Cannabis company Sunniva announced Wednesday it has sold the former mill site in Okanagan Falls to CannaPharmaRx for $20 million. (Sunniva photo)

Sunniva to sell $125m Ok Falls cannabis production site

Cannabis company says it’s focusing on it U.S. operations

The fate of what was to be a cannabis production facility in Okanagan Falls is uncertain now that the company that owns the property is selling it.

On June 12, the cannabis company Sunniva announced it has agreed to sell the site for $20 million to the cannabis real-estate investment company, CannaPharmaRx. The deal is scheduled to close on July 5.

READ MORE: Sunniva suspends construction of $125 million cannabis facility in Okanagan Falls

The sale is part of Sunniva’s move to focus on its California operations, which includes expanding its sales and distribution infrastructure south of the border, according to CEO Dr. Anthony Holler, who owns the South Okanagan winery, Poplar Grove Winery. The company hopes to have the California site operational sometime between July and September.

“We are directing our efforts and capital resources towards the completion of the Cathedral City facility and the ongoing development of our cannabis brands in California,” Hollar said in the media release.

The same reason was given in May when the company announced it would suspend work at the site.

At the end of May, Sunniva released its first quarter fiscal results, which totaled $14.2 million in revenue — up 175 per cent from the first quarter of last year. A total of $10 million came from sales of branded cannabis products in California.

READ MORE: Large scale marijuana facilities in industrial zones get green light

CEO of CannaPharmaRx Dominic Colvin said buying the property represents the company’s next stage of growth.

“(It) sets the stage for the next step in CannaPharmaRx’s growth strategy to become a significant player in the Canadian cannabis industry while continuing to strive to maximize shareholder value,” Colvin said in the same release.

Ron Obirek, Area D director for the Regional District of Okanagan-Similkameen, said he was hopeful there would a positive outcome after the May announcement from the company. He said he was part of the panel that heard from the company in 2018 and found their proposal to be extremely impressive.

“If somebody is going to spend $20 million to take over a strategy that has already been permitted and is in motion — that’s exciting. That’s a lot of money and they need another $100 plus million to finish if you had $20 million you probably wouldn’t spend it if you didn’t have another hundred or so to finish the project.”

The project is good for many reasons, Obirek said, but mostly because of the economic benefits it will bring to the town.

Under Sunniva, the 17-acre facility, which is half built, was to house greenhouses, a production facility and an administrative building. The company had originally planned to invest $124 million in the site and it was estimated to create 220 full-time jobs.

To report a typo, email: editor@pentictonwesternnews.com.


Robin Grant
Reporter, Penticton Western News
Email me or follow me on Twitter
Follow us on Facebook | Twitter | Instagram

Just Posted

Special memorial service to say goodbye to murdered teen

A memorial service and celebratio of life was held Tuesday for murdered teen Elijah-Iain Beauregard

Okanagan-Shuswap weather: cloudy, rain expected

Environment Canada is calling for a risk of thunderstorms tonight across the Okanagan

Juno-Award winning musician Bill Bourne to perform in Keremeos

Concert at the Grist Mill and Gardens starts at 7 p.m. on July 19

10th year for Great Naramata Cherry Pit Contest

The event is a fun-filled way to celebrate the local harvest

VIDEO: Plant-based burgers may not be as healthy as they seem

Both the Impossible and Beyond Burger have more saturated fat than beef burgers

Thunderstorms forecast across B.C.

Environment Canada has issued a thunderstorm watch for B.C.’s central Interior

Man fleeing police arrested in Summerland

Incident occurred on Tuesday evening

B.C. mom to go to Europe court in hopes of getting alleged abducted daughter back

Tasha Brown alleges her estranged wife abducted their daughter Kaydance Etchells in 2016

Missing South Okanagan kayaker last seen on Okanagan Lake

Penticton RCMP are asking for assistance in locating a missing kayaker

Lower gas prices slow annual inflation rate to Bank of Canada’s 2% bull’s-eye

Prices showed strength in other areas — led by a 17.3 per cent increase in the cost of fresh vegetables

Part One: The opioid crisis and the B.C. Interior

A personal connection to the crisis: Recovering addicts share their story

B.C. moves to preserve 54 of its biggest, oldest trees

Fir, cedar, spruce, pine, yew set aside from logging

Firefighters have doused a Peachland house fire

Fire crews are still on scene investigating the cause of the BBQ which made its way to the home

Most Read