Canadian cannabis companies seem to be taking over the world as of late. The recent target of their geographical expansions? Australia. Aphria Inc. (TSX:APH) (OTC:APHQF) just completed its first cannabis oil shipment to Australia, and Canopy Growth Corp. (TSX:WEED) (OTC:TWMJF) just entered a supply agreement with AusCann Group Holdings Ltd. (ASX:AC8) (OTC:ACNNF). But what about the smaller, lesser covered cannabis companies?
Look no further, because PUF Ventures Inc. (CSE:PUF) (OTC:PUFXF) and MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) just recently announced a partnership to build out a massive one million square foot greenhouse facility in northern New South Wales, Australia called the Northern Rivers Project.
"Entering into this partnership is yet another step towards building MYM into a global leader in cannabis production. Getting in on the ground level of a market as large as Australia represents a massive opportunity for MYM," said Rob Gietl, CEO of MYM. "Our experience in dealing with all levels of government will certainly pay off, as there are many similarities between the Weedon, Québec project and the Northern Rivers Project in New South Wales."
About the Northern Rivers Project
The Northern Rivers Project is a partnership with the Richmond Valley Council, the local government in New South Wales, Australia, and PUF Ventures Australia, a recently formed majority-owned subsidiary of PUF, to construct a one million square foot greenhouse operation, with large-scale manufacturing, processing and office facilities for the cultivation, production and manufacture of medical cannabis and associated products.
PUF will own 35% of the Northern Rivers Project, which, at full scale, will have the capacity to produce 100,000 kilograms of high quality cannabis per year, worth between $800 million CAD and $1.1 billion CAD (based on current pricing metrics in the Australian cannabis marketplace).
Australia has introduced progressive medical cannabis laws in the past few years, and are essentially where Canada was four years ago. Assuming recreational cannabis becomes legal and with a population of more than 24 million people, it is estimated that the cannabis market in Australia will grow to $9 billion CAD over the next seven years making it a very attractive market.
Being one of the first large-scale production facilities in the Australian market, PUF and MYM could capture a significant portion of that potential revenue. By entering this market through a strategic partnership with the local land-owning government, PUF and MYM are positioned to become leaders in both Australian and global cannabis production.
The Northern Rivers Project includes a land purchase option agreement with the Richmond Valley Council for a 27-hectare parcel of land near the town of Casino in northern New South Wales, Australia.
Vaughan Macdonald, General Manager of Richmond Valley Council, stated that they are very excited to be working together on the Northern Rivers Project with international partners and fully support the development of this important new industry which will significantly add to gross regional product, create approximately 300 direct new jobs in the local economy, and lead to other follow-on local and regional employment opportunities.
We'll be sure to keep readers informed as more developments are released regarding the two companies' Australian joint venture. Be sure to subscribe to one or more of our free e-mail newsletters so you never miss an important marijuana stock update. Also, don't forget to connect with The Daily Marijuana Observer on social media via Facebook, Twitter, StockTwits, YouTube, and Instagram.