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."
About SugarBud
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.
http://www.sugarbud.ca/
About Adastra
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.
http://www.adastralabs.ca/
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.