A STATE-of-the-art $130 million greenhouse will be built in Sunraysia to cultivate up to 50,000 kilograms of medical cannabis per year.
Cann Group, which operates two medical cannabis facilities in Melbourne, today announced it had entered into a non-binding Heads of Agreement (HOA) to purchase a $10.5 million site within the Mildura Rural City Council boundaries, for large-scale cultivation and production of medical cannabis for domestic and export markets.
The new 34,000 sq m greenhouse is expected to be fully commissioned by the end of 2020.
Cann chief executive Peter Crock said Mildura was ideally suited to the design and size of the greenhouse which had originally been planned for Tullamarine in Melbourne.
"The Mildura site offers other important advantages, including a lower total build cost and lower ongoing operating costs, due to the dryer climate and higher sunlight hours resulting in reduced power use," Mr Crock said.
The company also announced it had entered a five-year agreement with Aurora Cannabis, the world's second largest cannabis company by market capitalisation, for Aurora to take medicinal cannabis produced by Cann.