LISTEN IN: Aphria Inks Deal To Become One of the Largest Greenhouse Cannabis Operations In The World
Aphria has secured a deal with a local greenhouse grower to grow its capacity to what could be the biggest greenhouse cannabis operation in the world.
It has purchased a greenhouse, newly built by Double Diamond Farms, that will provide an additional 120,000 kgs of cannabis production.
It will speed up Aphria's capacity by over a year.
"It is a huge retrofit cost but we save 12-18 months of getting across the finish line because this is already a completed greenhouse campus and not a crop has been dropped in there," says Aphria CEO Vic Neufeld.
The deal is valued at between $80-million and $100-million.
Along with the company's existing production of 100,000 kgs, it is believed Aphria will have the largest fully funded production capabilities next year in about 1.3-million sq.ft. of space.
Aphria expects all 220,000 kgs of expected annual cannabis production will be available for sale in January 2019, depending on approvals by Health Canada.
Neufeld admits this is a huge deal.
"As far as we know, this is going to be the biggest greenhouse cannabis operation in the world," says Neufeld. "Between our million square feet at 265 Talbot St. and the Double Diamond acquisition, we will have 2.3-million feet of greenhouse."
Based on research, Neufeld expects demand will grow.
"They are fully expecting a huge demand coming from an underground consumer to above ground, once they have secured the sites for the 40 and up to 150 retail outlets across the province."
Double Diamond will supply land, the greenhouse, existing infrastructure and employees. Aphria will supply its oversite, Standard Operating Procedures and apply for a second Health Canada cultivation license for the site.
The 100-acre site is located on Highway 77.
Aphria CEO Vic Neufeld explains the reasons behind the purchase of a Double Diamond Farms greenhouse