Asterion Cannabis announced Monday that its Australian subsidiary Asterion Australia has struck up a non-binding agreement to acquire about 90 hectares (222 acres) of farmland in South East Queensland, Australia for the production of medicinal cannabis for more than C$10m.
The property is located near the regional hub of Toowoomba and close to the Toowoomba Wellcamp Airport, which provides access to international freighter service.
The agreement for the land is between Asterion Australia and Wagners Properties Pty Ltd.
Upon the completion of the acquisition and the site preparation, Asterion plans to use the property to construct and house 4.3 million square feet of purpose-built greenhouses for the production of organic medicinal cannabis. The operation will include a research and development unit and manufacturing and production facilities as well as offices.
The acquisition is structured as an initial purchase by Asterion of about 75 hectares (185 acres – which is the primary parcel) of land together with an option for Asterion to purchase up to an additional 15 hectares (37 acres) of land.
Subject to satisfactory due diligence and the receipt of required approvals, Asterion will enter into a definitive agreement to acquire a freehold interest in the primary parcel for more than C$10 million.
Before the acquisition closes, Asterion’s engineering and construction contractor will identify the work required to prepare the site for Asterion’s proposed greenhouse facilities.
The production facility will be developed in three stages. The first two stages will each consist of a 10 hectare (25 acre) greenhouse facility while the final stage will be devoted to the completion of two 10 hectare greenhouse facilities.
The facility will use special plant tissue culture technology that will eliminate the need for mother plants, increase efficiency, lower costs and yield disease-free plantlets.
Asterion is a privately-held Canadian cannabis company with operations in Australia that specializes in organic medical cannabis.
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