TORONTO, July 11, 2018 /CNW/ - Pure Global Cannabis Inc. (TSX.V:PURE) (the "Company" or "Pure Global) (formerly Royal Sapphire Corp TSX.V:RSL) is pleased to announce the commencement of trading in the Company's common shares on the TSX Venture Exchange ("TSXV") under the ticker symbol "PURE" effective at the open on July 11, 2018. This follows the closing of the amalgamation and reverse takeover transaction (the "Transaction") with PureSinse Inc. ("PureSinse"), as announced on July 10, 2018.
Pure Global is a growth-oriented life sciences cannabis company led by experienced pharma-industry, horticultural, and supply chain experts. The Company's wholly-owned subsidiary, PureSinse, is a licensed producer under the Access to Cannabis for Medical Purposes Regulations ("ACMPR") focused on producing premium-quality cannabis products for medical, wellness, and future legal adult recreational use. The Company is launching Canada's first multi-ponic cannabis farm – a patent-pending system that is expected to produce several fold greater yields over traditional methods while reducing cost and eliminating pesticide and herbicide use.
Strategically-Located Flagship Facility
Production activities will be undertaken at a strategic location in Brampton, Ontario, near Toronto Pearson International Airport. This location offers efficient access to both the Greater Toronto and Hamilton areas, as well as national and international distribution channels.
The initial site is an 18,000-square-foot facility, with a fully-funded option to expand to 41,000 square feet, that will soon be a hub for processing, production, research and development, and distribution. Utilizing modern commercial horticulture and hydroponic techniques, the Company is expecting to produce over 8,000 kilograms of premium-quality dried cannabis per year from this facility and will be looking to significantly expand production footprint and output in the near term.
Construction of Phase 1 at the Brampton facility has been ongoing for two years and is at an advanced stage.
Experienced Management and Advisory Team
"After building PureSinse privately over the past four years, I am excited and proud to bring the Pure Global story and team into the limelight of the public markets," commented Malay Panchal, founder of PureSinse and CEO and Director of Pure Global. "We are a purpose-oriented company dedicated to improving lives through access to reliable legal cannabis products while building enduring value for shareholders."
The Pure Global team includes seasoned pharma-industry experts, including Chairman Dr. Chandra Panchal, PhD, whose distinguished resume includes acting as Director for MaRS Innovation, as a senior scientist at John Labatt Ltd., and as Chairman, President and CEO at Procyon Biopharma Inc. The team also includes Nader Gheshlaghi, PhD, a world-renowned specialist in plant genetics and commercial-scale indoor and greenhouse horticulture, and Michael Lavergne, a sustainable supply chain and operations professional with 20 years of multinational experience in fast-moving consumer goods (FMCG) and retail.
Pure Global has also assembled an exceptional advisory board consisting of leading capital markets and industry experts who are actively assisting the Company with ongoing growth initiatives.
Pure Global has designed a unique multi-ponic growing system (patent pending) that combines the best practices of hydroponics, aquaponics, and aeroponics, with world-class commercial agriculture methodologies. This automated system will enable the Company to grow more plants in less time, without the use of herbicides or pesticides. Vertical farming techniques will also be employed to enable the growing of multiple tiers of canopy, exponentially increasing potential yield from the same square footage.
The Company is fully funded to rapidly advance its production and commercialization footprint.
PureSinse was issued a Cultivation Licence under the ACMPR in December 2017 and is expecting issuance of a Sales Licence under the ACMPR in Q3 2018.
The initial phase of construction at the Company's Brampton facility has been underway for some time and will be completed in Q3 2018. This phase includes vault storage built to Health Canada Level 9 standards for $32M in product; extraction, QA and microbiology labs; and order processing and packaging, shipping and receiving, security, IT, and administrative areas.
The Company's Phase 1 facility is equipped with GMP-standard clean rooms, which the Company will use to produce innovative and proprietary extraction formulations (cannabis concentrates) with low-cost wholesale flower purchased from farmers. This will facilitate a quicker path to revenue while Phase 2 of the build-out proceeds in parallel.
Phase 2 of the initial build is expected to be completed in late 2018 / early 2019 and will include the ramp-up of the Company's vertical farming cultivation to an expected capacity of 4,000 kilograms of premium-quality dried cannabis per year in 18,000 square feet. Phase 3, expected to be completed in Q1 2019, will involve expansion of cultivation operations to an expected capacity of 8,000 kilograms of premium-quality dried cannabis per year in 41,000 square feet. The Company will be continuously evaluating opportunities for additional expansion, both at the existing facility and beyond.
Early Warning Disclosure Pursuant to National Instrument 62-103
In connection with the Transaction, Malay Panchal acquired ownership, control or direction over securities of Pure Global requiring disclosure pursuant to the early warning requirements of applicable securities laws. Immediately prior to completion of the Transaction, Malay Panchal did not have ownership of, or exercise control or direction over, any voting or equity securities of Pure Global.
Pursuant to the Transaction, Malay Panchal acquired ownership of 25,441,809 common shares of Pure Global ("Pure Global Shares"), representing approximately 17.21% of the issued and outstanding Pure Global Shares. Such Pure Global Shares were received in exchange for Malay Panchal's common shares of PureSinse Inc. Certain of the Pure Global Shares are subject to escrow provisions. Pursuant to the Transaction, Malay Panchal also acquired 2,125,000 Pure Global share purchase warrants ("Warrants") and options ("Options") to purchase 2,000,000 Pure Global Shares at a price of $0.25 per Pure Global Share in exchange for an equivalent number of options and warrants of PureSinse Inc. previously held by Malay Panchal. If Malay Panchal were to exercise all Warrants and Options held (including the post-Transaction issuance of 500,000 Options at $0.33), he would obtain ownership and control over an additional 4,625,000 Pure Global Shares, which, when aggregated with the other Pure Global Shares indirectly owned or controlled by Malay Panchal, would total 29,566,809 Pure Global Shares representing approximately 19.72% of the issued and outstanding Pure Global Shares on a partially diluted basis (i.e. assuming the exercise of Malay Panchal's Options and Warrants only).
An early warning report will be filed in accordance with applicable securities laws on Pure Global's profile on SEDAR (www.sedar.com). A copy of such report may also be obtained by contacting Pure Global Investor Relations at [email protected].
This news release contains certain forward-looking statements, including, but not limited to, statements about Pure Global's future plans and intentions, and the listing of the Resulting Issuer Shares on the TSXV. Wherever possible, words such as "may", "will", "should", "could", "expect", "plan", "intend", "anticipate", "believe", "estimate", "predict" or "potential" or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Pure Global cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Pure Global assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Pure Global Cannabis Inc.
For further information: regarding Pure Global or the Transaction, please contact: Pure Global Cannabis Inc., Telephone: (647) 957-2266, E-mail: [email protected]