Auxly Cannabis Group Inc. (TSX.V - XLY)
("
Auxly" or the "
Company"),
together with its wholly owned subsidiary Robinsons Cannabis Inc.
(“
Robinsons”), is thrilled to announce Robinsons
Outdoor Grow (“
Robinsons OG”), a large scale, high
quality outdoor cultivation project located in the heart of Nova
Scotia’s award-winning wine region of Annapolis Valley.
Robinsons OG is uniquely located in a region
that is ideal for outdoor cannabis cultivation given its diverse
soil types and microclimates; the same soil on which the Acadians
grew hemp over 250 years ago. Located within 25 kilometers of
Robinsons’ 27,700 square foot indoor facility, Robinsons OG is
comprised of over 158 acres of land in Hortonville, Nova Scotia and
offers road frontage and highway access, allowing for the potential
future development of tourism and point of sale opportunities.
Under the leadership of cannabis industry
veteran Andrew Robinson, Robinsons OG will use a range of
proprietary genetics with a track record of success in this climate
and apply several outdoor growing techniques commonly used in the
fruit crop production and wine industries.
The Robinsons OG project is of significant
strategic value to Auxly, as it provides access to high-quality,
sun grown cannabis flower for environmentally conscious consumers
and a large amount of organic biomass at lower capital and
operational costs and a lower carbon footprint relative to
conventional indoor or greenhouse cultivation. The long-term,
stable supply of outdoor cannabis produced on site at Robinsons OG
will help support the product development initiatives at Dosecann
Inc., the Company’s wholly owned 52,000 square foot facility
located in nearby Charlottetown, Prince Edward Island. A
substantial portion of the cannabis produced at Robinsons OG will
be used to create premium, terroir-driven Robinsons-branded
derivative cannabis products, with the same commitment to quality
and craftsmanship as Robinsons’ dried flower.
Robinsons OG expects to submit its application
and evidence of readiness to obtain a cultivation licence under the
Cannabis Act from Health Canada in Q1 2020. The Company
expects the capital expenditure for the buildout of Robinsons OG to
be up to approximately $15 million (of which approximately $6
million has already been funded, with the remainder expected to be
contributed through the first half of 2020), with expected yield of
approximately 200 kilograms per acre. Robinsons OG expects to plant
approximately 20 acres in the 2020 season and responsibly scale
operations in the following years.
Hugo Alves, CEO of Auxly, commented: “We are
thrilled to announce our Robinsons OG project. As you know, we are
very excited to introduce Andrew's incredible dried cannabis flower
to discerning Canadian consumers and Robinsons OG provides us with
the perfect platform from which to expand our Robinsons branded
product offering. Under Andrew’s supervision, Robinsons OG will
give us the ability to grow a broader range of Robinsons' genetics,
using Robinsons' cultivation methodologies, and take advantage of
the unique terroir of the Annapolis Valley to bring Canadian
consumers Robinsons branded cannabis products, all produced with an
unwavering commitment to quality and craftsmanship.”
Andrew Robinson, President and Founder of
Robinsons, commented: “We are excited to have successfully secured
over 158 acres of prime, fertile land, with a collection of
features highly sought after in the flourishing local wine
industry. The Robinsons OG site is located in one of the most
picturesque areas in Annapolis Valley, conveniently close to our
Kentville facility. It has a unique microclimate inspired by
the tidal Gaspereau River, gentle southern sloping hills that
provide maximum sun exposure and terroir influence from the
Acadian, Wolfville, and Hortonville soils. We are excited to add
Robinsons OG to the Robinsons portfolio, and look forward to
providing our superior outdoor cannabis to support Dosecann with
high-quality cannabinoids and serve the environmentally conscious
market seeking outdoor grown cannabis.”
ON BEHALF OF THE BOARD
“Hugo Alves" 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
Statements:
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: the proposed operation of Robinsons OG; the timeline for the
funding and licensing of the Robinsons OG project; expectations of
future growing capability at the Robinsons OG project and the
projected costs associated with the project; the proposed operation
of the Dosecann facility; consumer preferences; 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: Robinsons OG is able to
obtain and maintain all necessary governmental and regulatory
authorizations and permits to conduct business; Robinsons OG is
able to successfully cultivate and harvest outdoor cannabis crops
in Nova Scotia at the anticipated cost and yield; and general
economic, financial market, legislative, regulatory, competitive
and political conditions in which the Company operates 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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