Deloitte's Study of MYM's Weedon, Québec Project Shows Economic Benefit
VANCOUVER, British Columbia, January 30, 2018 /PRNewswire/ --
MYM Nutraceuticals Inc., (CSE: MYM) (OTCQB: MYMMF) (the "Company" or "MYM") is pleased to announce the completion of the "Economic Impact Assessment for the Weedon Project" from Deloitte, the world's leading accounting experts. The full report can be found at http://www.mymarijuana.ca
"The Economic Impact Study produced by Deloitte provides valuable insight into the immense benefits that the Weedon Project could have on the Province of Québec and Canada as a whole," said Rob Gietl, CEO of MYM. "We are in the final stages of lining up financing and making the necessary plans to break ground in Weedon to start building one of the world's largest greenhouse facilities."
Highlights include:
Fixed assets investments: Investments of $104 M are planned for the construction of cannabis production greenhouses in Weedon, Québec, as well as $119 M for the construction of a multipurpose center, which will include a museum, an auditorium, a cafeteria, a school, a restaurant, a bookstore, a luxury hotel, a clinic and a cannabis research and innovation center. These two infrastructures represent a total of $223 M in construction investments.
Total economic impact: The total economic impact (added value to the project's costs) for all construction projects and greenhouses operations on a 15-year period, assuming full production capacity, is estimated at $3.1 B for Canada. The breakdown goes as follows: $208.1 M for construction and $2.9 B for operations ($194.9 M per year). As for Québec, using the same calculation method, the economic impact over the same period of time is estimated at $2.2 B.
Economic impact generated by the construction: The direct value added to GDP from the construction projects in Canada is estimated at $93.1 M and the total impact (including indirect and induced impacts) is estimated at $208.1 M. The economic impact in Québec is estimated at $173.5 M.
Economic impact generated by the operations: The total economic impact in Canada of the greenhouses operations (including indirect and induced impacts) generated by the operating expenses is estimated at $2.9 B for a period of 15 years, or $194.9 M per year. The economic impact for Québec is estimated at $2.1 B for the same period.
Governments Tax Revenues: The construction projects and the greenhouses operations will generate tax revenues (excluding corporate taxes and potential excise duty) of nearly $493.4 M for the Government of Québec and nearly $277.6 M for the Government of Canada. These revenues are segmented as follows:
more than $60.6 M from construction work, including $40.7 M for the Québec government and nearly $19.9 M for the federal government; and nearly $710.3 M over a 15-year period from operating expenses, including $452.6 M for the Québec government and $257.7 M for the federal government. These estimates exclude excise duty on cannabis products revenues, as proposed by the Department of Finance Canada.
Other tax revenues are also expected for the governments of Québec and Canada from excise duty on cannabis products. These revenues are estimated at about $1 per gram, depending on the type of product. The currently proposed revenue distribution by the Department of Finance Canada for the excise duty goes as follows: 75% for the Government of Québec and 25% for the Government of Canada.
Considering a full production capacity of 165 M grams from dry cannabis and trim extracts, and considering 1 M seed plants for personal use, the total estimated excise duty revenues are $124.5 M for Québec and $41.5 M for Canada.
Over a 15-year period, and assuming full production capacity, excise duty will generate $1.9 B for Québec and $622.5 M for Canada.
These tax earnings estimates exclude revenues from corporate taxes.
Other potential sources of economic impact • The multipurpose CannaCentre building will include a museum, an auditorium, a cafeteria, a school, a restaurant, a bookstore, a luxury hotel, a clinic and a cannabis research and innovation center. These projects will also generate operational revenues, but these have not been quantified.
Moreover, the Weedon Project will include the construction of a 36 energy self-sufficient houses residential project with Ghouse.
The research and innovation center will also work to develop industrial hemp applications, in partnership with the Weedon economic corporation, in order to foster the creation of new businesses in the Weedon industrial park.
MYM also wants to enter into agreements with universities and research centers in order to collect and analyze clinical and scientific data on cannabis.
Lastly, MYM is committed to minimizing the environmental impact of the project. To achieve this goal, the aim is at carefully selecting sustainable materials and equipment and using sustainable energy sources.
Deloitte was compensated $25,725 to conduct the Economic Impact Study on behalf of MYM.
MYM cautions that it is relying on the projections and estimates of Deloitte and its Economic Impact Study. The Company's management believes that the expectations reflected in the study are reasonable as of the date hereof, but no assurance can be given that these expectations will prove to be correct and therefore should not be unduly relied upon.
About MYM Nutraceuticals Inc.
MYM Nutraceuticals Inc. is an innovative company focused on acquiring Health Canada licenses to produce and sell high-end organic medicinal cannabis supplements and topical products. MYM has two production projects in Québec that when completed will have over 1.5 million square feet of production space. MYM is also a partner in a 1.2 million square-foot production project (Northern Rivers Project) in New South Wales, Australia. Australia is an exciting new market that has recently legalized medicinal cannabis. To ensure a strong presence and growth potential within the industry, MYM is actively looking to acquire complementary businesses and assets in the technology, nutraceuticals and CBD sectors. MYM shares trade in Canada, Germany and the USA under the following symbols: (CSE: MYM) (OTCQB: MYMMF)(FRA: 0MY) (DEU: 0MY) (MUN: 0MY) (STU: 0MY).
ON BEHALF OF THE BOARD
Rob Gietl, CEO
MYM Nutraceuticals Inc.
http://www.mymarijuana.ca
Keep up to date with MYM on our social media channels:
Twitter: @MYM_Nutra
Facebook: @mymcanada
Instagram: @MYM_Nutra
Neither the Canadian Securities Exchange (CSE or CNSX Markets), nor its Regulation Services Provider (as that term is defined in policies of the CSE), accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate," "achieve," "could," "believe," "plan," "intend," "objective," "continuous," "ongoing," "estimate," "outlook," "expect," "may," "will," "project," "should," or similar words, including negatives thereof, suggesting future outcomes.
In particular, this news release contains forward-looking statements relating to, among other things, the Company's the timing and outcomes of legal and regulatory decisions, the ability of the Company to obtain the requisite funding for the project, the successful construction of the proposed facilities by the Company and its partners, and the Company's ability to produce and distribute its products. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors, including the successful navigation of the regulatory process, expectations regarding the legal landscape for cannabis in Canada, the ability of the Company to secure funding, construct the facilities and produce its products, the production capacity of those facilities, and the continued cooperation of its partners. The Company's management believes that the expectations reflected in this news release are reasonable as of the date hereof, but no assurance can be given that these expectations will prove to be correct and therefore should not be unduly relied upon. Except as required by law, the Company assumes no obligation to publicly update or revise the above forward-looking statements to reflect new information, subsequent or otherwise. For a further discussion of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on http://www.sedar.com.
Investor Relations
Terry Brown
1-855-696-2261
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