Health Canada Also Approves 8 More Growing Rooms
Immediate Increase in Product Revenue
TORONTO, July 28, 2015 /CNW/ - Bedrocan Cannabis Corp. (TSXV: BED) ("the Company" or "Bedrocan") announced today that it has received a license amendment from Health Canada allowing for the sale of the Company's domestically produced medical cannabis. Bedrocan has been growing six proprietary genetic strains of standardized cannabis at its new production facility since February, and eight harvests have been completed successfully to date. The Company can begin immediately taking orders for sales of its existing inventory.
In addition, Health Canada has also approved eight more growing rooms at Bedrocan's production facility in the Greater Toronto Area. A total of 26 of 34 production rooms are now licensed, providing for production capacity of 3,000 kilograms per year.
"We are excited to be able to provide Canadian-grown, standardized cannabis to our registered patients," said Marc Wayne, President and CEO. "We have now transitioned our business successfully and on schedule from our reliance on imported Bedrocan product to managing our own domestic production to meet the specific needs of our growing population of medical cannabis patients. We will now focus on expanding our marketing, medical outreach and education initiatives, emphasizing the value and advantages of our standardized, pharmaceutical grade medical cannabis products."
With the new Health Canada approvals, sales of domestic inventory will result in an immediate increase in product related revenue. The Company was previously approved to import a maximum of 240 kilograms per year of product from its licensor Bedrocan Beheer BV, via the Dutch Ministry of Health. Bedrocan is now approved to produce and sell its Canadian-grown, genetically identical strains of medicinal cannabis, with production capacity equating to 3,000 kilograms per year.
Bedrocan Cannabis Corp. is focused on clinical research, technologically-advanced, automated production processes, and innovative product development. Bedrocan Canada and its licensor Bedrocan Beheer BV (Netherlands) are the only companies in the world currently capable of producing standardized full-bud, pharmaceutical-grade medicinal cannabis.
On June 24, 2015, Tweed Marijuana Inc. ("TMI") (TSXV: TWD), operator of licensed cannabis producers Tweed Inc. and Tweed Farms Inc., and Bedrocan Cannabis Corp. announced that the two companies have entered into a definitive arrangement agreement, pursuant to which TMI will acquire all of the issued and outstanding securities of Bedrocan Canada (the "Acquisition"). The transaction is currently expected to close by the end of August 2015, subject to Bedrocan Canada shareholder approval, court approval, and the approval of the TSX Venture Exchange, among other conditions precedent. Upon closing of the acquisition, Bedrocan Canada will become a subsidiary of TMI. For further information, please refer to the press release of the Company dated June 24, 2015 available on SEDAR at www.sedar.com.
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 proposed Acquisition, anticipated timing for the closing of the Acquisition, operations of the combined entity, the ability of the combined entity to expand and capture market share. 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. The closing of the proposed Acquisition is subject to a number of conditions, some of which are outside the control of the parties involved. If those closing conditions are not satisfied the transaction may not occur. The combined entity may not be able to achieve the market growth and success anticipated by the parties. For a description of the risks associated with the business conducted by TMI, please refer to TMI's final short-form prospectus dated March 10, 2015. The information circular delivered to shareholders of Bedrocan Canada will contain additional disclosure about TMI and the proposed Acquisition including the risk factors associated therewith. 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.
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