The controversial proposed expanded Aurora Cannabis Inc. medical marijuana production facility north of Cremona could produce at least 70 tonnes of product a year, according to financial and operational statements released by the company last week.
In a split decision on Nov. 23, Mountain View County councillors passed a land use bylaw amendment that redesignates an 89-acre parcel located adjacent to the existing facility from agriculture district to direct control.
The change could allow the existing 55,000-square-foot Cremona-area facility to expand to more than 600,000 square feet.
A development permit is still required for the company to go ahead with the full expansion. Because the designation is direct control Mountain View County council would be the body approving or rejecting any development permit application.
Some preliminary work at the site can proceed immediately under the direct control district.
A number of Cremona residents have opposed expansion of the facility, citing concerns such as possible increases to road traffic, water use and crime attraction.
In its statements released Nov. 29, the company said the expanded 650,000-square-foot facility could result in total production of more than 70,000 kilograms of marijuana annually.
“Management believes the state-of-the-art nature of the new facility will contribute to significant savings in production costs on a per gram basis,” official said.
Aurora executive vice-president Cam Battley told the Gazette that the company hopes to have the expansion completed in 2018.
The company is proposing two phases for the expansion, the first covering 24,192 square metres and the second more than 36,000 square metres.
The expansion is expected to allow for an increase in employment from the current 75 to 200, he said.
The current facility had product sales of more than 200 kilograms in November with a gross revenue of more than $1.6 million, the company said in its statements.
“Our industry-leading pace of patient registration, reflected in our rapid revenue growth, is a clear validation of the strength of our brand and our ability to successfully execute on our business strategy,” said Terry Booth, CEO.
“Based on our operational strength and our position as one of the recognized leaders on the capital markets in the cannabis sector, we were able to significantly strengthen our balance sheet both during and subsequent to Q1 2017.
“Our current cash balance of $50 million is one of the strongest in the sector, and positions us exceptionally well to continue executing on our growth strategy, particularly with the pending federal legalization of adult consumer use, and our plan to construct one of the largest envisioned cannabis facilities in the sector.”
Aurora began selling medical marijuana grown at the Cremona-area facility in January 2016.
“Revenues generated to date reflect what management believes is the fastest growth rate of active registered patients in the industry as the company scales up to full production capacity,” he said.
In related news, Aurora has announced plans for an 800,000- square-foot production facility in Leduc County.
Known as “Aurora Sky” the facility will cover an area larger than 16 football fields and will be the largest automated cannabis production facility in the world, capable of producing more than 100 tonnes of product a year.
“The proposed Mountain View County expansion (at Cremona) would be devoted in part to the establishment of a centre of excellence for the propagation of cannabis starting materials for the Leduc County greenhouse and Health Canada licensed home growers,” said Booth.
“It will also allow for additional cultivation of high-demand medical cannabis strains, large-scale expansion of Aurora's processing of cannabis oils and other derivative products, as well as high-technology upgrades to the county's packaging operations.
“Having now received redesignation approval from (Mountain View County) council, we will continue with plans to increase and enhance our presence in the county, with additional investment, employment and economic development.”
"Our industry-leading pace of patient registration, reflected in our rapid revenue growth, is a clear validation of the strength of our brand and our ability to successfully execute on our business strategy,"Terry BoothAurora Cannabis Inc. CEO
