Vernon-based True Leaf Medicine (CSE:MJ) announced September 28 it has acquired an option to buy 40 acres of land in Lumby
The company paid $100,000 to acquire the option, which is exercisable until the end of the year for a total cost of $3.3 million.
CEO Darcy Bomford called the agreement a milestone for the company.
“This property gives us the capcity to expand to meet the increased demand that is widely expected,” he said.
“With government approvals, the size of this site could allow us to build a 1,000,000 square-foot facility and produce more than 125,000 kilograms of cannabis.”
True Leaf said it is preparing to launch a $10 million round of Regulation A+ financing, with some of the proceeds earmarked for the purchase of the Lumby land.
The company is awaiting approval from Health Canada’s access to cannabis for medical purposes regulations.
This is not the first medical marijuana company to purchase land for cannabis production. In June, Emerald Health Therapeutics Inc. (TSX-V) bought a 25-acre greenhouse facility on 50 acres of land in Delta from Village Farms International. The companies said the facility was expected to yield 75,000 kilograms of cannabis annually.