Tweed Provides Update On Demand And Intensified Construction Program
OTTAWA, April 21, 2014 /CNW/ - Tweed Marijuana Inc. (TSXV: TWD) is pleased to update that forecast demand for medical marijuana from its wholly owned subsidiary Tweed Inc. ("Tweed") is greater than initial company forecasts, based on registration and application information to date. Particularly, data from registrations predict a potentially greater demand than the Company had initially projected. Although there is no guarantee that medical marijuana demand based on registrations to date will necessarily translate into increased realized demand in the form of customer orders, Tweed will be intensifying its construction and production program to bring forward capacity not originally anticipated until the end of 2015. This will require an increase in capital expenditures and construction related expenses.
In addition to Tweed's core production rooms including the mother room, vegetative room, seed room, and drying room, Tweed has 3 operational grow rooms in place, where cannabis plants are sent to flower and become medicine. Each grow room is anticipated to generate approximately 500,000 grams of medical marijuana annually. Under Tweed's intensified construction plan, a further 3 rooms with similar production capacity are expected to be in place by August 31st, 2014, with a further 6 rooms in place by December 31st, 2014.
With the intensification of its construction schedule, Tweed will move from a currently anticipated annual maximum production capacity of 1.5 million grams per year to 6 million grams per year by the end of 2014. Tweed has a maximum of 15 million grams of annual production permitted by Health Canada within the currently approved structure. Production lags production capacity as the plants require between eight and twelve weeks of flowering time in the growing rooms. The time variation in the growing rooms is related primarily to the strains under production. With 25 strains currently in production, and an additional 60 strains to initiate, Tweed believes that it will offer an industry leading selection for the market by the end of 2014.
In the immediate term, Tweed is appreciative of the number of applications that have been received from patients looking to Tweed to be their trusted supplier of quality medical marijuana and expects to ship its first order on April 24th, 2014. In order to ensure sufficient supply to continue to serve its existing customers, Tweed will be prioritizing access to medical marijuana to customers who have already been registered or have submitted an application to Tweed prior to April 21st. While Tweed will continue to accept new applications, we will not proceed to register new customers until we can be certain that we have sufficient supply to meet demand. Tweed will ensure that all customers waiting to be registered are aware of their status and will work hard to keep existing and prospective customers informed as we move forward to build capacity and make new strains and supply available to our customers.
In order to continue to drive medium term demand in the sector, Tweed has commenced educational programs and hired initial staff to liaise with the medical community in order to bridge the information and research gap in order to facilitate the acceptance of medical marijuana as a treatment under appropriate circumstances and for relevant indications.
About Tweed Marijuana Inc.
Tweed Marijuana Inc. is a TSX Venture Exchange listed company. Its wholly owned subsidiary, Tweed, is a licensed producer of medical marijuana in Canada. The principal activities of Tweed are the production and sale of marijuana out of its facility in Smiths Falls, Ontario as regulated by the Marihuana for Medical Purposes Regulations.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice regarding Forward Looking Statements
This news release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Tweed Marijuana Inc. or Tweed Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include: (A) predictions of future demand; (B) plans to increase capital expenditure and construction related expenses; (C) anticipated production yields; (D) completion of construction and availability of new production rooms; and (E) forecasted available product selection. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability to obtain any necessary financing; the economy generally; the yield from Tweed's marijuana growing operations; consumer interest in products; competition; regulation and anticipated and unanticipated costs and delays. Although Tweed Marijuana Inc. has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect Tweed Marijuana Inc. or Tweed Inc. Additional factors are noted under "Part IV - Description of Risk Factors Associated with the Acquisition" in the Filing Statement of Tweed Marijuana Inc. dated as of March 25, 2014 and available at www.SEDAR.com. The forward-looking statements included in this news release are made as of the date of this news release and Tweed Marijuana Inc. does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
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