Dean MacDonald firms have same address as mystery company in Canopy Growth deal

A mystery numbered company that is leasing land to Canopy Growth for a government-supported cannabis production facility shares an address with firms linked to a prominent businessman with Liberal ties.

But Dean MacDonald says there are many businesses operating out of that downtown St. John's location, including Canopy Growth itself, which he says has had office space there since last spring.

MacDonald declined to say whether he has any connection to the numbered company, and steered questions about 80521 Newfoundland and Labrador to Canopy Growth.

He told CBC News there is a "cast of thousands operating out of that building" at 7 Plank Road in downtown St. John's.

It is also home to an advertising agency.

While MacDonaldinitially took no issue with describing Plank Road as the office address for the numbered company, he sent a text message on Tuesday morning clarifying the situation.

"While the permitting application was filed from Plank Road, it is my understanding that the numbered company's address is elsewhere," MacDonaldsaid. "80521 does not have office space in the building."

City building permits list address

Ownership of the numbered company has been the subject of intense scrutiny in the legislature, but has remained a mystery.

The sole director is a St. John's lawyer, and incorporation documents list the lawyer's office as the numbered company'saddress.

But city building permits list a different address for 80521 Newfoundland and Labrador Suite 301 at 7 Plank Road.

CBCNews obtained those documents through an access-to-information request.

The names of people associated with 80521 are redacted, for privacy reasons.

According to public records, at least three ofMacDonald'scompanies Newfoundland Growlers Inc., Deacon Investments, and Deacon Sports and Entertainment all have the same Suite 301 address.

Canopy cites concerns about 'U.S. border uncertainty'

Last month, when asked about the shareholders for the numbered company, Canopy Growth toldCBCNewsthat it is "unsure of the shareholder structure, it is a private business."

On Tuesday morning, in response to a follow-up inquiry, Canopy vice-president of communications Jordan Sinclair cited potential issues withcrossing the American border.

"The team at 80521 Newfoundland and Labrador explained that the U.S. border uncertainty raises concerns for them," Sinclair wrote in an emailed statement.

"The team at 80521 Newfoundland and Labrador explained that the U.S. border uncertainty raises concerns for them. This is a common concern in the cannabis space and as such, we are happy to respect their privacy.- Canopy Growth vice-president Jordan Sinclair

"This is a common concern in the cannabis space and as such, we are happy to respect their privacy."

Questions have been raised about the potential risksfor investors and employees in the cannabis industry when travelling into the U.S., where cannabis remains banned under federal law.

• Worst may be yet to come for cannabis execs, pot users looking to cross Canada-U.S. border, experts say
• Lifetime ban potential makes U.S. travel a 'calculated risk' for cannabis interests in Canada, lawyer says

As for the numbered company, Sinclair added: "We chose to do business with this group because they are experienced in the local market. With their help in identifying appropriate sites, we're well on our way to creating 400 jobs in the province and investing tens of millions of dollars as we build a world-class production facility."

Political questions over numbered company

Canopy is working to establish a $55-million facility capable of producing 12,000 kilograms of dried cannabis product a year, creating 146 jobs, and ensuring at least 8,000 kilograms of cannabis is available for sale in the province.

• Ontario company to supply marijuana in N.L., promises to build $55M production plant

In return, Canopy will be able to recoup $40 million of eligible costs through reduced sales remittances to the province.

Last month, CBC News revealed details of the lease arrangement Canopy has with the numbered the company that now owns the land.

The Liberal government says it does not know who owns the numbered company, and it doesn't matter.

• Ownership of mystery company in Canopy lease deal not of concern to N.L. government
• Canopy Growth will spend $25M over 5 years to lease St. John's site, with option to buy
• Who is behind the numbered company leasing St. John's land to Canopy Growth?

But the Opposition Tories have questioned whether politics may have somehow played a role in the Canopy lease arrangement, and called for an investigation by the auditor general.

• Tories want auditor general to scrutinize $40M Canopy Growth contract

MacDonald is a long-time Liberal who pondered a run for the leadership of the provincial party in 2012, before opting out of the race.

He called for a party shake-up after the 2011 election saw the Liberals barely cling to official Opposition status.

• On Point | Renewing the big red machine
• Liberals need to clean house: MacDonald

MacDonald was also a key player in the ensuing Liberalrenewal process.

Story raised in the legislature

PC Opposition Leader Ches Crosbieraised those past Liberal ties during question period at the House of Assembly Tuesday afternoon.

"According to media, the permitting application for the numbered company originated in the same suite as three companies owned by an individual by the name of Dean MacDonald, generally assumed to be an individual with Liberal Party connections, in a building where Canopy Growth also has an office," Crosbiesaid.

"I would ask the premier: How do we refute the suspicion in the public mind that this numbered company is benefiting because of ties to the Liberal Party?"

Innovation Minister Christopher Mitchelmorewas the one to respond.

"We've entered into a contract with Canopy Growth and with Biome to be able to grow an industry here in our province. We have a good business deal. We do not have any relationship with the private business matters that Canopy Growth or Biome or any other companyis doing. We have a performance-based contract. I've answered the details," Mitchelmore said.

"The member opposite is bringing in hypotheticals and what-ifs that is irrelevant, and is not part of the conversation of the contract with government."