Vernon-based True Leaf Medicine International Ltd. has exercised its option to purchase 40 acres of land that encompasses its facility in Lumby.
The option was exercised on Dec. 22 at a total cost of $3.3 million. An up-front fee of $100,000 was paid to the vendor for the purpose of securing the option. True Leaf now has 30 days from that date to complete the purchase.
A month earlier, True Leaf launched its Regulation A+ offering to raise $10 million that was qualified by the Securities and Exchange Commission (SEC). The company will use a portion of the funds raised from the offering to build phase one of the True Leaf production facility in Lumby.
True Leaf’s application to produce and distribute cannabis under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) has completed the security clearance stage, and the company has permission to build a production facility.
“In addition to purchasing the 40 acres of land to build our facility, the proceeds of the Regulation A+ offering will also be used to acquire the best talent and technology available to help us fulfill our commitment to producing premium products,” said True Leaf CEO Darcy Bomford.
True Leaf anticipates that the first phase of the build will include annual production of 2,500 kilograms of dried cannabis once the facility passes Health Canada’s inspection and the company becomes a licensed producer.
True Leaf’s ownership of the land will allow it to go ahead with plans to demolish an existing building to make way for phase one: the construction of a 16,000 square foot hydroponic grow building and a 9,000 square foot building housing offices, extraction facility, laboratory and packaging areas.
The company expects site and foundation work to begin in the coming weeks and to be completed by summer 2018. The Government of Canada is committed to legalizing marijuana for recreational purposes by July 2018.
Village of Lumby council has thrown its support behind True Leaf which expects to become a significant employer in Lumby.
Founded in 2013, True Leaf has two main operating divisions: True Leaf Medicine Inc. and True Leaf Pet Inc. The company’s goal is to provide federally-approved, safe and effective cannabis products that will be sold across Canada and the United States.
Currently, True Leaf does not have a license to produce cannabis.