$GMEV the company has issued the equipment purchase order for a 450 tower vertical farm to be located in Abbotsford, British Columbia. Early details of the project were disclosed in a previous news release in July and management is pleased to report that a new business plan, prepared by an independent third party, confirms previous profit projections. Gross margin is expected to be $445,000 per year or 98% of sales. The joint venture is expected to generate a net profit of $113,000 per year or 25% of sales and payback on capital is expected to be achieved within the first two years of operation. These numbers are based on the actual long-term experience of the Company's technology suppliers with further confirmation from the Company's own experience over the past four months with its first Red Deer area vertical farm.
The Company is also pleased to introduce its joint venture partner-Life Leaf Gardens. The main principals of Life Leaf Gardens, Bobby James and Christina Sing, have been a prolific video marketing team and band for over 17 years. They have been affiliated with countless corporate entities through video production, show development, soundtrack composition, and performance. After visiting the Company's Red Deer area facility they were captured by a vision, now documented in their own media presentation-"use locally grown produce to cement ourselves as a trusted food source, building a lifestyle retail brand that provides nutritious food and local sustainability". Under the terms of the joint venture agreement, Life Leaf Gardens is committed to the purchase of 100% of the products from the Abbotsford operation; they have also offered the same commitment for all future Foundation Farms facilities throughout North America.