- $55 million raised in recent financings fuels growth strategy -
MONTRÉAL, Jan. 11, 2019 /CNW/ - Cannara Biotech Inc. ("Cannara" or the "Company"), a vertically integrated Cannabis company focused on cannabis derivative products, is pleased to announce that its common shares will begin trading on Monday, January 14, 2019 on the Canadian Securities Exchange ("CSE") under the symbol "LOVE".
"Since early 2017, we have been quietly assembling and advancing the necessary infrastructure to build Canada's premier cannabis company," said Zohar Krivorot, President and CEO of Cannara. "Today, with one of the largest indoor facilities in Canada and the largest in Quebec, we are well positioned to execute on a strategic plan including cultivation, product branding, derivative products and development of intellectual property. We are excited to begin our next phase as a public company and to continue our growth trajectory."
Since July 2018, the Company closed on two private financings for a total of approximately $55 million. The most recent private placement was completed at a price of $0.18 per subscription receipt for aggregate gross proceeds of approximately $37.4 million. The Company today has a strong balance sheet with a cash position in excess of $40 million (which includes funds being held in trust, pending the closing of the subscription receipt transaction upon listing).
In June 2018, Cannara completed the acquisition of a 625,000 sq. ft. indoor facility in Farnham, Quebec, located 45 minutes from downtown Montreal. Phase 1 construction of the facility, approximately 130,000 sq. ft., with a capacity of 15,000 kg of cannabis is well underway and expected to be completed in Q1 2019. The building has access to 15 megawatts of the lowest power rates in North America. Upon final completion of Phases 2 and 3, the multi-purpose facility will boast a peak capacity of more than 100,000 kg of cannabis, with broad production and processing capabilities for a range of cannabis infused products and therapies.
Cannara Brand Portfolio
Core to the Company's strategic vision, is a firm belief in the power of brands to inform and influence consumer decisions. As such, an initial portfolio of seven cannabis brands has been carefully crafted, including "Nativa" (premium Cannabis flower and vape cartridges), "Cannabar" (edibles), "Floragel" (oil and tinctures), "Gummyz" (confectionaries), "Earth Magic" (cosmeceutical), "Liquid CBD" (hydration beverages) and "PetLeaf" (animal health).
"Underpinning our public listing are two strong fundamentals, our healthy cash position which provides sufficient funding to execute on our business plan and provides us great flexibility in our business model moving forward," said Lennie Ryer, CFO. "And two, our one-of-kind facility in Quebec, which is already attracting significant interest from industry leaders to partner with us in a host of joint venture type relationships to develop cannabis infused products."
Additional information regarding the Company and its business can be found in the Company's long form prospectus dated December 14, 2018 and in its CSE listing statement dated January 9, 2019 both of which are available under the Company's profile on www.sedar.com.
About Cannara Biotech Inc.
Cannara Biotech is building the largest indoor cannabis cultivation facility in Quebec, a modern and secure 625,000 square foot facility located in Farnham, less than 45 minutes from downtown Montreal. Leveraging Quebec's low electricity costs, Cannara will produce high-grade indoor cannabis and derivative products for the Canadian and international markets. Working with partners from various industries, Cannara will generate licensing revenues, rental revenues and revenue streams from joint-venture arrangements leveraging this highly valuable property. For more information, visit our website: www.cannara.ca
ON BEHALF OF THE BOARD OF DIRECTORS
Zohar Krivorot CEO and Director
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding "Forward-Looking" Information
This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.