VANCOUVER, British Columbia, May 30, 2018 /CNW/ -- Lifestyle Delivery Systems Inc. (CSE: LDS), (OTCQX: LDSYF), (Frankfurt: LD6, WKN: A14XHT) ("LDS" or the "Company") announces that its affiliate, CSPA Group, Inc. ("CSPA"), has received a Letter of Intent (the "LOI") to purchase one thousand liters per month of extracted distillate from cannabis oil.
The distillate produced under the LOI will not be in direct competition with any of the CSPA's products, and will allow CSPA to gradually build up its production volume to the required one thousand liters per month.
In order to accommodate the production level required by the recent orders, the Adelanto facility is currently in the process of increasing its extraction capabilities to over 800 liters of extracted material per month. These equipment modifications are expected to be completed in the next three weeks. To accommodate the volume requirements anticipated under the LOI, the Company ordered additional equipment for installation within the Adelanto Facility. In addition to equipment modifications at the Adelanto facility, the Company plans to also expand the current square footage of the facility by approximately 2,400 sq. ft. CSPA Group intends to increase its production capability to over 3,000 liters of extracted material per month.
Brad Eckenweiler, the CEO of LDS, stated, "These equipment and facility modifications are required to fulfill current orders, as well as anticipated future orders for extracted cannabis material from licensed white label manufacturers and wholesale market distributors. This LOI at wholesale prices represents between six and seven million dollars in revenue per month for CSPA Group." The Company believes that it is uniquely positioned in the market to be a significant wholesale/white label provider. The Company has the necessary extraction expertise and, with increased production capabilities, will be able to supply those wholesale or white label customers that are not in direct competition with the Company. The Company will continue to update its shareholders on its progress as information becomes available.
About Lifestyle Delivery Systems Inc.
Lifestyle Delivery Systems Inc. is a licensed, state-compliant, vertically integrated cannabis-related company. From our isogenic pollination nursery to our cutting edge, state-of-the-art production facility located in Southern California, LDS has become one of the most diverse, innovative and scientifically based cannabis companies throughout North America. The Company's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to smoking but also a new way to accurately meter the dosage and assure the purity of the product. From start to finish, the production process tests for quality and composition of all the ingredients used in each and every strip, resulting in a delivery system that is safe, consistent and effective.
On behalf of the board of directors of Lifestyle Delivery Systems Inc.
The Canadian Securities Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, The Company undertakes no obligation to publicly update or revise forward-looking information.