Brian Harris' post as CEO and owner of Russell Breweries has turned out to be a gateway job for eventually joining the marijuana business.
"You could say that being at the brewery planted the seeds," he joked in a chat with Business in Vancouver.
Harris has co-founded MedAgri Marihuana Labs Inc., which has applied to Health Canada to be able to supply medical marijuana to the government under new regulations that will take effect April 1.
After that date, only licensed producers will be authorized to possess, sell, provide, ship, deliver, transport, destroy, produce, export or import marijuana for medical purposes.
MedAgri has acquired a 20-acre property in Maple Ridge to build a 150,000-square-foot secure growing facility.
Harris estimates that the first phase of the build-out will cost up to $20 million.
"To be approved, you have to comply with all of the conditions connected to the licence and I believe we've not only complied but we've exceeded all of the requirements from Health Canada to get the go-ahead and build," said Harris, who officially retired from Russell in September.
"We've committed to the property and have basically done all of the rezoning. The application is in the queue and, once we get approval, we'll commence building. It's just like building a brewery. They'll send in an inspector when that's approved, you're good to produce."
Harris bought Russell in 2004 and rapidly expanded the operation. In the past couple years, he started selling chunks to China-based FVI Capital Inc., which now controls the brewer.
Harris believes that Health Canada has already approved nine companies to supply medical marijuana after April 1 and that hundreds more have applied.
"There's only a handful of people who have put in what you would call sizeable business propositions to enter this marketplace," he said. "It comes down to whether your principals have got a clean record and are not connected to the old ways things have been done in the industry. You've also got to comply with the police and fire clearances and security clearances, which are very onerous. It's like building a federal penitentiary."
