Mr. Chuck Rifici reports
CANNABIS WHEATON INCOME CORP. ANNOUNCES NEW JOINT VENTURE WITH PETER QUIRING - ONE OF CANADA'S LARGEST GREENHOUSE BUILDERS AND OPERATORS TO DEVELOP 1.4 MILLION SQUARE FOOT PURPOSE BUILT GREENHOUSE FOR CANNABIS CULTIVATION
Cannabis Wheaton Income Corp. (doing business as Wheaton Income) has entered into a joint venture with Peter Quiring, one of Canada's largest greenhouse builders and operators, via a newly formed subsidiary (GreenhouseCo), to develop, construct and operate a state-of-the-art purpose-built greenhouse for cannabis cultivation in Leamington, Ont., with Mr. Quiring acting as chief executive officer of GreenhouseCo.
As the founder and owner of four vertically integrated companies, all of which have greatly influenced the North American greenhouse ecosystem, Mr. Quiring has over 25 years of experience designing, fabricating, building and operating greenhouses across North America. He has developed over 2,000 acres of greenhouses and currently owns and operates 175 acres of computer-controlled, state-of-the-art greenhouses with over 600 employees in Southern Ontario. Operating one of the largest bell pepper and tomato greenhouses in North America, he is currently growing over 15 million kilograms of peppers and 25 million kilograms of tomatoes each year that are shipped across Canada and the United States. In addition, his fabrication company South Essex Fabricating constructed the Double Diamond Farms facility which is currently being converted for cannabis cultivation.
Pursuant to the transaction, GreenhouseCo initially plans to develop 1.4 million square feet of greenhouse (phase I) on 102 acres of fully owned land located in Leamington, Ont. The facility will be constructed by South Essex Fabricating and will be built on a fully serviced site with access to approximately 27 megawatts of electricity. The facility will be purpose-built with state-of-the-art automation and operate under a 100-per-cent closed-loop water recycling system.
The company estimates that the phase I buildout will result in approximately 120 million grams of cannabis per annum and believes there is further potential to increase the facility's output with additional technological improvements that will be adapted from Mr. Quiring's existing greenhouses. GreenhouseCo also has the ability for additional expansion up to a total of 2.8 million square feet of greenhouse cultivation. The company will assist GreenhouseCo in obtaining its ACMPR (Access to Cannabis for Medical Purposes Regulations) licence for the cultivation and sale of cannabis through its Wheaton licensing program by providing GreenhouseCo with all of the resources and expertise necessary to achieve the licence.
Mr. Quiring and the company have also agreed to jointly pursue international cannabis-related greenhouse cultivation opportunities for joint development and opportunities to license GreenhouseCo's intellectual property relating to facility design and operation know-how.
Hugo Alves, president and director of Cannabis Wheaton, stated: "This is a huge milestone for the Cannabis Wheaton story and we couldn't be happier to pursue this venture by partnering with Peter. In getting to know Peter during this transaction it has become clear that he possesses exceptional greenhouse and operational knowledge and his track record as one of North America's most accomplished greenhouse builders and operators speaks for itself. We believe that our leading cannabis industry expertise and platform combined with Peter's proven capabilities will be a recipe for success. This joint venture is another example of the quality of partners and breadth of production diversification that Cannabis Wheaton is building out for its upstream production platform. This is an exciting project both in terms of its scale and technological sophistication and we are honoured to be partnering with the best in the business to ensure that this facility becomes one of the largest and best run greenhouse cultivation facilities in the country."
Peter Quiring, founder and president of NatureFresh and South Essex, commented: "Over the past 25 years I have had the pleasure of building four integrated companies, including NatureFresh Farms and South Essex Fabricating. These four companies have been founded on driving innovation and utilizing new technology, but I have learned that empowering people and building strong relationships is the most valuable part of being a leader. Today, I am pleased to announce my new exciting joint venture with Cannabis Wheaton and have full confidence in the management and teams that we have built together within my existing companies. I know that these teams will continue to perform beyond my expectations and serve our community and customers with the same exceptional quality. I look forward to bringing my experience and values to this new partnership with Chuck, Hugo and their team at Cannabis Wheaton."
The transaction remains subject to certain conditions precedent including receipt of applicable regulatory approvals and the execution of a definitive agreement which the parties expect to occur within 60 days.
About Cannabis Wheaton Income Corp.
Wheaton Income is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. The company's mandate is to facilitate growth for its partners by providing them with financial support and sharing its collective industry experience. Its partners all have different visions, voices and brand values, and all share a common goal -- to build a world-class industry based on ethics, diversity, quality and innovation.
We seek Safe Harbor.
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