Flagship medical cannabis complex announced for Brooks


City-owned property in the South Industrial area of Brooks has been deemed a “land package suitable for our vision of a [cannabis] facility that will house a research and product development park, as well as a significant grow facility,” stated Ken Faulkner, CEO and co-founder of Natural Health Alliance Inc. in an announcement last week. “It is rare that you could be involved in a new industry that has so much upside.”

Faulkner and vice-president Teddy Birovchak, attended a public meet-and-greet hosted by City of Brooks officials, to introduce their company’s long-term “economic benefit” to the community.

The Kelowna, B.C. privately-held company began as a small startup with a vision. The vision was get the backing of a community that was in support of creating a lot of new  job opportunities and also having some common goals in economic development. 

The City of Brooks met that criteria.

“We could not have been more fortunate to have the major support we have received from the community as well as a very progressive thinking Mayor, Council and Business Development staff representing the City,” he said. “They have made success of our brand much easier to plan for and far less costly to achieve. I would like to express our collective appreciation to them for their desire to make this a true Brooks success story.”

The company through its Alberta operating name NHA Inc., entered into discussion with the City in April, and after successful negotiations, has acquired unencumbered title to 28.09 acres of serviced industrial land near Young and Industrial Roads. There is also an option on 50 adjacent acres owned by the County of Newell.

The deal hammered out by the involved parties has given NHA the land title in favour of a general security agreement which allows for a payment schedule in six-month intervals that will commence upon the federal granting of the sales portion of its license in this newly regulated sector in Canada. 

The City of Brooks also has an option to convert the debt into stock in the company at .75 cents per share, which will make the community a valuable stakeholder of the company.

In addition to the sales portion, the research and development company is applying for cannabis cultivation, medical product and extraction.

Faulkner told his shareholders in a recent announcement that NHA has no immediate plans to go public until “we get a valuation that demands it”, even though – since the land acquisition – the company’s share valuation has appreciated. 

The first phase of construction will consist of a 30,000 square foot facility, which will house both grow, and research  and development used to advance the study of cannabis. According to Faulkner, the complex will have the option to significantly expand to between 2-4 million square feet of a state-of-the-art, purpose built, grow and science complex.

The business will positively impact the area’s workforce, both in the initial construction phase and then with the commercial business itself, which may create professional opportunities in the skills areas of horticulture, agriculture, research and aquaponics. The company believes there will be approximately 70 permanent jobs once the facility is completed.

This will be a long-term project of approximately 4-5 years and will be the envy of the industry,” said Faulkner. “We anticipate breaking ground immediately upon initial funding being secured.” 

The website www.nhainc.ca will be live in a few weeks, as company moves forward with its plans. 

There is no word yet on when construction will begin on the commercial site.

– with files

Posted on:
Tuesday, August 07, 2018