Canada’s PUF Ventures (CSE: PUFC) announced it plans to build a one million sq ft greenhouse in New South Wales, Australia, at a cost of roughly C$50 million.
This will make PUF Ventures one of the first major producers in the new Australian cannabis market. It is expected to be the largest cannabis cultivation facility in the southern hemisphere, and one of the largest in the world.
The first phase of construction will be 300,000 sq ft, and the first crop will be planted in late 2018. PUF will seek financing to cover the costs. At full scale, the facility could grow 100,000 kilograms per year, and generate revenue between C$800 million and C$1.1 billion per year. Management estimates total operating costs to be between 20-25 percent of revenue.
Industry observers estimate that the cannabis market in Australia could grow to $7.25 billion over the next seven years.
PUF Ventures Inc. also owns a majority interest in AAA Heidelberg Inc., a private Ontario company that is an advanced applicant for an ACMPR license from Health Canada. PUF’s wholly-owned subsidiary, Weed Points Loyalty Inc., is developing Weedbeacon, a tracking technology, and aims to become the first loyalty program targeting the emerging Canadian cannabis market.
PUF’s stock has risen 23% in recent days, to close at $0.58. The company has a market cap of $25.25 million.
Source: PUF Ventures press release