canada. On August 23, 2017 the company was advised that its application was
at the Detailed Review and Initiation of Security Clearance Process stage and they anticipate being ready to commence cultivation in the latter half of 2018 for final inspection by Health Canada. No assurances can be given at this point on the timeframe for inspection and potential subsequent granting of Licensed Producer status.
"Commencing the full build-out of our Owen Sound facility is a very significant milestone in the execution of our Canadian strategy," stated Scott Boyes, CEO. "We have considerable cultivation experience through our operations in the U.S. and, through the use of innovative hydroponic rotary cultivation technology, we anticipate becoming a low-cost producer of high-quality products, including concentrates. Our go-to-market strategy is based on leveraging our award-winning concentrates brand MPX, which has proven highly successful in the U.S.
"In getting to this stage, we've received significant support from the local community in Owen Sound, including a letter of support from the MP for Bruce-Grey-Owen Sound, Larry Miller, as well as letters of support from Owen Sound's Fire Chief, Doug Barfoot; Chief of Police, William Sornberger; and Mayor Ian C. Boddy. We thank them for their patience and very meaningful support."
BioCannabis' basic building and utilities preparation for the initial 72,342 square foot of Phase I has been completed in the Owen Sound's industrial park. The building's first phase, upon approval of a pre-license inspection from Health Canada, will house in excess of 20 growing rooms, a drying area, trimming room, packaging area, a substantial vault, a laboratory, extraction and testing facility, a below-grade highly-secure shipping and receiving compound, as well as administrative offices and staff support areas. The building also allows for future expansion of up to an additional 402,658 square feet of grow space, for a total of 475,000 square feet.
Based on the design of its facility and use of innovative technology, the Company anticipates achieving a cultivation capacity of approximately 8,000 kg per year of high-quality flower, as well as over 300 kg per year of high-quality, high-margin concentrates produced from the trim from the Company's cultivation. Acquiring trim from third parties would increase the annual concentrates production.
The Company anticipates further construction to commence by early next year, with completion expected for summer 2018, in line with the anticipated commencement of adult use sales. Management projects construction costs through to completion to be in the range of $5-6 million.
