DENVER--(BUSINESS WIRE)--AmeriCann, Inc. (OTCQX Markets: ACAN), a company that designs, develops and owns advanced medical cannabis facilities, announced that it has expanded the scope of its partnership in Illinois. The Company’s partner, Wellness Group Pharms (WGP), recently received one of the eighteen highly coveted medical cannabis cultivation and processing licenses from the State of Illinois.
The amended agreement calls for AmeriCann to serve as the developer of a new facility to be called the Illinois Medical Cannabis Center (“IMCC”). WGP plans to utilize the IMCC facilities to cultivate, process and distribute medical cannabis to many of the state’s 52 newly licensed medical dispensaries.
When fully constructed, the IMCC will contain approximately 285,000 square feet capable of producing an estimated 50,000 pounds annually of medical cannabis. The facility will be located in Anna, Illinois and is expected to provide over 175 full and part time jobs to Southern Illinois.
AmeriCann will serve as the project developer and will own the IMCC, plus provide working capital funding and horticultural assistance to WGP. AmeriCann will receive a performance fee on all sales, a royalty on AmeriCann’s infused product and extraction line, a monthly consulting fee and monthly lease payments.
AmeriCann partnered with Wellness Group Pharms prior to the submittal of WGP’s application in Illinois. Paul Montes, Managing Partner of WGP stated that, “Our affiliation with AmeriCann was instrumental in our success in being awarded one of the few cultivation licenses granted in an extremely competitive Illinois application process.”
Only approximately 10% of those that applied for cultivation licenses were awarded licenses.
Mr. Montes added, “AmeriCann is delivering a level of expertise and resources that is unequaled in the industry. Our partnership is excellent because we share a commitment to provide the best medical marijuana possible to the patients in Illinois."
AmeriCann intends to commence construction of the IMCC in March with a first phase of approximately 27,000 square feet. WPG’s initial harvest is projected for late Fall 2015. AmeriCann plans to add additional cultivation capacity as the Illinois Medical Cannabis Program develops.
AmeriCann provided initial project funding of $600,000 to WGP on February 23, 2015.
“AmeriCann’s goal is to serve medical cannabis patients by providing state of the art facilities designed and built to produce high quality, consistent medicine that is cultivated and processed in a controlled, secure, and sustainable environment,” said Tim Keogh, CEO of AmeriCann, Inc.
With the inclusion of the IMCC project, the company has over one million square feet of greenhouse cultivation and processing facilities in the various planning stages and expects to build a significant portion of the planned facilities during 2015.
With a population of over 12.7 million people, Illinois is the fifth largest state in the U.S. and one of the largest to adopt a medical marijuana program.
AmeriCann plans to develop comparable facilities in other states that allow for the production and sale of medical cannabis to patients. On January 14, 2015 AmeriCann announced plans to acquire a 52.6-acre parcel of undeveloped land approximately 47 miles southeast of Boston and to develop the property as the Massachusetts Medical Cannabis Center.
Previously AmeriCann closed on a $2,250,000 all cash purchase of a five-acre parcel of land in Denver, Colorado with plans to develop it as the Denver Medical Cannabis Center. Plans for this project include 125,000 square feet of greenhouse and other facilities. The project has received preliminary approval from the local planning board.
AmeriCann has offices in Denver and Boston. The Company does not cultivate, process or sell cannabis.