Freedom Cannabis announces acquisition of Boaz Pharma
Acquisition to boost Freedom's revenue and market share
EDMONTON, AB, Sept. 15, 2022 /CNW/ - Freedom Cannabis Inc., a Canadian producer of premier cannabis products, is pleased to announce it has signed a definitive agreement to acquire the assets of Calgary-based Boaz Pharmaceuticals Inc. (boazpharm.com). The details of the agreement were not disclosed.
With 126,000 square feet of cultivation and manufacturing space, the Boaz assets are expected to double the production capacity of Freedom's existing facility and provide entrance into cannabis 2.0 products. The Boaz assets consist primarily of 44 specially repurposed shipping containers equipped with new technologies to produce superior quality crops and higher yields. The containers provide opportunities for scalability and ease of installation and allow for expansion of new cannabis strains. Each container is expected to hold approximately 850 cannabis plants and yield approximately 40,000 grams.
- Expands production capacity: The containers are expected to double the production capacity of the existing facility.
- Lower production costs: The containers are outfitted with innovative technology which will increase yields and lower operating costs to contribute to cost efficiencies.
- Enhances branded product: Boaz has a series of cannabis 2.0 products which will be integrated and expanded upon to provide diversification in Freedom's product offering to retail consumers. In addition, Boaz has an extensive catalog of cannabis strains with the ability to supply those strains to customers.
- Shareholder value: The transaction will deliver additional EBITDA to shareholders through synergies and other strategic initiatives.
- Equity Investment: The principal shareholders of Boaz have committed to investing $1.8 million into Freedom Cannabis providing the Company additional working capital and demonstrating Boaz's commitment to Freedom Cannabis.
"This is an exciting step toward our vision of expanding the scale of our quality cannabis products, while contributing to overall shareholder value," explained Johnfrank Potestio, CEO of Freedom Cannabis. "Boaz has a demonstrated history of producing quality craft cannabis and will integrate seamlessly with our own products."
The acquisition will provide Freedom Cannabis with additional packaging equipment for the Company's fast-growing services division, additional growing capacity to meet the rising demand for retail products across Canada and secure a foothold into the cannabis 2.0 market.
Additionally, Freedom will acquire all inventory for Boaz and product SKUs currently offered throughout Canada, including in provinces currently not served by Freedom Cannabis, particularly in the Maritimes where Boaz has a strong market presence.
Freedom Cannabis will also be acquiring important intellectual property assets, including IP associated with Boaz's extracts division and K-Cup product which is a unique cannabis-infused coffee drink.
"This acquisition demonstrates our commitment to revenue growth and increasing shareholder value," explained Potestio. "Freedom Cannabis is quickly becoming one of the most well recognized and respected brands in the cannabis sector, and the acquisition of Boaz is another step in that direction."
Freedom is a leader in the cannabis industry with a focus on servicing the adult recreational market. Headquartered in Acheson, Alberta, Freedom is focused on changing lives and becoming a cult-like brand through growing quality cannabis. Driven by science and innovation, and with a focus on high quality cannabis products, Freedom continues to focus on meeting the needs of the adult cannabis recreational market.
This press release contains statements that constitute "forward-looking information" ("forward-looking information") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking information and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information. The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
On behalf of the Board of Directors
SOURCE Freedom Cannabis Inc.
Please contact: Johnfrank Potestio, CEO, Freedom Cannabis Inc., Email: [email protected], Cell: 780-498-1960
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