InvestmentPitch Media Video Discusses Licensed Cannabis Producer FSD Pharma’s New $105 Million Facility Valuation, Potentially $420 Million with Completion of 3 Million Sq Ft Expansion – Video Available on Investmentpitch.com
November 29, 2018 MJ Shareholders
November 29th, 2018
Vancouver, British Columbia–(Newsfile Corp. – November 29, 2018) – FSD Pharma Inc. (CSE: HUGE) (FSE: 0K9) (OTCQB: FSDDF), a licensed cannabis producer, announced that according to a new official Comprehensive Property Value Assessment, its Cobourg, Ontario land and facility now has a Fair Market Value of $105 million. The facilities, the former Kraft plant, sit on 72 acres of land with 40 acres primed for development and an expansion capability of up to 3.9 million square feet. It is situated on the Toronto to Montreal corridor of Highway 401 with easy access to U.S. border crossings.
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Due to the nature of the property, the current value assessment of $105 million was calculated using the cost approach which included:
- Property improvements of over $10 million by the company since acquisition,
- Ongoing joint venture capital improvements by Auxly Cannabis Group Inc. (TSXV: XLY) of over $50 million, and,
- Government-Issued Licenses for the production and sale of cannabis attached to the footprint of the property.
Also considered in the assessment were unique features of the site, including its classification as a special use/purpose government food-grade facility with rail access directly on the property, an on-site power generating station, and substantial ongoing capital renovations under Health Canada Guidelines and Specifications. In the opinion of the commercial real estate assessment specialist that provided the valuation, the property as a whole at the time of completion and operation of approximately 3,000,000 square feet would have an overall estimated property value of $420 million, based on an average cost of 250 dollars per square foot to build out.
At full capacity, the facility is expected to produce 400 million grams of dried cannabis flower per year.
Dr. Raza Bokhari, Interim CEO and Co-Chairman of the Board, stated: “The Company continues to collaborate with our partner Auxly to build out our Cobourg facility, which currently includes 620,000 square feet of building space available with a phased-in plan over the next 6 years to build out a total of 3,896,000 square feet. We are pleased to see that our ongoing efforts are paying off, both in terms of grow space expansion and capital investment.”
FSD Pharma through its wholly-owned subsidiary FV Pharma, is a licensed producer of marijuana under the Access to Cannabis for Medical Purposes Regulations and is now operating under the recently enacted Cannabis Act. The company is focused on the development of the highest quality indoor grown, pharmaceutical grade cannabis and on the research and development of novel cannabinoid-based treatments for several central nervous system disorders, including chronic pain, fibromyalgia and irritable bowel syndrome.
FV Pharma management’s mission is to transform the facility into the largest hydroponic indoor cannabis facility in the world. The company’s phase one growth plan involves the development of 25,000 square feet of indoor grow space and an additional 220,000 square feet, which pending approval by Health Canada, is expected to be operational in the first quarter 2019.
For more information, please visit the company’s website, www.fsdpharma.com, or contact Zeeshan Saeed, President and Founder at 416-854-8884 or email firstname.lastname@example.org. For investor relations email IR@fsdpharma.com.
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About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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