7ACRES prepares to ramp up production in Kincardine

$55 million agreement with CanaccordGenuity Corp. for convertible debenture units
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By Barb McKay

7ACRES, formerly known as AMMCan, in Kincardine is now able to expand its operations thanks to $55 million in private placement financing.

Supreme Pharmaceuticals, which owns medicinal marijuana producer 7ACRES, announced last month that it has entered into an agreement with CanaccordGenuity Corp. on behalf of a syndicate of underwriters who have purchased, on a bought deal, convertible debenture units for an aggregate principal amount of $55 million.

According to a media release from Supreme Pharmaceuticals,the deal is subject to closing conditions, including Canadian Securities Exchange approval, and is expected to close today (Wednesday). Supreme intends to use the net proceeds to expand operations at its hybrid greenhouse facility at the Bruce Energy Centre in Kincardine.

7Acres received its licence to cultivate medicinal marijuana at the more than 300,000-square-foot facility from the federal government back in March. The production facility employs a hybrid greenhouse system that uses up to 60 per cent less energy than most indoor greenhouses. 7ACRES currently employs more than a dozen people and is expected to increase its workforce to approximately 200 when the facility is fully operational.

A source with Supreme Pharmaceuticals told The Independent on Monday that the facility is being developed in four phases and is currently halfway through the first phase, utilizing 16,500 square feet of growing space. When the expansion is complete, 7ACRES will have the capacity to produce up to 50,000 kilograms of medicinal marijuana annually.


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