Financing, Valuations & Use of Funds

Corporation usually seek funding of between $5 M to $20 M for the build out of the medical marijuana production premises and 1M  to 2 M in working capital for operational costs from production to first sales. 

The following steps are those described by Health Canada's in its ACMPR guidelines for the ACMPR  application process steps. Following the graph below, please note the orange line is the approx. amount of funding required over time, and black line is the estimated value of the application over time. The funding gaps below are where further funding is often required to reach the next milestone in the ACMR application process.

Second funding gap/step applicable for this business plan: is for the building of the “premises” according to the ACMPR application's specifications (which includes security). This is used to take place after the pre licensing inspection letter (the “PLI Letter”) , but Health Canada does not issue this notification anymore. There is rather a notice that it will inspect the premises after the applicant gives its written undertaking that it has complied with its various requests ready for the inspection for the issue of the licence to produce or cultivate.

Third funding gap: occurs after the Health Canada inspection and the grant by Health Canada of the Licence to produce. This is when funding is required for production during the lag time between the “licence to produce” and the “producer's licence” issued by Health Canada. The reason for this process is to determine by Health Canada if the production of dried Marijuana and Cannabis oils are quality compliant and safe before it is ready for sale. The lag time could be between four  to five months, depending on the variety of cannabis grown, and also depending on successful inspections by Health Canada.  Based on market information the market value the value of the Corporation after the issue of the cultivation license (before the the full ACMPR license)  would be approximately between $10 M and $25 M.