Pubdate: Wed, 26 Feb 2014
Source: Detroit News (MI)
Copyright: 2014 The Detroit News
Contact:  http://www.detroitnews.com/
Details: http://www.mapinc.org/media/126
Author: Michael Martinez
Page: 1A

POT 'PIONEERS' FIND ROOM FOR GROWTH IN ONTARIO

Area Entrepreneurs Plan Farm As Canada Tweaks Medical Marijuana Rules

Starting April 1, Canadian law will allow the commercial production
and sale of medical marijuana, and one Metro Detroit company hopes to
cash in on the new market.

Creative Edge Nutrition Inc., based in Madison Heights, has purchased
more than 10 acres near Windsor, and plans to build a
27,000-square-foot indoor pot farm to grow 1.3 million pounds of
marijuana annually to sell in Canada, Israel and other countries that
allow it.

The company's Canadian-based subsidiary, CEN Biotech, recently broke
ground on the Lakeshore facility, and is awaiting government approval
to grow, sell and import/export marijuana a few months after the
building's completion, expected in two to three months.

"We consider ourselves pioneers," said Bill Chaaban, CEO of Creative
Edge. "We intend to sell in every country we'll be legally allowed
to." Chaaban expects the business to be very profitable; he estimates
$5 billion in sales per year with an 80 percent profit margin. Canada
will have about 37,800 medical marijuana patients who will need
suppliers after April 1, according to Health Canada, the country's
health department, so industry experts say it's a good business
strategy that sets up Creative Edge for more success if U.S. marijuana
laws change.

"It's a pretty smart move," said Chris Lindsey, a legislative analyst
with the Washington, D.C.,-based Marijuana Policy Project. "If the
U.S. laws change, they're in a really good position because they have
the infrastructure already operating. I think it's an attractive
business model."

About 450 companies have applied for similar licenses, Health Canada
said, and eight companies have so far been approved. The organization
does not comment on potential licensees until they are approved, and
could not talk about Creative Edge's application.
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MAP posted-by: Matt