Fort Erie cannabis company sells for $40 million
Just days after a ribbon-cutting ceremony to celebrate its grand opening, a medical marijuana company in Fort Erie has been purchased by a major player in the burgeoning weed market.
CannaCure had a long road to reality in Fort Erie, first applying for municipal permission in 2014 to allow it to convert the old Jarvis Street Pharmetics building into a marijuana operation. The company obtained the permit to grow marijuana in late 2017 and conducted renovations through much of 2018 that involved converting the facility to the tight standards set for marijuana companies.
The $5-million renovation of the 10,980-square-metre facility also required the installation of a massive, concrete-reinforced vault with vibration detection sensors between the doublebarrier walls. The vault is capable of storing about $150 million worth of marijuana.
CannaCure has retrofit about 2,160 square metres of the facility, and can expand the operation when needed.
“CannaCure has developed a truly impressive, state-of-the-art facility that will be capable of many great things once fully operational,” said Jim Thibert, general manager of Fort Erie Economic Development and Tourism Corp.
Over the past four years, the EDTC helped CannaCure navigate regulations and standards set out by Health Canada.
“This unique addition to our business community is helping diversify the manufacturing sector in Fort Erie,” he said.
On Oct. 12, CannaCure obtained its ACMPR (Access to Cannabis for Medical Purposes Regulations) making it the 133rd company licensed to produce marijuana in Canada. The focus of the operation in Fort Erie will be to take marijuana and process it into tablets, concentrated oils and different edibles such as chocolates or gummies.
“These are exciting times with the birth of a new industry, not just in terms of what we are accomplishing in this sector, but also for Canada to be a global leader in setting standards worldwide,” said CannaCure co-founder Patrick Gagne during the company’s ribbon-cutting ceremony on Oct. 17, the day recreational marijuana use became legal.
“This is only the beginning for CannaCure; now the real work begins. We are thankful for all the support we have received from our local elected officials, our neighbours and shareholders.”
Two days later, it was an-
nounced that Heritage Cannabis, a Vancouver-based marijuana corporation, had completed its buyout of CannaCure stock. Heritage spent $40 million to acquire CannaCure. A statement from the company said the transaction does not include a “change of control” and that CannaCure shareholders have retained 39.5 per cent of the company via shares.
“This is a significant milestone for our company with our growth and expanded footprint,” Clint Sharples, CEO of Heritage Cannabis, said in a statement announcing the purchase.
“We believe this cornerstone asset uniquely positions us to expand our potential extraction business across Canada, satisfy potential targeted partnerships, and ensure we have flexible space and capacity to evolve with a rapidly growing market environment.”