Biome Grow acquired Back Home on April 25, 2018. Back Home is also in the late stages of an ACMPR cultivation license application (the Back Home Application) where construction on a new structure in Western Newfoundland began in the second quarter of 2018. The Back Home Application is in the detailed review stage. Back Home expects to be in a position to receive a cultivation licence to produce cannabis once Phase I of the construction of the Newfoundland Facility is complete.
The Newfoundland Facility will be 168,000 square feet in size and built in four phases. The Phase I will be a retrofit of the ground floor, an existing structure, which will result in a 18,000 square foot licensed facility. This first phase is targeted for a completion during the fourth quarter of 2018. Phase II will add an additional 50,000 square feet and will be completed in the first quarter of 2019. Phase III will be 100,000 square feet and completed in the second quarter of 2019.
The capital expenditure for the 168,000 square foot completed Newfoundland Facility is expected to be $45,000,000 and will be financed through a mixture of cash and debt. The employee headcount at the Newfoundland Facility when completed is expected to be 113 individuals. Moreover, Biome Grow believes the Newfoundland Facility has the potential to generate $99,500,000 in revenue per annum.
Subject to receipt of requisite Health Canada licenses and approvals, Back Home plans to open up to four to six retail locations in Newfoundland and Labrador by the end of 2019 to principally sell Back Home products to the local market. The majority of the production from the Newfoundland Facility will be for the local Newfoundland and Labrador market.