Non-Dilutive Financing Will Support Capacity Scale-Up and Marketing,
Following Successful Domestic Harvests
TORONTO, June 2, 2015 /CNW/ - Bedrocan Cannabis Corp. (TSXV: BED) (the "Company") is pleased to announce that it has finalized a term loan (the "Loan") of $2 million from a significant shareholder and director of the Company. The Loan, secured by the company's assets, matures on June 1, 2016 and carries an annual interest of 10% compounded monthly with no penalty for early repayment.
It is expected that the proceeds from the Loan will be used to support the Company's operations related to production capacity scale-up and the associated increase in sales and marketing activities following its first two domestic harvests. The Company's fully-functional new manufacturing facility is currently operating at approximately 2,000 kg/year, after the recent approval of 18 of a total of 34 production rooms by Health Canada. The Company expects to expand to 4,000 kg/year upon Health Canada approval of the entire facility.
"The Loan provides us with additional non-dilutive working capital to support our domestic capacity expansion and expanded marketing activities. We look forward to being able to supply more product to our expanding patient base," said Marc Wayne, President and CEO of Bedrocan.
The Company also reported that its first two domestic harvests, for its Bediol and Bedrocan strains, were successful. "We are delivering our domestic harvests on schedule and with yields as predicted," said Mr. Wayne. "This is an important validation of the production processes and advanced automation technology at our new facility, and we anticipate first domestic shipments to customers later this month, once the harvested product approved for sale by Health Canada."
Bedrocan and Bedrocan BV are focused on medicinal cannabis research and product innovation, and have been producing and supplying government-regulated medicinal cannabis for 13 years. Bedrocan's strains of pharmaceutical-grade cannabis have been used by more than 20,000 patients in seven countries, including Canada. The Company is committed to clinical research with ISO 9001-rated production processes and product development, on an international scale. Bedrocan is one of only two companies currently supplying pharmaceutical-grade medicinal cannabis in Canada. Bedrocan Cannabis Corp. trades on the TSX Venture Exchange under the symbol "BED". www.bedrocan.ca
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.
Forward Looking Statements
This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the use of proceeds from the Loan. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Readers are cautioned not to put undue reliance on these forward looking statements. This news release contains information obtained by the Company from third parties, including but not limited to market data. The Company believes such information to be accurate but has not independently verified such information. To the extent such information was obtained from third party sources, there is a risk that the assumptions made and conclusions drawn by the Company based on such representations are not accurate.
SOURCE Bedrocan Cannabis Corp.
For further information: Cam Battley, VP Communications and Corporate Development, Bedrocan Cannabis Corp., [email protected], +1.905.864.5525, www.bedrocan.ca