SugarBud Announces Receipt of Cultivation, Processing and Medical Sales Licenses from Health Canada and Provides Operational ...
September 03 2019 - 9:38AM
SugarBud Craft Growers Corp. (TSXV: SUGR, SUGR.WT)
("
SugarBud" or
the "
Company") is pleased to announce that it
has received cultivation, processing and medical sales licenses
(the “
Licenses”) from Health Canada in respect to
“Phase 1A” of the Company’s fully constructed, state-of-the-art
29,800 square-foot vertical cannabis cultivation facility in
Stavely, Alberta.
Operating UpdateThe newly
licensed “Phase 1A” area of the Stavely facility includes two
dedicated flower rooms and all the necessary auxiliary rooms to
support an estimated annual cultivation design capacity of
approximately 3,300,000 – 3,890,000 grams per year at full scale
production. SugarBud will immediately commence cultivation and
expects to complete its initial two harvests in December 2019,
after which SugarBud intends to submit an application to Health
Canada to amend the Licenses to permit cultivation in the remaining
six flower rooms in Phase 1 of the facility. At full operational
levels, with four layers of flowering canopy, the estimated total
cultivation design capacity for Phase 1 is expected to be
approximately 13,230,000 – 15,565,000 grams per year. SugarBud
expects to begin construction on Phase 2 of the facility in 2020.
At full scale the facility is expected to occupy approximately
98,000 square-feet of floor space encompassing core production
activities such as cultivation, extraction, processing, genetic
breeding, research and development, product development, packaging
and distribution. Upon completion of Phase 2, SugarBud
estimates that the Stavely facility will have a total cultivation
design capacity of approximately 33,075,000 - 38,912,000 grams of
premium cannabis annually. Phase 1 is estimated to cost
approximately $22.2 million with four layers of flowering canopy.
Of this amount, approximately $11.7 million remains to be deployed
to complete Phase 1 of the facility. The Company must access
additional capital funding to complete Phase 1 through a
combination of debt, equity and convertible securities. The Company
will commence construction of Phase 2 when capital permits.Mr. John
Kondrosky, Chief Executive Officer of SugarBud, stated: “Receipt of
our Licenses from Health Canada is a pivotal milestone for the
Company and a major catalyst for our business. I would like to
personally thank each and every member of the SugarBud team,
including our consultants, for their diligence, effort and
commitment over the past year. It was a tremendous effort by
everyone involved. As a premium product provider, focused on
quality, product leadership and customer satisfaction, we believe
that the heart and soul of everything we do starts with what we
grow. We cannot wait to officially launch that mission and deliver
on that promise. I would like to take this opportunity to thank our
investors and shareholders for their ongoing support as we continue
to execute on our high-impact business plan.”
Corporate
UpdateSugarBud is pleased to announce the appointment of
Mr. Bradley K. Giblin CA, CFA as Vice President of Finance and
Chief Financial Officer of the Company effective September 9th,
2019. Mr. Giblin has more than 18 years of experience in
finance, business development, corporate strategy and accounting
roles. Mr. Giblin holds Chartered Professional Accountant (CPA CA)
and Chartered Financial Analyst (CFA) designations. Prior to
SugarBud, Mr. Giblin was Chief Financial Officer of Mount Bastion
Oil and Gas Corp., a high growth energy company that was acquired
by Surge Energy Inc. for $320 million, a 2x return on investment in
a two-year timeframe. Mr. Giblin also led a successful IPO of Maha
Energy Inc. on the First North Nasdaq market in Sweden, as well as
performing other high impact roles as Chief Financial Officer in
publicly traded, start-up companies. Mr. John Kondrosky stated:
"Brad brings tremendous experience and leadership to a critical
role for SugarBud and I am very pleased to welcome him to our
team.”SugarBud would like to announce that Mr. Craig Kolochuk,
co-founder, President and a Director of the Company, has for
personal reasons, stepped down as President and a Director
effective today. However, Mr. Kolochuk will continue to contribute
to the organization as a Special Advisor to the Company on matters
of business development, corporate strategy and mergers and
acquisitions. Mr. Kondrosky will assume the role of President in
the interim. “Craig has done a phenomenal job in his time at
SugarBud following the February 2018 recapitalization of the
Company overseeing the construction of the Stavely facility and
preparing SugarBud for licensing. I look forward to working closely
with Craig in his new capacity to advance SugarBud's vision and
mission as we enter a new and critical phase of our growth,” said
Mr. Kondrosky. Mr. Dan Wilson, Chairman of the Board of Directors
of SugarBud, stated: "The management team of SugarBud, led by Craig
Kolochuk, have been instrumental in positioning the Company to
receive its Licenses from Health Canada. SugarBud will continue to
benefit from Craig's experience in building high-growth, publicly
traded companies.”
About SugarBudSugarBud 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.
John Kondrosky Chief Executive Officer SugarBud
Craft Growers Corp. Phone: (604) 499-7847 E-mail:
johnk@sugarbud.ca |
Dan Wilson Interim Chief Financial Officer
SugarBud Craft Growers Corp. Phone: (403) 874-9862 E-mail:
danw@sugarbud.ca |
Investor Relations Contact Gary Perkins,
President Tekkfund Capital Corp. Tel: (416) 882-0020
E-mail: garyperkins@rogers.comWebsite:
http://www.sugarbud.ca/Address: Suite 620, 634 -
6th Avenue S.W., Calgary, Alberta T2P 0S4 Telephone: 403-532-4466
Fax: 587-955-9668
Forward Looking and Cautionary
Statements This news release contains forward-looking
statements. More particularly, and without limitation, this news
release contains statements concerning: the Company’s assessment of
future plans and operations; cannabis cultivation in the Company’s
newly licensed "Phase 1A" area; the expected submission of a
license amendment application; construction of additional flower
rooms and the scale thereof; cost of construction and sources and
availability of funds; estimates regarding cannabis crop
capacity, yield and frequency in respect of the initial phase of
the facility and subsequent phases; product quality; cultivation
equipment and technologies, including vertical growing; management
changes; and operating efficiencies. 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 the Company.
Forward-looking statements are subject to a wide range of risks and
uncertainties, and although the Company 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 products may be lower than anticipated; 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 the Company with securities
regulatory authorities. Please refer to the Company’s annual
information form (“AIF”) for the year ended December 31, 2017 and
management’s discussion and analysis (“MD&A”) for the three and
six months ended June 30, 2019 for additional risk factors relating
to the Company. The AIF and MD&A can be accessed under the
Company’s profile on www.sedar.com. This news release contains
future-oriented financial information and financial outlook
information (collectively, “FOFI”) about SugarBud’s prospective
results of operations, future cannabis production capacity, yield
and operating efficiencies, all of which are subject to the same
assumptions, risk factors, limitations, and qualifications as set
forth in the above paragraphs. FOFI contained in this document was
approved by management as of the date of this document and was
provided for the purpose of providing further information about
SugarBud’s future business operations. SugarBud disclaims any
intention or obligation to update or revise any FOFI contained in
this document, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this document
should not be used for purposes other than for which it is
disclosed herein.Except as required by applicable laws, the Company
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.
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