Canada is on a determined path to legalize both medical and recreational use of Cannabis. At some point later this year, across all of the Canadian provinces Cannabis will be legally sold thus increasing legal demand and suppliers are rushing to accommodate expectations of a booming marketplace.

Green Mountain Health Alliance is one of these companies and it is crowdfunding growth capital on FrontFundr now seeking minimum raise of $500,000. The campaign currently stands at $137,500 having received the backing of 120+ investors. The offer is for common equity at $0.50 per share (US $0.38) at a pre-money valuation of $15 million. US accredited investors may participate as well in the offer.

So what is interesting about Green Mountain?

The company is located in Penticton which is a prominent Canadian wine region (Okanagan) that happens to be a perfect location to grow Marijuana as well. The company is preparing a 200,000 square foot facility that is said to be one of the biggest in the region and is part of the plan to reach 1,000,000 sf over the next 30 months. The company reports that it has secured over 140 acres for the operation. The goal is to launch a large-scale, low-cost, quality cannabis wholesaler. Capital raised during its crowdfunding round will be used to complete construction on its initial test greenhouse facility. The first test harvest is expected to take place later in 2018.

Green Mountain has submitted an application to become a licensed cultivator, processor and distributor of Cannabis within Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR).

As a wholesale producer, GMHA aims to fill a gap in the Canadian cannabis market, including the emerging recreational cannabis market, upon legalization in Canada. This business model effectively eliminates retail risk. The company has secured over 140 acres with the potential for over 1,000,000 square feet of growing space. The first site will be an 200,000 square foot facility on an 16 acre parcel, located in Canada’s best growing area, the Okanagan. Construction is already underway at the first of three facilities.

What is the biggest risk to the company? If the license applications are not approved the company will not be able to execute their business model. The company says they are working diligently to comply with all of the requirements of Health Canada.

Green Mountain has also partnered with the Penticton Indian Band, who will provide much of the labor necessary for the construction and ongoing operation.

While there are already around 90 licensed producers in Canada, the company says most of these are small operations that are “selling everything they can grow” to meet demand. They also state there is an estimated $6 billion gap in the market and they want to help fill this void.

If everything goes as planned and they receive their license, the company has a major capital raise on their roadmap. The Offering Memorandum is available here.

Salil Dhaumya, Co-Founder and CFO of Green Mountain Health Alliance, recently stated;

“We are very proud to be the first private cannabis company in Canada that is opening our investment opportunity to everyone. We want all Canadians to have the opportunity to join the cannabis economy and in the few days since we’ve launched the campaign we’ve seen that there is a real interest”.