CALGARY, Sept. 4, 2019 /CNW/ - Infused Products International Ltd. (IPI) is pleased to announce that its subsidiary, Cedar Holdings SVG, has been awarded one of the first-ever licenses in the Caribbean nation of St. Vincent and the Grenadines to cultivate, process and export cannabis-derived products. The country's parliament laid the groundwork for this promising new sector last year with the passage of the Medicinal Cannabis Industry Act.
"This is one of the most desirable licenses in the burgeoning global cannabis industry," said IPI's Chief Executive Officer Angus Taylor. "We've worked well with the regulator in St. Vincent and have gained access to one of the first permits for legal, regulated cannabis production in the Caribbean. This provides us the ability to not only grow, but process, sell and export certifiable cannabis ingredients for use in finished medicinal products to international markets."
Cedar Holdings SVG is wholly owned by IPI, a Canadian-based company headquartered in Calgary, Alberta, focused on the production and distribution of pharmaceutical-grade ingredients from the cannabis plant. IPI's leadership team has a proven record in the cannabis industry and is headed by Angus Taylor, one of the co-founders of Canada's most successful retail cannabis brands, NewLeaf Cannabis. Mr. Taylor was instrumental growing NewLeaf from a startup with four staff to a major Canadian cannabis brand with more than 300 employees; ultimately positioning NewLeaf for sale to a public company for net proceeds of CAD$32 million.
"The depth of experience of our management team, including Angus Taylor's demonstrated ability to create value for investors, sets IPI apart from other operators in this space," said founding partner and Chief Operating Officer, Craig Stenhouse. "There are very few individuals like Angus who have successfully navigated a start-up through to a large-scale exit in the cannabis industry, and we intend to apply that expertise to our operations in St. Vincent."
IPI expects to gain a competitive advantage from operating in an equatorial country with a 12-month outdoor growing season, where it has secured an outstanding site for its certified pharma-grade extraction lab and an additional 150,000 square feet of cultivation space. The tropical Caribbean climate eliminates the need for prohibitive capital expenditures on complex indoor growing systems required in more northern growing regions; lowering IPI's production costs. The company is also working to develop mutually advantageous partnerships across the country that will create positive benefits for Vincentians.
"Our government has taken a very thoughtful approach to legalizing medicinal cannabis production and export and I believe this has created an attractive environment for business investment," stated St. Vincent and the Grenadines Minister of Agriculture, Forestry, Fisheries, Rural Transformation, Industry, and Labor, Saboto Caesar. "We are excited that companies like IPI, with proven credibility in the cannabis industry, have chosen our island nation to invest in. We expect that their future success will result in positive social and economic impacts for our people."
The awarding of this license in St. Vincent and the Grenadines builds on a preliminary research license granted to the company in February 2019, which permitted Cedar Holdings SVG to collaborate with local government Ministries to cultivate cannabis for research and development purposes. Since February of this year, IPI has been working with the local Bureau of Standards and Cannabis Research and Development Unit within Minister Caesar's portfolio to advance some of the initial infrastructure that will be required for its commercial operations.
Today's announcement marks a significant milestone in advancing IPI's business plan to become a recognized leader in cannabis product innovation with international distribution capabilities. The company now has line of sight to supply certified medicinal cannabis products to a growing international market, including Europe and South America, which are on the cusp of entering the global cannabis economy. The world's legal cannabis market is forecast to grow to nearly USD$200 billion by 2025, with cannabis demand expected to outpace supply until then. With its commercial cannabis license in St. Vincent and the Grenadines secured, IPI will now focus on executing its business plan to achieve its revenue and growth targets.
In advancing its business plan, IPI is committed to creating shared value for both its investors and the local community. The company has been working rigorously over the past two years to build local relationships and establish itself as a first mover in the Caribbean. Much of this groundwork was conducted by founding partner and Vice President Caribbean, Alexis Charles, who was instrumental in establishing IPI's local presence in St. Vincent.
IPI is positioned to benefit from its collaborative approach with local farmers, land owners and with officials in the highest levels of government. IPI is the only company with a formal partnership with the Caribbean Agricultural Research and Development Institute (CARDI) in St. Vincent and the Grenadines. This relationship allows IPI to partner and collaborate with a regional scientific organization with the ultimate goal of renewing the local agricultural sector with passionate people, innovation and research.
This news release contains forward-looking information within the meaning of applicable securities laws relating to the cannabis industry and statements regarding future growth of IPI. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Corporation.