Callahan Group excited to grow with expansion into cannabis production

ST. GEORGE'S, N.L. — FRANK GALE
THE WESTERN STAR

ST. GEORGE’S, N.L. — David Callahan has strong praise for small businesses, but the owner-operator of the Callahan Group of Companies is ready for his company's transformation from small business to the realm of big business.
Environmental issues delayed last fall's anticipated construction start of a cannabis producing facility in Barachois Brook by Back Home Medical Cannabis Corporation, a subsidiary of Callahan's business.
Callahan, who is president of Back Home, said the provincial government is very focused on ensuring this project is done right the first time.
With those issues now dealt with, Callahan said Back Home and its parent company, Biome Grow Inc., expect construction to start in November.
In his address at the Bay St. George Chamber of Commerce Small Business luncheon Oct. 21, he said small business is and always has been the backbone of communities across in Newfoundland and Labrador.
Callahan said being in business came naturally. His father, Ron Callahan, started out with a small business — Central Service Station, a single-bay garage in St. George’s. It eventually grew into the Callahan Group of Companies.
“We were successful because of the people from our region who supported us. I praise the area for giving me and my family the opportunity to foster what we’ve done,” he said.
Callahan said small businesses are challenged today by new online consumerism. He would like to see people spending more locally to keep small businesses in the community alive.
His newest venture is called 'Back Home' for a good reason. Calllahan hopes it will bring people back home to work.
“We’re lucky as a family that we didn’t have to move away and that’s because of what my dad started 57 years ago,” he told his audience.
If people are going to stay here, he continued, they need more than the next mega project.
Now that he is moving from small business to big business, the bottom line for Callahan is maximizing how many jobs Back Home can create, from the production facility or through new companies developed because of the cannabis production industry.
“The future looks bright in terms of a new industry and one thing we need more so is the ability to believe in ourselves and make our own lot better,” he said.

frank.gale@thewesternstar.com

Highlights of Biome Grow Inc.'s cannabis production plans:
• Produce 24,000 kilograms over three years.
• Generate close to $100 million in annual revenue, beginning in 2020.
• Biome will have access to five retail licenses in the province, starting with one in St. George’s and another in St. John’s.
• Biome will invest $500,000 over five years for research and development in Newfoundland and Labrador.
• Back Home is expected to start producing Newfoundland and Labrador-grown cannabis in June or July of 2020. Biome Grow is committed to produce local cannabis in its production facility for a minimum of 20 years.
• The agreement with Back Home will provide for 200 jobs, 120 of them in production and 80 in retail in the province. Local hires whenever possible.
• The new production facility will be built in Barachois Brook in phases. Retrofit of an existing 18,000 square-foot building in Phase 1 and three 50,000 square foot sections of a new building in Phases 2, 3 and 4 for another 150,000 square foot facility.
• There is about $6.5 million in annual salaries related to the project, with average earnings of $54,000 per job.
• At peak construction, there will be 70 to 80 people working on-site.
Source: Biome Grow Inc.