CEN Biotech and Organic Growth International, which is partially owned by GrowLife Inc., are partnering on the $16 million facility, which is being built in Lakeshore, Ontario. When fully operational, the facility could produce up to 1.3 million pounds of marijuana annually, the companies said.
The companies hope to eventually export marijuana grown in the facility into the United States.
CEN Biotech is the Canadian subsidiary of the Michigan-based Creative Edge Nutrition, which recently received tentative approval from Canada to export marijuana.
CEN Biotech has completed the lengthy process of winning government approval for the site of the new building. The companies have not established a timeline for when the facility could begin growing marijuana.
The partnership between the two companies has also created a new corporate ownership structure. Grow Life now owns a 25% equity position in CEN Biotech, which entitles it to licensing fees and a percentage of all gross payments received by CEN Biotech. GrowLife will also supply all growing equipment and infrastructure to the new facility.
“The scale of the planned operations is truly unprecedented for legal cannabis worldwide,” said GrowLife CEO Sterling Scott in a press release.