Neptune Technologies and Bioressources Inc (NEPT) Q4 2019 Earnings Call Transcript
But we -- I personally believe, as I said before, we're a tweet away from at that, that the majority of Republican voters are in favor. There is north of 30 states that have some kind of legalization. There is a ton of jobs and there is a ton of tax revenues, and I think it will come, it's a question of when? And when that day comes, we're going to be very happy as a corporation to have that footprint, that team, those capabilities, that equipment in place to take advantage of it. And that was part of our motivation to look at the situation.
Chen Lin -- Lin Asset Management -- Analyst
Okay, great. Thank you for taking my question.
Jim Hamilton -- President and Chief Executive Officer
It's a great pleasure.
Operator
And your next question will come from Chris Damas of BCMI Research. Please go ahead. Your line is open.
Chris Damas -- BCMI Research -- Analyst
Yes, congratulations on those deals. I'm an ex-organic chemist and I was curious. It sounds like you have legacy ethanol extraction equipment in size. Could you comment on flammability risk and how much of that CAD11 million is going into ensure against that kind of hazard since you're going holus-bolus in ethanol versus supercritical CO2? Thank you.
Jim Hamilton -- President and Chief Executive Officer
Yeah. It's an interesting question and probably best answered by our manufacturing. Let me just say that, when one is running with ethanol, clearly the security and the safety measures are more. I'll give you an example, your cameras need to be explosion proof as an example and you need more sensors through the process and the buildings, et cetera. So, it is a -- from a technology standpoint, more demanding. We're pleased that this building has already been constructed and it's a legacy capability that we can adapt to this business. But it -- and you would know this with your ethanol experience, we like it a lot. It is -- for example, it takes about 20% of the energy that CO2 does. It -- you can do it minutes, would takes hours in CO2. And the purity of the quality of the product can be great. In fact, some of the motivation of our commercial agreements was an element of the sustainability in Green capability that people could use when they're translating, communicating with their consumers about how their products are ultimately processed. So, we like ethanol a lot. The percent exactly on the question you speak I would have to refer to our production head.
Chris Damas -- BCMI Research -- Analyst
Well, thank you very much. I certainly enjoy seeing that facility.
Jim Hamilton -- President and Chief Executive Officer
Well, there's a great video online if you want to check it out, it's about 60 -- 90 seconds and it walks through the plant and you'll get a feel for the technology that is there. And we're very excited to be turning on an element of that computer process control fully automated operation. I think we haven't talked about this much but I think there is a tremendous demand profile in -- not only for marijuana but hemp in Canada and export markets in future. But we also believe that this already constructed capability is probably the low cost facility in the country, and we think that is a great advantage over the long-term depending on how markets develop. So we're happy about this from a -- clearly an offensive standpoint and we're very, very reassured by that long-term in terms of his cost profile for future.
Chris Damas -- BCMI Research -- Analyst
And that was $15 million to run the place for 200,000 kilograms of biomass process that comes out the (inaudible) a gram. Is that correct?
Mario Paradis -- Chief Financial Officer
Yeah, that's correct.
Chris Damas -- BCMI Research -- Analyst
Okay. Great. Thank you, gentlemen.
Jim Hamilton -- President and Chief Executive Officer
Thank you.
Mario Paradis -- Chief Financial Officer
Thank you.
Operator
And your next question will come from Chen Lin of Lin Asset Management. Please go ahead. Your line is open.
Chen Lin -- Lin Asset Management -- Analyst
Yeah, thank you. I have another question just concerning the margin -- profit margin. What is the ongoing rate right now with MediPharm your other competitor, how much they charge for the margin, basically how much they take marijuana extraction and what the spread they're charging?
Jim Hamilton -- President and Chief Executive Officer
That's a great question. But you probably have to ask them.
Chen Lin -- Lin Asset Management -- Analyst
Okay. All right. So what's -- when you're talking to your customer, what's like in general the market not -- the market going rate with those extractions?
Jim Hamilton -- President and Chief Executive Officer
Yeah. I would -- yeah, look, it's -- we don't really want to comment on that per se, because it's not really helpful for our business with customers going forward. But I think one can read in various analyst reports, what their expectation is for pricing and it's probably not a bad estimate in our experience. And I think it's important to look at those estimates that are published by the experts and maybe compare them to some of the numbers that Mario just shared in terms of what our fixed costs are on our site is and one could probably have a fairly good view on the operation. That would be my advice.
Chen Lin -- Lin Asset Management -- Analyst
Okay, great. Thank you.
Operator
We have no further questions at this time. Mr. Jim Hamilton, you may begin with your closing remarks.
Jim Hamilton -- President and Chief Executive Officer
Well, yeah, thank you. And -- well, first of all, it was great having Martin Landry here. And Martin, we look forward to your engagement with the business. And I welcome all the investors that would like -- that call me and call Mario to also feel free to call Martin and Martin will be on the road with us and on his own and talking to people. He'll also be helping us with, not only his deep, deep network of contacts in the business, but help us shape also the future moves for our business in terms of how we move forward with further relationships, collaborations, acquisitions, et cetera, and it's just great having somebody with such deep experience on-board.
I'd also like to acknowledge John Moretz, who has been strangely quiet.
John Moretz -- Chairman
I hadn't had any chance to say anything. All the wonderful news is that you and Mario have been stating, but I just wanted to say, being with Neptune for five years is, first as a shareholder and then on the Board, seen it through a lot of twists and turns as many of you have experienced. Today, I've never been more pleased or static to encourage for where the Company is, not only that I'm involved with and not only that I'm invested with that one that I've followed through the years. We're in a position now of -- at the brink of just getting started. And the opportunity to what we have is really unparalleled by any company that I've ever invested in much less been a part of.
And I'm very pleased to state to all of you shareholders and analysts out there that, just as the quality of our GMP facility is in the scale and the efficiency that that can drive, these results and what's coming up in the near future for us all, is a result of our management team, the leadership, the dedication and that has been so strengthened through the years and Jim and the team have brought in some additional great power like Martin, Graham and others that have come in to and Patti have come into the Company along with the current staff that we have. And so, as they always say, you got to have the right people on the bus, and we really do that now. And I think all of us have a lot to look forward to, and some unparalleled success is what we're planning for. And I will thank Jim, you and the team for that.
Jim Hamilton -- President and Chief Executive Officer
Well, John, thank you, who is not only as our Chairman, but one of our largest investors and we appreciate that. So, with all that said, thank you, everybody, for listening. Again, we welcome your questions as we go through the days and the weeks and the months to come. We'll look forward to talking to everybody formally again in August. And I believe Mario, it's August 13 that will be -- in the mid-August, we'll do our AGM and we'll also have the first quarter results and at that time, John I think will have some more visibility on SugarLeaf and other business things.
John Moretz -- Chairman
Absolutely.
Jim Hamilton -- President and Chief Executive Officer
So, thank you, everyone, for listening and thank you for support, and we'll look forward to talking to you all soon. Bye-bye.
Operator
And this concludes today's conference call. You may now disconnect.
Duration: 53 minutes
Call participants:
Mario Paradis -- Chief Financial Officer
Jim Hamilton -- President and Chief Executive Officer
John Moretz -- Chairman
Ryan Macdonell -- GMP Securities -- Analyst
Siew Ching Yeo -- Echelon Wealth Partners -- Analyst
Chen Lin -- Lin Asset Management -- Analyst
Chris Damas -- BCMI Research -- Analyst
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