The province has inked another cannabis production and supply agreement, this one with a company that has roots on the province’s west coast.
The Newfoundland and Labrador government signed a performance-based three-year agreement with Biome Grow, a Canadian company that owns the Back Home Medical Cannabis Corporation in Barachois Book on the province’s west coast.
Under the terms, Biome will produce 24,000 kilograms of product — 4,000 in the first year and 10,000 in each of the next two years — making it the largest cannabis supply agreement in Atlantic Canada and one of the top five of its kind by quantity in Canada.
The company expects the agreement will result in close to $100 million in revenue per year starting in 2020.
For its part, the province expects to rake in more than $15 million in revenue.
With this deal and government’s previous agreement with Canopy Growth, the province says it has a guaranteed supply of at least 40,000 kilograms over the next three years.
Government also says it is in discussion with other potential producers, including local firms.
The agreement also allows Biome to recover up to $52 million through reduced remittances to the Newfoundland and Labrador Liquor Corporation (NLC).
Construction of the $60 million production facility is already underway. The first phase involves retrofitting an existing 18,000 square foot structure, followed by a 150,000 square foot expansion in 2019. By the time it’s completed, it will be the largest cannabis production facility in the province.
The company will also have five licenses to operate retail stores as part of the agreement, the first of which is expected to be located in close proximity to the growing facility.
In total, Biome and Back Home expect to create 120 production jobs, along with another 80 or so at the retail stores and associated infrastructure.
Biome will also invest $500,000 over five years for research and development within the province.