CALGARY, Sept. 16, 2019 /CNW/ - SugarBud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) ("SugarBud") is pleased to announce that it has entered into an agreement with Adastra Labs Holding Ltd. ("Adastra") to supply dried flower and trim for use in extraction.
Under the terms of the agreement, SugarBud will supply Adastra with a minimum of 900,000 grams of premium dried cannabis flower and trim over a period of nine months beginning March 1st, 2020, subject to licensing and regulatory approvals.
"As an early stage, federally licensed producer of premium cannabis, we are excited to move forward with this partnership with Adastra. We believe that there is strength to be found through collaboration and this initial partnership with Adastra speaks volumes to our commitment to quality and industry confidence in our ability to execute" said, John Kondrosky, CEO of SugarBud.
SugarBud received its cultivation license on August 30th and expects to complete the first harvest in each of its two licensed grow rooms in late Q4 of this year.
Andy Hale, CEO of Adastra stated, "When it comes to extractions, the quality of the input material is paramount. Our partnership with SugarBud will provide us with high-quality cannabis that will be used to create premium extract products. This agreement represents a major milestone for Adastra as we enter the Canadian cannabis industry. We look forward to collaborating with the SugarBud team."
SugarBud is a federally licensed Alberta-based publicly traded cannabis company focused on the cultivation and production of high-quality premium cannabis, and product leadership through the development, production and distribution of value-added cannabis products in Canada.
In Canada, Adastra (through its wholly owned subsidiaries, Adastra Labs Inc. and Chemia Analytics Inc.) is in the application process to become a Standard Processor and Analytical Testing Laboratory under the Cannabis Act administered by Health Canada, with licenses to produce cannabis extracts and provide third party analytical testing services. These licenses will further enable Adastra and its subsidiaries to produce, package, sell (wholesale), and export medically focused and recreational cannabis extract and concentrate products in Canada to other licensed entities and internationally in jurisdictions where medical cannabis extraction products are legal.
Adastra's operations include a facility in British Columbia, Canada. Adastra is developing its 13,035 square feet facility to be fully devoted to standard processing and laboratory testing by late 2019, from which it expects to produce significant amounts of cannabis oil and/or hemp oil for the Canadian wholesale medical and recreational markets.
Adastra will offer a suite of unique products under several existing consumer-focused brands, including tinctures, medicinal oils, concentrates, and when legalized, gel capsules and vaporizer pens. Through acquisition of existing cannabis extraction brands and careful development of its new brands, Adastra will be positioned to be a leader in branded, commercialized products in both the medical and adult-use markets across North America and internationally.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning: SugarBud's assessment of future plans and operations; cannabis cultivation in SugarBud's newly licensed grow rooms; estimates regarding cannabis crop capacity, yield and frequency in respect of the initial phase of the facility; product quality; the supply agreement and partnership with Adastra; the timing of obtaining necessary approvals required to conduct the contemplated business of the supply agreement; production and processing capacity of various facilities; expansion of facilities; and legalization of broader spectrum cannabis products. When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by SugarBud. Forward-looking statements are subject to a wide range of risks and uncertainties, and although SugarBud believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: currently contemplated expansion and development plans may cease or otherwise change; production of cannabis may be lower than expected, SugarBud may not obtain the required approvals from Health Canada, demand for SugarBud's and Adastra's products may be lower than anticipated; results of production and sale activities; results of scientific research; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; risks inherent in the agricultural business, such as insects, plant diseases and similar agricultural risks which can have a significant impact on the size and quality of the harvest of cannabis crops; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by SugarBud with securities regulatory authorities. Please refer to SugarBud's most recent annual information form and management's discussion and analysis for additional risk factors relating to SugarBud, which can be accessed under SugarBud's profile on www.sedar.com.
Except as required by applicable laws, SugarBud does not undertake any obligation to publicly update or revise any forward-looking statements.
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 SugarBud Craft Growers Corp.
For further information: John Kondrosky, Chief Executive Officer, SugarBud Craft Growers Corp., Phone: (604) 499-7847 E-mail: [email protected]; Brad Giblin, Chief Financial Officer, SugarBud Craft Growers Corp. Phone: (403) 930-8507, E-mail: [email protected]; Investor Relations Contact: Gary Perkins, President, Tekkfund Capital Corp., Tel: (416) 882-0020, E-mail: [email protected]; Website: http://www.sugarbud.ca/; Address: Suite 620, 634 - 6th Avenue S.W., Calgary, Alberta T2P 0S4, Telephone: 403-532-4466, Fax: 587-955-9668