Valens GroWorks breaks ground with their new subsidiary company Valens Farms and commences construction of its $75-million 400,000 square foot commercial cannabis production facility in the Okanagan Valley in British Columbia in a joint venture partnership with Kosha Products Inc.
“This is a pivotal initiative for the Okanagan Valley, for British Columbia, the Canadian cannabis sector, and our goal of providing premium cannabis and derivatives to the world’s natural health products industry,” says Tyler Robson, CEO of Valens GroWorks. “We are very proud of what Valens Farms represents, as an important contributor to the local economy through investments and job creation, and as a partner in our previously announced Centre of Excellence in Plant Based Medicine Analytics initiative underway in nearby Kelowna.”
The municipality of the city of Armstrong has approved the building of up to 851,200 square feet of greenhouse and indoor facilities, representing 40 per cent site coverage on the 50-acre property currently owned by Kosha.
“I feel very fortunate to have the opportunity to work with a company that is passionate about what they do, about the products they produce, and has a particular focus on innovation and value,” states Ashley McGrath, president of Kosha. “Valens benefits from our real estate planning and development experience and as an off-balance sheet funding source, and we in turn participate in the exciting growth potential of this nascent industry.”
The joint venture partnership will see Kosha contribute the land and all facility development and construction costs and related expertise. Valens will provide design and outfitting inputs, budgetary guidance, consulting and advisory services during construction and development of the facility.
Valens Farms will operate the facility to commercially produce premium quality cannabis and expand the company’s CO2-extracted cannabis oil capacity. Upon initial construction and development cost recoupment by Kosha, each of Valens Farms and Kosha are entitled to 50 per cent of the revenues earned, and a 50 per cent interest in all the combined assets.