Asterion to start work within weeks on $311m Toowoomba medicinal cannabis farm near Wellcamp Airport
The company behind a massive medicinal cannabis farm proposed outside Toowoomba is hoping to break ground next month, with the project to deliver up to 2000 jobs.
Development
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Work could start next month on a $311m Toowoomba medicinal cannabis facility, which is projected to employ up to 2000 residents during construction and operation.
Canadian company Asterion Cannabis is hoping to break ground by August on the new 40-hectare farm near the Toowoomba Wellcamp Airport after securing $30m in equity.
The funding from four backers will kickstart the project while also covering overheads ahead of a major public offering.
Along with employing about 500 workers during construction, the farm will require 250 employees when it opens in early 2024 and up to 1500 people at full capacity.
Asterion chairman and CEO Stephen Van Deventer, who was part of the team that turned Canada’s Aurora Cannabis into the second largest company of its kind in the world, said the project would generate $85m in revenue in its first year.
“I don’t do anything small,” he said.
“Watpac are the guys we have the construction agreement with (so) we’ll be doing a design and construct contract and that will be before we break ground.”
It comes just weeks after the business announced a merger with Australian Natural Therapeutics Group, which controls a majority of the domestic medicinal cannabis market.
The move will create an Australian subsidiary for Asterion, with ANTG now attached to the parent company.
Mr Van Deventer said the $67m merger was integral to both businesses.
“For us, we’d like to start capturing the market in Australia, brand Asterion here and create revenue streams,” he said.
“The reason ANTG wants to merge is within 18 months they’re going to be at full capacity (at its Armidale facility) and with no room to grow.
“This is one of those cases where one plus one equals three actually.”
The merger will be completed ahead of a public float on the Toronto Stock Exchange by as early as November, which is expected to raise between $50-$100m.
The company will also run a public offer in Australia in early 2022, regulations and Covid-19 notwithstanding.
“This facility is going to cost $311m, so after the listing we’ll be going around raising more funds,” Mr Van Deventer said.
“We won’t be carrying too much debt (by the time the facility opens).”
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