The firm aims to construct a 4.3 million sq ft (40 hectares) facility, which will be built in three phases
Asterion Cannabis Inc outlined the various significant milestones achieved as the private firm continues its bid to build the world’s largest glasshouse medicinal cannabis production facility in Australia.
In a lengthy investor update, Asterion, which is currently raising C$10 million via a placing, highlighted that in April last year, it inked a definitive deal to buy 75 acres of land in Toowoomba, adjacent to the Toowoomba Wellcamp Airport in Queensland.
READ: Asterion Cannabis launches C$10M brokered private placement
The firm aims to construct a 4.3 million sq ft (40 hectares) facility, which will be built in three phases - the first and second phases being 10 hectares each.
It will include full extraction and processing equipment as well as a research and development (R&D) facility.
Asterion aims to have an initial product ready with revenues within 24 months of breaking ground, and has established strategic partnerships with various bodies, including the Australian Federal government, the University of Queensland and PreveCeutical Medical Inc (CSE:PREC) () .
With the latter, it has struck an option deal to buy up to 51% of PreveCeutical's right, title and interest in and to certain intellectual property (IP) rights relating to cannabinoid Sol-Gel -- a nose-to-brain delivery technology.
Last year, Asterion was also awarded 'Major Project Status' for the project by the Australian Federal Government, qualifying for a 'one-stop-shop' advantage to co-ordinate and expedite future approvals.
It is also applying for Australian import and export licenses to import cannabis products from Canada to supply to Australian patients.
As well as getting its medicinal cannabis licenses, Asterion entered into a Definitive Association Agreement for the development, engineering and construction services for Phase 1 of the project with Finance Pty Ltd and Watpac Construction Pty Ltd.
Watpac is also considering financing the first phase of the project (estimated at A$400 million). Watpac is a wholly owned subsidiary of leading international construction company BESIX.
Under the terms of the financing, Asterion is offering nearly 6.7 million units at C$1.50 each. Each unit consists of one share and one half of a share purchase warrant, with each warrant entitling the holder to buy a further share for C$2 each for 24 months from closing.
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