Auxly Enters Into a 300 Acre Hemp Cultivation and Purchase Agreement for the 2019 Cultivation Season
August 19 2019 - 7:30AM
Auxly Cannabis Group Inc. (TSX.V - XLY)
("
Auxly" or the "
Company") today
announced that it has entered into a hemp cultivation and purchase
agreement (the “
Agreement”) pursuant to which the
Company has agreed to act as the financial sponsor for the
development of a hemp farming co-operative consisting of six
individual hemp licence holders pursuant to the Cannabis Act
(collectively, the “
Hemp Farmers”) located in
Prince Edward Island.
To date, the Company has funded $4.5 million of
the approximately $6 million it will advance and the Hemp
Farmers have planted nearly 300 acres of hemp, which is expected to
result in approximately 100,000 kilograms of hemp
biomass. Pursuant to the Agreement, Auxly’s wholly owned
subsidiary, Dosecann Inc. (“Dosecann”), is
entitled to purchase all of the hemp cultivated by the Hemp Farmers
in 2019 at a preferential price relative to current wholesale
market rates; the funds advanced by Auxly toward the development of
the project will act as pre-payment for any future hemp purchases
by Dosecann. The Company expects the initial hemp harvesting to
commence later this fall, at which point the hemp will be tested,
milled and stored pursuant to Dosecann specifications prior to
delivery to Dosecann for extraction and manufacturing into final
finished products.
Hon. Bloyce Thompson, Minister of Agriculture
and Land for Prince Edward Island, commented: “We are incredibly
excited to have the finest farmers in Canada cultivating hemp at
home in PEI. I had the great opportunity of visiting the farm and
seeing first-hand the 300 acres that have been planted, and I’m
incredibly impressed by the technologies and advancements that the
Hemp Farmers bring to the Island.”
“We are very excited to partner with experienced
farmers in the province of PEI,” said Hugo Alves, President of
Auxly. “I’m proud of our Dosecann team for finding this opportunity
and being able to demonstrate our continued support for Atlantic
Canada. This project ensures our ability to meet the growing market
demand for wellness and adult-use cannabidiol (CBD)-based products,
and enhances our commitment to bringing innovative, branded
derivative cannabis products to Canadian consumers.”
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Auxly Cannabis Group Inc. (TSX.V:
XLY) (OTCQX: CBWTF)
Auxly is an international cannabis company
dedicated to bringing innovative, effective, and high-quality
cannabis products to the medical, wellness and adult-use markets.
Auxly's experienced team of industry first-movers and enterprising
visionaries has secured a diversified supply of raw cannabis,
strong clinical, scientific and operating capabilities and leading
product research and development infrastructure in order to create
trusted products and brands in an expanding global market.
Learn more at www.auxly.com and stay up to date at Twitter:
@AuxlyGroup; Instagram: @auxlygroup; Facebook:
@auxlygroup; LinkedIn: company/auxlygroup/.
Investor Relations:
For investor enquiries please contact our
Investor Relations Team: Email: IR@auxly.comPhone:
1.833.695.2414
Media Enquiries
(only):
For media enquiries or to set up an interview
please contact:Sarah Bain, VP External Affairs Email:
sarah@auxly.com Phone: 613.230.5869
Notice Regarding Forward Looking
Information:
This news release contains certain
"forward-looking information" within the meaning of applicable
Canadian securities law. Forward-looking information is frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed" and other similar words, or
information that certain events or conditions "may" or "will"
occur. This information is only a prediction. Various assumptions
were used in drawing the conclusions or making the projections
contained in the forward-looking information throughout this news
release. Forward-looking information includes, but is not limited
to: political change, future legislative and regulatory
developments involving cannabis and cannabis products; and
competition and other risks affecting the Company in particular and
the cannabis industry generally.
A number of factors could cause actual results
to differ materially from a conclusion, forecast or projection
contained in the forward-looking information in this release
including, but not limited to, whether: the Hemp Farmers are able
to maintain their cannabis licences; the Hemp Farmers are able to
successfully cultivate and harvest outdoor hemp crops in PEI; and
general economic, financial market, regulatory and political
conditions in which the Company and the Hemp Farmers operate will
remain the same. Additional risk factors are disclosed in the
revised annual information form of the Company for the financial
year ended December 31, 2017 dated May 24, 2018.
New factors emerge from time to time, and it is
not possible for management to predict all of those factors or to
assess in advance the impact of each such factor on the Company's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking information. The forward-looking
information in this release is based on information currently
available and what management believes are reasonable assumptions.
Forward-looking information speaks only to such assumptions as of
the date of this release. In addition, this release may contain
forward-looking information attributed to third party industry
sources, the accuracy of which has not been verified by the
Company. The purpose of forward-looking information is to provide
the reader with a description of management's expectations, and
such forward-looking information may not be appropriate for any
other purpose. Readers should not place undue reliance on
forward-looking information contained in this release.
The forward-looking information contained in
this release is expressly qualified by the foregoing cautionary
statements and is made as of the date of this release. Except as
may be required by applicable securities laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking information to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events, whether as a result of new information,
future events or results, or otherwise.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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