The green rush in Germany is on, with a Canadian cannabis producer ready to spend millions to expand in the country ahead of the country’s launch of a medical cannabis market.
Maricann Group Inc. (CSE: MARI), a licensed producer and distributor of medical cannabis in Canada, has secured $42,500,000 in non-dilutive financing to further expand operations in Germany, the company has announced. The funds come from The Green Streaming Finance Company of Canada Inc., a Vancouver, BC-based company that provides non-equity financing to cannabis producers.
Under the terms of the agreement, Maricann will receive investment in two separate payments of $15,000,000 and $27,500,000.
The money be used to fund construction of a state-of-the-art, 150,000 square-foot expansion of cultivation operations at the company’s existing Ebersbach Facility (pictured above) as well as an additional 250,000 square-foot, two-tiered cultivation expansion project. An additional outdoor farm will assist Maricann develop its high-CBD cannabis products.
The facility, a former Cargill plant, is located west of Dresden. It was constructed 20 years ago at a cost of 80 million euros. There are multiple individual clean rooms, according to a Maricann press release, that are ideal for cultivating cannabis.
“The Ebersbach facility offers Maricann a significant advantage in cost of overall construction and speed to market. The infrastructure for cultivation of cannabis in an indoor secured environment is already in place,” CEO Benjamin Ward said in a statement.
“We simply need to add the fertigation system, lights and benches for growing, and then can be operational,” he added. “Our competitors are spending north of $70,000,000 CAD for facilities with less than 1/3 the footprint of our Ebersbach location. To construct a similar facility today, the estimated cost would be over $120 million EUR.”