In August of 2014, AmeriCann partnered with Wellness Group Pharms (WGP) to assist with the application, capital, design, development and operation of a medical cannabis cultivation and processing license in Illinois. AmeriCann provided documentation, support and cannabis industry credibility for the application and the submittal of WGP’s application in Illinois. 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.
In February of 2015, WGP received one of the eighteen highly coveted medical cannabis cultivation and processing licenses from the State of Illinois’ Department of Agriculture.
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.
AmeriCann commenced construction of the project, called the Illinois Medical Cannabis Center (“IMCC”), in late February with a first phase of approximately 27,000 square feet. AmeriCann plans to add additional cultivation capacity as the Illinois Medical Cannabis Program develops.
“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 secure, sustainable environment. ”
Tim Keogh, CEO, AmeriCann
The partnership calls for AmeriCann to serve as the developer of the project. WGP will 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 is located in Anna, Illinois and is expected to provide over 175 full and part time jobs to Southern Illinois.
As the project developer, AmeriCann 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.
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.”
Construction was complete by December of 2015 with sales commencing in early 2016.
