Cannabis Wheaton Income (TSXV:CBW) provided shareholders with an update on the development of the project for its streaming partner FV Pharma.
As quoted in the press release:
The FV Pharma facility (the “Facility”) is located in Cobourg, Ontario and hosts an existing 620,000 square feet of building space. Since signing a definitive agreement (the “Agreement“) the Company and FV Pharma have been eagerly advancing the design, construction budget and timeline for the development of the Facility.
Pursuant to the Agreement, the Company will develop and finance all aspects of FV Pharma’s Facility in mutually agreed phases of construction and arrange for the build-out, commissioning and operations. The Company will receive a 49.9% stream of all cannabis (or cannabis-derived products including any immature cannabis plants and any cannabis trim) produced at the Facility, under partnership with Cannabis Wheaton, in perpetuity.
The Company has determined that the first phase development of the Facility will be a retrofit of the existing building to construct approximately 100,000 square feet of cultivation and ancillary space (“Phase I”). The Company and FV Pharma are actively working to finalize the funding and timing associated with the development of Phase I which is estimated to cost approximately $35,000,000. It is anticipated that Phase I will be fully completed and licensed within 18 months.