Recently, Deloitte completed an "Economic Impact Assessment for the Weedon Project," that MYM Nutraceuticals Inc. (CSE:MYM)(OTC:MYMMF) has been working on.
For those of you unfamiliar with the company's "Weedon Project" it is a 1.5 million square foot grow facility that MYM Nutraceuticals Inc. signed a contract with the Municipality of Weedon, Québec to build.
"The Economic Impact Study produced by Deloitte provides valuable insight into the immense benefits that the Weedon Project could have on the Province of Québec and Canada as a whole," said Rob Gietl, CEO of MYM. The completion of this study should have an incredibly positive impact on the completion of the Weedon Project, including the finishing of required financing.
Some of the notable takeaways from the study include (in CAD unless noted otherwise):
Total Economic Impact
The total economic impact (added value to the project's costs) for all construction projects and greenhouses operations on a 15-year period, assuming full production capacity, is estimated at $3.1 B for Canada. The breakdown goes as follows: $208.1 M for construction and $2.9 B for operations ($194.9 M per year). As for Québec, using the same calculation method, the economic impact over the same period of time is estimated at $2.2 B.
Government Tax Revenues
The construction projects and the greenhouses operations will generate tax revenues (excluding corporate taxes and potential excise duty) of nearly $493.4 M for the Government of Quebec and nearly $277.6 M for the Government of Canada. These revenues are segmented as follows:
more than $60.6 M from construction work, including $40.7 M for the Quebec government and nearly $19.9 M for the federal government;
Nearly $710.3 M over a 15-year period from operating expenses, including $452.6 M for the Quebec government and $257.7 M for the federal government. These estimates exclude excise duty on cannabis products revenues, as proposed by the Department of Finance Canada.
Other tax revenues are also expected for the governments of Quebec and Canada from excise duty on cannabis products. These revenues are estimated at about $1 per gram, depending on the type of product. The currently proposed revenue distribution by the Department of Finance Canada for the excise duty goes as follows: 75% for the Government of Quebec and 25% for the Government of Canada.
Considering a full production capacity of 165 M grams from dry cannabis and trim extracts, and considering 1 M seed plants for personal use, the total estimated excise duty revenues are $124,5 M for Quebec and $41.5 M for Canada.
On a 15-year period, and assuming full production capacity, excise duty will generate $1,9 B for Quebec and $622.5 M for Canada.
These tax earnings estimates exclude revenues from corporate taxes
Interestingly, the Weedon Project is just one of 3 large scale production facilities that MYM is currently working on in Australia and Canada. When completed, they will have a combined growing space that will exceed 2.7 million square feet.
If you want to know more about the Weedon Project, or take a deep dive into the "Economic Impact Assessment for the Weedon Project" yourself. The full report can be found here.
Needless to say, when MYM completes all of their projects, the combined economic impact will be tremendous. To stay up to date with important developments in the cannabis industry, be sure to subscribe to one or more of our free email newsletters. Also, connect with The Daily Marijuana Observer on Facebook, Twitter, and Instagram!