A massive marijuana production operation on the drawing board in Quebec could yield enormous financial benefits for the province if it’s fully built out, according to a preliminary economic assessment by accounting firm Deloitte.
According to a news release, Vancouver, British Columbia-based MYM Nutraceuticals is planning infrastructure investments worth more than 220 million Canadian dollars ($178 million) in the town of Weedon that include:
- Luxury hotel
- Cannabis research center
Over 15 years, Deloitte estimates the project’s total economic impact for Canada at CA$3 billion, CA$2.2 billion of which would be felt in Quebec alone.
However the project still faces major hurdles before any economic benefits could be realized.
The Deloitte report assumes MYM achieves “full production capacity” of 150,000 kilograms of cannabis annually over 15 years, a target that industry experts say will be challenging to achieve.
The project is not yet funded.
The 1.5 million-square-foot greenhouse project has been approved by Weedon, two hours east of Montreal, and MYM is still in the licensing stage with Health Canada.
Other findings from the Deloitte report:
- Over a 15-year period, excise duty will generate CA$1.9 billion for Québec and CA$620 billion for Canada.
- In its most recent regulatory filing, MYM wrote: “Upon completion, the Weedon project is scheduled to produce annual sales of $1.275 billion with profit estimates of $650 million.”
- The project envisions building 15 medical cannabis greenhouses, each measuring 100,000 square feet.
- MYM is also a partner in a 1.2 million-square-foot production project in Australia.
- The company recently expanded into Colombia through a memorandum of understanding with Newcanna S.A.S.
MYM Nutraceuticals is traded on the Canadian Securities Exchange under the symbol MYM.