OTTAWA, April 19, 2018 /CNW/ - Burnstown Farms Cannabis Company Ltd. is pleased to announce the start of a private placement round to raise up to $2,880,000 through the sale of 24,000,000 common shares at a price of $0.12 per share.
The proceeds of this capital raise are intended to be used to purchase a 225-acre property in the heart of the Ottawa Valley, Ontario. This area is renowned for its rich agricultural land and has a long history of agricultural production. The location, environmental conditions, day length and abundant supply of spring-fed irrigation water, electrical power and natural gas nearby make this an ideal cultivation site. The capital raised will also be used for pre-construction planning, submitting a license application to Health Canada, and for general working capital until phase one construction begins.
At full capacity the property is expected to produce an estimated 52,000kg of dried cannabis, from 60 acres of outdoor cultivation space and 5 acres of hybrid greenhouse. Regenerative organic cultivation techniques will be used on the outdoor crops and will ensure minimal environmental impact while producing high quality, terpene rich cannabis for extraction. Cannabis grown in the hybrid greenhouse will supply the underserved high quality organic dried cannabis market. All products will be sold wholesale through partners and provincial distributors for medical and recreational retail sale. The outdoor cost per gram will be a fraction of indoor and greenhouse production costs. With regulations in the process of changing to allow for a variety of cannabis derivative products, bulk organic cannabis oils will be in high demand.
The passionate team has an unprecedented cumulative 100+ years of cultivation experience and 25+ years' of ACMPR experience in R&D, cultivation, and extraction of cannabis on a large commercial scale. The board has extensive experience with licensing, designing, and outfitting dozens of cannabis facilities in Canada and has worked with many of the currently licensed producers. The advisory board consists of industry experts in the financial, business and regenerative outdoor agriculture fields. The R&D department will initially focus on importing and developing genetics that are well suited for outdoor production and on optimizing organic crop nutrition for yields and pest and disease resistance.
While current ACMPR regulations do not permit outdoor production, the "Proposed Approach to the Regulation of Cannabis" document produced by Health Canada proposed regulatory changes to permit outdoor production. The reported results of consultations on this proposal reflected a majority of support for outdoor production, and Health Canada has stated that it is considering specifics for the final regulations. The Task Force on Cannabis Legalization and Regulation also recommended the inclusion of outdoor growing to reduce the environmental impact of the industry. In the unlikely event outdoor cultivation is not initially permitted, the company's efforts will focus on greenhouse cannabis production.
"We are excited to begin a new chapter in Canada's commercial cannabis industry. Our passion for high quality cannabis and derivatives, coupled with our extensive experience and our respect for the environment will produce exceptional products and lead the way in environmentally responsible production. We are attracting top talent from all over North America to ensure our ongoing success, vibrancy and positive corporate culture," said Mark Spear, founder and CEO of Burnstown Farms.
About Burnstown Farms Cannabis Company Ltd.
Burnstown Farms is a cannabis company in the heart of the Ottawa Valley. It is at the pre-license stage and will submit a license application to Health Canada under the ACMPR after the property acquisition. It will be a leader in low cost, high quality organic cannabis oil production for the Canadian and global markets. Production is anticipated to start in Q4 2019.
SOURCE Burnstown Farms Cannabis Company Ltd
For further information: Mark Spear, [email protected]