Canopy Rivers's 49%-owned joint venture, PharmHouse, has received a cultivation licence from Health Canada. PharmHouse will be immediately commencing operations in 190,000 sq. ft. of licensed nursery infrastructure and plans to ramp up the entire 1.3 million sq. ft. ultramodern greenhouse before the end of 2019 to deliver low-cost and high-quality cannabis and cannabis derivative products to the Canopy Rivers ecosystem of partners, both domestically and internationally.
“This is a significant corporate milestone for Canopy Rivers. We believe the PharmHouse platform to be the epitome of value creation for our shareholders, and exposure to this project represents an investment opportunity only available through Canopy Rivers,” said Narbe Alexandrian, President and CEO of Canopy Rivers. “Together with the expertise of agriculture industry titan Paul Mastronardi, along with our team of ag-specialist joint venture partners, Canopy Rivers has helped finance, construct, and prepare for licence one of the largest, state-of-the-art cannabis facilities in the world, and has already backed it with multi-year contracts with internationally-focused industry leaders that we expect will translate into significant cash flow and profitability,” continued Alexandrian.
Founded by Canopy Rivers and the principals and operators of North American agriculture and produce conglomerate Mastronardi Produce Limited, PharmHouse is a newly-built 1.3 million sq. ft facility located in Leamington, Ontario. Its approach to production integrates a high degree of automation, lean manufacturing processes, and commercial agricultural best practices. The result is a large-scale greenhouse operationally optimized for commercial-scale, low-cost cannabis production that is designed to comply with Good Manufacturing Practices. Through the Joint Venture Partners, PharmHouse has access to plant science, automation, and logistical expertise that has been developed over multiple generations.
PharmHouse has already entered into commercial offtake agreements for a combined 50% of its 2020 production with Canopy Growth and TerrAscend.
“This licence is a monumental achievement for PharmHouse, a joint venture that I believe represents the future of cannabis production, distribution, and technological innovation,” said Paul Mastronardi, CEO of Mastronardi Produce Limited and, in his personal capacity, the largest individual shareholder in the PharmHouse joint venture. “We look forward to continuing to lend our proven operational, marketing, and distribution expertise to PharmHouse, and collaborating with Canopy Rivers to continue building our planned global cannabis platform.”
“Our focus on capacity, innovation, and speed to market has been a competitive advantage of PharmHouse since our company’s inception just over a year ago,” said Tony Abbas, General Manager of PharmHouse. “With the project fully funded and licence now in hand, our strong and focused team intends to continue our rapid progress and ramp up towards full operations in the coming months. We believe that we are well on our way to establishing PharmHouse as a premier large-scale, low-cost, cannabis production and global distribution platform,” continued Abbas.