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The Canadian cannabis company increases its footprint in Charlottetown, PEI with facility expansion
TORONTO, Nov. 7, 2019 /CNW/ - Figr Brands, Inc. (Figr), a vertically integrated legal cannabis company, is increasing its footprint on Prince Edward Island (PEI) after receiving Health Canada approval to operate within an additional 210,000 square feet of its facility, bringing the current operational footprint up to 234,000 square feet. The amendment for this phase of the company's expansion project was approved on November 6, 2019, and included approval for 46,000 square feet for processing and other activities and 164,000 square feet for growing.
"We're excited to receive our amendment approval from Health Canada and begin using the square footage added through phase one of our expansion project," said Harvey Carroll, President of Figr. "We have been preparing for the approval of this amendment through the acceleration of our tissue culture program and began operating in the new square footage today. We expect the new run rate to be up to 28,000 kilograms per year.
"The added capacity will enhance our ability to supply product as we grow our presence across the Canadian marketplace," added Carroll.
As a result of the additional square footage coming online, Figr will be able to expand production of its pre-existing product lines -- pre-rolls, flowers, and oils -- as well as launch new products to meet consumer demand.
The second and final phase of the Figr Prince Edward Island expansion is near completion, and upon receiving a separate license amendment, the facility's run rate is anticipated to increase to more than 43,000 kilograms annually and its footprint will total 332,000 square feet, including 10,000 square feet of processing/other space and 88,000 square feet of growing space.
The expansion and investment in the facility will also create new jobs in Charlottetown, as the local operations are expected to grow from 75 to nearly 200 employees.
An official ribbon cutting ceremony will be held upon finalization of the full expansion.
About Figr Brands, Inc.
Figr is a vertically integrated legal cannabis company headquartered in Toronto, Ontario, that operates under one sole purpose: to put character into everything it does. Figr cannabis is sourced from the company's two licensed subsidiaries located in Charlottetown, Prince Edward Island, and Simcoe, Ontario. Figr is a wholly owned indirect subsidiary of Pyxus International, Inc. (NYSE: PYX). For more information, visit www.figr.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to the ability of Figr to immediately utilize the additional 165,000 square feet of its facility, the expected increase to the run rate of 28,000 kilograms annually, the expected completion of the second phase of the production facility expansion including the anticipated total footprint of 330,200 square feet, the receipt of an additional license amendment from Health Canada for such second phase of the production facility expansion and the expected run rate of more than 43,000 kilograms annually following the completion of the second phase of the production facility expansion and the receipt of an additional license amendment from Health Canada. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability of Figr to implement its business strategies; market demand; the ability to obtain all necessary regulatory licenses, permits and approvals on a timely and cost efficient basis; competition; crop failure; currency and interest rate fluctuations; assumptions concerning labour, construction, and other costs; uncertainties with respect to the timing and outcome of any construction projects; cultivation and the availability of required equipment for such activities; labour disputes; rising energy costs; and other risks. Although Figr has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described herein, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Readers are cautioned that the foregoing list is not exhaustive and readers should not place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
The forward-looking statements included in this news release are made as of the date of this news release and Figr does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
SOURCE Figr Brands, Inc.
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