MMJ to Expand Land for Greenhouse Cannabis Production

Published at Aug 3, 2016, in ASX Biotechs

MMJ Phytotech (ASX:MMJ) has executed a binding Letter of Intent (LOI) with Cowichan Tribes (the largest single First Nation Band in British Columbia) to lease 13 acres of land directly adjacent to its Duncan Facility in Canada. The extra land would significantly expand MMJ’s production capacity.

While the terms of the lease are still under negotiation, MMJ estimates the extra land could support up to 10 acres of greenhouse production space potentially yielding over 25,000kg a year of cannabis – more than 25 times the current production capabilities at the Duncan Facility.

The Duncan Facility currently only produces 1000kg of cannabis per year, but the extra land would position MMJ as one of the largest cannabis cultivation operations in Canada.

“The company is pleased to have entered this strategic land expansion agreement for our Duncan Facility, which provides the land access which would be required for the requisite scale for MMJ to become one of the largest producers of cannabis globally,” said MMJ Managing Director Andreas Gideon.

Land expansion would not only increase production capacity, it would also strengthen MMJ’s supply chain and play a key role in supplying the soon-to-be-legalised Canadian recreational market.

Conservative estimates for recreational sales are approximately CAD$5 million (AU$5.01) and with only 29 companies licensed to produce medical cannabis in Canada, MMJ is in a first mover position to target the recreational market.

MMJ is yet to tap this market, however, so if considering MMJ as an investment option, base your decision on all information with regard to this company and seek professional financial advice.

MMJ has agreed to pay Cowichan Tribes CAD$1000 per month until the expiry of the option agreement in 1 June 2017, or the entry into a lease agreement. MMJ will also work with Cowichan Tribes to identify any employment opportunities at current or expanded operations for Cowichan community members.

The land has been vacant for several years, but was previously used for commercial greenhouse growing operations. MMJ will adopt a similar greenhouse growing system to those implemented by licensed producers including the $153 million capped Aphria Inc. (CVE:APH) and Tweed Farms Inc., which has a 350000 sq ft greenhouse in the heart of the Niagara region. By adopting this approach MMJ expects capital costs to be much lower than with traditional indoor cannabis cultivation facilities.

Where to invest $1,000 right now

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!