Never-used St. John's cannabis production facility still idle after 2 years

It was builtin the White Hills area of St. John's for Canopy Growth, with the capacity to grow up to18,000 kilograms of high-quality cannabis annually.

But morethan two years after the Ontario-based marijuana company pulled out of the plan, the future of the massive, empty structure remains uncertain.

Canopy's own documentsshow that in 2018 the companycommitted to pay more than $24 million over five years to a numbered company that owns the land.

Those documents also show Canopyhas the option to purchase the production facilityat the end of that five-year period.

On Jan. 5, in an email to CBC News,Canopy confirmed it continues to lease the land but said it isn't ready to talk about next steps yet.

The 21,000-square-metreproduction facility, whichsits on a 12-acresite, has been ready to start production for more than two years. Everything is ready. Photos posted by Allied Construction Management show off the $90-million facility's pristineboiler room,pump room, open-concept office space and staff lounge.

In November, Canopy sold its$40-million New Brunswick production facility to another cannabis company.

On Jan. 3,Canopy announced it has finalized the sale of all of its Canadian retail stores, including those in Newfoundland and Labrador.

Deal announced in 2017

In 2017, the provincial government released details of an agreementthat it said would ensure Newfoundland and Labradorhada "safe and secure supply" of cannabis when prohibition ends in 2018.

Canopy Growth said it would provide up to 8,000 kilograms of cannabis and related products to the province annually, under a two-year agreement, with an optional one-year extension.

It also promised to build a cannabis production facility that it said would create about 145 jobs.

At that time, Canopy's now-former CEO BruceLinton said, "We're going to be invested here permanently."

The province didn'tprovide any moneybut promised to give Canopya break on the sales remittances it makesto the Crown-owned Newfoundland and Labrador Liquor Corp., whichregulates the distribution and sale of cannabis.

That break was tocontinue until the company recoveredits investment, up to a maximum of $40 million.

But in 2020, Canopy Growth announced its plans had changed.

The companyclosedoperationsin St. John's,Fredericton,Edmonton,Bowmanville, Ont., andits outdoor cannabis grow operations inSaskatchewan.

"These actions will be an important step towardachieving our targeted$150-$200 million of cost savings and accelerating our path to profitability.We are confident that our remaining sites will be able to produce the quantity and quality of cannabis required to meet current and future demand," saidDavid Klein, CEO of Canopy Growth.

At the time, Industry Minister Andrew Parsons said the provincial government wouldn't lose any money because of Canopy's about-face.

"$1.9 million that's been paid throughremittances, which is a complex process, butthat $1.9 million, which has been paid, will be paid back to government before the weekend,"Parsonstold reporters at the time.

"Right now this process has cost us zero dollars. This hasn't cost us a cent. Do I like the fact that there's an empty building over there wherewe were hoping to have a bunch of people working? Of course that's disheartening."

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