Cronos Group Inc. announced on July 18, 2018 that it will be part of a joint venture partnership with a group of investors led by Bert Mucci of the Greenhouse Partners according to New Cannabis Ventures. This is one of Canada's most experienced greenhouse operators and builders. A newly formed entity has been set up for this partnership and is called Cronos Growing Company Inc. (Cronos GrowCo) and will be responsible for developing, constructing and operating a state-of-the-art purpose-built cannabis greenhouse in Kingsville, Ontario. This will be a 50/50 partnership and will take full advantage of Bert Mucci's long history of greenhouse growing experience. He is known for his investments and knowledge in innovative technologies and environmental stewardship. He has overseen thousands of employees and over 200 acres of fruit and vegetable greenhouses in southwestern Ontario.
The newly formed venture plans to develop an 850,000 square foot custom-built greenhouse on about 100 acres of land owned by Cronos GroCo in the greenhouse region of Kingsville, Ontario. The largest concentration of greenhouses in North America is in the Leamington/Kingsville region and is referred to as the "Sun Parlour" because it has the warmest climates in Canada. Construction is planned to begin this summer.
Once the Facility is fully operational and licensed, it will produce roughly 70,000 kilograms of cannabis per annum for Cronos GrowCo. The facility has been designed to elevate cutting-edge greenhouse technology in cannabis cultivation along with the latest in efficient environment control technologies. The Facility is also designed to meet GAP and GMP requirements and standards for cultivation, extraction and manufacturing activities.
A supply agreement has been established that will provide Cronos GrowCo access to domestic and international distribution channels. Greenhouse partners will offer its large-scale greenhouse design, build and operational expertise. Each partner will also contribute the required capital to Cronos GrowCo for operations. Cronos GrowCo presently expects to utilize debt to fund a portion of the Facility build-out. Construction remains subject to obtaining the required funding, the building permits and other customary approvals and licenses under applicable law.
"Cronos is thrilled to be partnering with the Greenhouse Partners. Bert Mucci's experience and execution with large scale commercial agriculture is second to none. This is a perfect fit, as all parties are committed to commercial efficiencies, technological innovations and most importantly, the highest quality products. This partnership combines the regional expertise of high tech greenhouses, cannabis cultivation, best practices and customizing the latest automation technology developed for commercial agriculture."
Cronos Group COO | David Hsu
Cronos Group is a world wide diversified and vertically integrated cannabis company with a presence across four continents. The Company operates two Canadian licensed producers regulated under Health Canada's Access to Cannabis for Medical Purposes Regulations: Peace Naturals Project Inc. and Original BC Ltd. based in British Columbia. Cronos Group is devoted to building industry leading companies that transform the perception of cannabis and responsibly elevate the consumer experience.
Per PR News Wire, Mike Gorenstein, CEO of Cronos Group, said "We believe this partnership serves as a textbook illustration of our strategy and how Cronos Group plans to execute on a global scale. It leverages the data and intellectual property we have been creating at Peace Naturals, our center of excellence, to create capacity and operating leverage in Canada with a premier expert in greenhouse execution, all accomplished in a capital efficient manner."
Bert Mucci, of Greenhouse Partners, said "I am very excited to be personally investing in this initiative. I am confident that Cronos GrowCo has put together a unique and talented management team of experts with over 50 years of combined experience to execute our vision. This management team shares my passion and is dedicated to making an impact on health and wellness in the 21st century."
