Imperial Tobacco – WeedMD Turning Over a New Leaf Imperial Tobacco – WeedMD

Market Transition Aylmer was the home of the Imperial Tobacco processing plant from 1946-2007 55 Acre site Over 1mn square feet under roof Peak employment of 80 full time staff and 515 seasonal workers Closure announced in 2005, facility closed in 2007

Elgin Innovation Centre Site was purchased and transitioned into the Elgin Innovation Centre in 2010 Open minded ownership group set out to fill over 1mn square feet of multi-tenant space Bespoke independent 3+ acre parcel available Existing building c. 26,000 square feet Application in 2013 for Medical Cannabis License Began growing and storing plants in 2016 Final approval to sell from Health Canada in April 2017

Keys to Success Council support for embracing new ideas for the facility Early consultation with Council from the applicant regarding the intended use – letter of support Medicinal cannabis was not as politically charged as recreational cannabis Zoning by-law for Heavy Industrial Zone already permitted a pharmaceutical and medical products industry Converting the existing building did not require substantial changes or Site Plan Approval Applicant had the ability and means to commit to the necessary security improvements required for a licence

Where there’s smoke, there’s fire… One facility created its own cluster opportunity Inquiries for industrial land purchase for production of Cannabis increased to approximately one per month since 2016 Many inquiries are urgent, unlicensed and unreliable – be prepared to confirm where you are located! Producers are large users of utilities – be prepared to address the cost associated with water and power in your municipality Innovation in this industry is moving much faster than typical municipal processes can support

What can you do to be ready? Understand if your municipality is classifying production as agricultural or industrial production Confirm how your zoning by-law addresses both medical and recreational cannabis Confirm if greenhouses are permitted in industrial zones Understand the lengthy approval timeframe for licencing – extend land sale development clauses Address all aspects of the industry in your zoning by-law – production / bi- products / oils etc. Retail cannabis opt-in shows general support for the industry

It’s a growing industry… WeedMD was listed on the stock exchange on April 27, 2017 Companies continues to expand and grow their operations Product innovation is a key theme across the industry Recreational cannabis appears to have supercharged the market for existing producers