Peguis First Nation buys in to pot partnership

Hey there, time traveller!
This article was published 20/06/2018 (2136 days ago), so information in it may no longer be current.

One month after announcing its first marijuana production plant in the province, GrowForce Holdings Inc. says it will build a second in Selkirk — this time in partnership with Peguis First Nation.

Details such as the exact location are still being settled, but what is being contemplated is a $33-million investment for a building that will be at least 50,000 square feet.

That the announcement was made on National Indigenous People’s Day is not insignificant. Not only are further partnerships with Peguis possible in the future, but GrowForce and its funding partner — Toronto-based Bridging Finance Inc. — intend to engage other First Nations in production-facility partnerships across the country.

Thursday’s official signing of the joint venture comes on the heels of the passage of the federal government’s legislation to legalize and regulate recreational marijuana. Prime Minister Justin Trudeau has said marijuana can be legally consumed recreationally as of Oct. 17.

“We are looking to expand as we can and we are looking to partner with other First Nations. Peguis is our very first partner. We’re very excited to work with Chief Hudson. They have been great as we’ve negotiated this arrangement over the past seven months,” said Pat Witcher, GrowForce’s vice-president of strategic partnerships.

In addition to the 120,000 square foot Transcona plant in the old Schneiders facility announced last month, GrowForce also owns a 32,500 square foot plant in Brampton, Ont., that has secured a production licence and is 51 per cent owner of a smaller operation in Dunnville, Ont.

GrowForce facilities are operated exclusively by MJardin Group, North America’s largest turnkey operator of legal cannabis facilities with about 30 plants in 13 states.

GrowForce has also partnered with Bridging Finance Inc., a private debt financing business whose CEO, David Sharpe, is an Indigenous man from Mohawks of the Bay of Quinte (Tyendinaga) First Nation in Ontario.

“Both GrowForce and Bridging Finance are committed to reconciliation in terms of empowering our people to enter into the business world and certainly with this partnership we are going to be realizing that. I think we are going to benefit greatly and our community will benefit for many years to come,” said Peguis First Nation Chief Glenn Hudson.

Peguis has a few properties in the Selkirk area that are being studied to determine which one will work best depending on the design of the facility.

Hudson said in addition to the financial returns that are expected over the long term, about 150 jobs will be created during the development of the plant, many of them likely going to Indigenous workers — including Indigenous contractors who could be involved in construction work.

Among other elements of the MJardin connection is a robust training program that the parties believe will allow workers without prior experience in the sector to be eligible for employment.

Sharpe, who said Bridging was not initially interested in participating in the exploding marijuana business, was encouraged by both GrowForce’s business plan and its sincere interest in partnering with the Indigenous community.

“They asked me to come to Denver and I met with the principals and asked them how they felt about First Nation economic development. They were very in tune with the idea of job opportunities for Indigenous people. That is why we jumped in with them,” Sharpe said.

He said his own personal experience dealing with chief, councils, band governance and cultural issues makes it less risky for all concerned.

“We try to do it the right way,” Sharpe said. “Often the First Nation does not get equity and may just get a royalty stream. In this case, Peguis will have a majority stake.”

GrowForce is in the process of finalizing a reverse takeover to have its shares publicly listed, but Peguis’s interests at this time will be limited to its 51 per cent stake in the proposed Selkirk operation and will not include any other areas of GrowForce’s business.

martin.cash@freepress.mb.ca