A Vernon facility has been harvested for potential cannabis cultivation and some major growth.
GreenTec Holdings Ltd. (GTEC) has entered into an exclusive binding letter of intent with F-20 Developments Corp. to develop a 240,000 sq. ft. indoor cultivation facility in Vernon.
F-20, a privately held corporation whose principals have been involved in the financing and construction of licensed cultivation facilities in Canada and the U.S, has secured a property with an existing 60,000 sq. ft. building that will be retrofitted as part of the first phase of construction to allow for the cultivation of cannabis. A second phase of the project will see the construction of a secondary purpose-built building to be 180,000 sq ft. in size. Phase 1 construction is expected to commence immediately upon the parties finalizing the definitive and ancillary agreements, and upon GTEC and F-20 incorporating a new company.
Despite some specultion, the location is not in the Ace Courier building (former roller rink location). Ace Courier has been at the Waddington Drive location for more than 25 years and is still in full operation. In fact, with the end of Greyhound services Oct. 1, the local company welcomes any one wanting to ship parcels to get in touch.
F-20 has committed to fund the large majority of the Phase 1 project costs up to $9 million, with GTEC committing to fund the final $1 million towards the estimated $10 million budget to complete Phase 1. F-20 will be the project manager and be responsible for the project’s Phase 1 construction and building retrofit, supported with oversight and guidance from GTEC’s operations and regulatory team.
“This project with F-20 further increases our production capacity in BC, which positions the Company one step closer to realizing our objective,” said Norton Singhavon, Chairman and CEO of GTEC Holdings. “The property is ideally located to maximize synergies with GTEC’s existing production and laboratory facilities. The ability to utilize F-20’s financial capacity and construction expertise will allow for GTEC to maintain focus on building and operating our existing facilities while leveraging our expertise to further foster the Company’s growth strategy.”
The closing will be subject to a number of conditions.
GTEC was founded in 2017 to capitalize on opportunities in the recent and rapidly growing legal cannabis industry. GTEC is a public corporation listed on the TSX Venture Exchange and based in Kelowna. GTEC is focused on growing premium quality craft cannabis in purpose-built indoor facilities. GTEC currently holds a 100 per cent interest in GreenTec Bio-Pharmaceuticals Corp., Grey Bruce Farms Inc., Zenalytic Laboratories Ltd. (in Kelowna), Falcon Ridge Naturals Ltd., Alberta Craft Cannabis Inc., and Tumbleweed Farms Corp. GreenTec is currently in the construction phase of an 80,000 square foot Health Canada Access to Cannabis for Medical Purposes Regulations facility. GreenTec also has expansion capabilities for a second site located on 160 acres in the North Okanagan, as well as a third site located on 35 acres on the Trans Canada Highway in Revelstoke.
GTEC has already secured two retail locations that comply with their respective municipal zoning bylaws.