Canopy Rivers, Canopy Growth and LiveWell have executed a strategic agreement to accelerate the development and commercialization of Livewell’s two large scale cannabis projects located in Ottawa, ON and Pontiac, QC, which collectively represent over 1,500,000 sq. ft. of future cannabis production and processing infrastructure.
“This new partnership represents further validation that Canopy is the platform of choice in the cannabis sector,” said Bruce Linton, Chairman and CEO of Canopy Growth. “Canopy has an unmatched ability to collaborate with partners given our breadth of operational knowledge, technology, investment capital, and cultivation expertise.”
“Rivers continues to look for synergistic and mutually beneficial opportunities to support emerging industry players with strategic advisory services and financial support,” said Sean McNulty, Co-founder, Canopy Rivers. “We will work collaboratively with Canopy Growth to accelerate LiveWell’s speed to market and deploy the resulting offtake throughout Canopy’s industry leading distribution platforms. With their Ottawa project located less than an hour from Canopy Growth’s Smith Falls headquarters, and 5 minutes from the airport, Livewell, once developed, represents a complimentary supplement to our portfolio of production and distribution partners.”
Canopy’s experienced team will provide Livewell with high-quality genetics for initial cultivation, access to trained personnel for guidance/support, assistance with standard operating procedures for compliance, and other strategic and financial support as needed to assist LiveWell in getting its facilities licensed and fully operational. Once licensed, LiveWell will also benefit from launching its brand(s) via Canopy Growth’s extensive distribution network including Tweedmainstreet.com, the largest registered patient network in the industry, and Canopy Growth’s extensive recreational retail channels.
“Partnering with Canopy Growth and Canopy Rivers, the leaders in the cannabis industry, provides LiveWell with the best in class partners required to execute on our ambitious growth plans in an efficient and expedited manner,” said LiveWell’s CEO Seann Poli. “Having access to their operational excellence, unique technology, global distribution infrastructure, and an abundance of other industry insights, we can significantly de-risk the execution and operation at both facilities. These significant executional efficiencies will drastically reduce our time to market and improve the quality of product we deliver.”
As part of the agreement, subject to the completion of certain milestones, Canopy Growth and Canopy Rivers, will each be issued equity in LiveWell. LiveWell has also received an initial purchase agreement from Canopy, for cannabis production at the Ottawa Project. In addition, LiveWell has the option to draw on up to $20,000,000 of debt financing from Canopy Rivers (subject to the completion of certain milestones) to support Livewell’s continued growth initiatives.
In late 2017 Artiva completed the acquisition of Sole Produce and now owns 100 acres of prime agricultural land located five minutes from the Ottawa International Airport and ten minutes from downtown Ottawa. The farm has been in operation since 1993 and currently produces eggplant, zucchini, and mini cucumber under 740,000 square feet of greenhouse, serving local and national grocers. The Phase I retrofit of 108,000 square feet of greenhouse and 36,000 square feet of indoor support is well underway and construction is scheduled for completion in Q2 of this year. LiveWell is the first company in Ottawa to be permitted to grow cannabis within the city limits. The ACMPR application for this site has been submitted; and subject to Health Canada and other standard regulatory approvals, the company anticipates being ready to begin in summer of 2018. Once Phase I is completed and licensed the plan is to immediately retrofit the balance of the facility bringing the total planned project to 540,000 sq. ft. all under one roof.
The 500 acre Pontiac site offers excellent conditions for sustainable development, innovation, investment, and partnership support. The site is ideally situated on the Ottawa River, one hour North-West of Gatineau, Quebec. It has an abundant water supply and power at some of the most competitive rates in North America. The site will host a Global Innovation Centre complete with a Cannabis and Hemp Research & Processing facility allowing for the development of precisely dosed consumable products for the medicinal, pharmaceutical, nutraceutical, and recreational consumer markets. The total planned project footprint is one million square feet of hybrid greenhouse and construction of the first 100,000 square feet has already begun.
For more information:
LiveWell
613.859.3753
info@livewellfoods.ca
livewellfoods.ca
Canopy Growth
1 Hershey Dr.
Smiths Falls, Ontario
K7A 0A8
1 855 558 9333 x 122
invest@canopygrowth.com
www.canopygrowth.com
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