Aphria, a medical marijuana producer in Leamington, is expanding.
It has entered into a partnership with Canadian based global cannabis business Nuuvera.
The partnership is aimed at expanding production across the global markets including Europe and Latin America.
Aphria will sell 100 of 200 acres of land it owns on Mersea Road to Nuuvera in exchange for a cash payment of $4-million. Aphria will then help with the design of a new one-million square foot greenhouse on the Mersea Property.
Aphria has also entered into an agreement to run the new facility once completed. The Leamington producer anticipatesthe deal will yield an annual payment of more than $10 million per year to Aphria, once Nuuvera's greenhouse is fully built out.
The partnership also includes a $2-million investment by Aphria in a Nuuvera common share offering.
Aphria will also supply 1,500 kgs of medical marijuana, growing to 17,000 kgs when Aphria completes its four-part expansion plan in 2018.
"This is an exciting strategic partnership for Aphria and Nuuvera," says Vic Neufeld, Chief Executive Officer, Aphria.
"This partnership is further recognition by the global cannabis industry of the strength of our greenhouse growing intellectual property, and of Aphria's strategy to monetize it, in order to create additional shareholder value," adds Neufeld.
