MJardin has received the C$11 million payment from Peguis, which immediately allows the company to commence Phase 2 construction and expedite the path to full production of the Warman facility.
On Aug. 28, 2019, MJardin announced the signing of a non-binding LOI with Peguis concerning a joint venture (JV) in connection with the operation and ownership of its Warman cultivation facility. Under the terms of the agreement, Peguis (51%) will purchase existing land and buildings from MJardin (49%) for C$11 million and execute a concurrent long-term lease back to the JV. Peguis will additionally fund the capital expenditures required to complete Phase 2 of the facility for approximately C$20.5 million.
Design plans for the Warman facility were released last month and include a hybrid facility encompassing indoor and greenhouse production capacity, along with full EU GMP certified extraction, processing and packaging capabilities. Phase 2 of the build-out will see the facility reach production capacity of approximately 4,500 kg of high-quality dried flower and 800 litres of bulk oil for use in refined products by Q2 2020.