Sugarbud enters into Strategic Supply and Contract Manufacturing Agreement with Heritage Cannabis
October 15 2019 - 7:00AM
Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT)
("
Sugarbud") is pleased to announce that it has
entered into a strategic supply and contract manufacturing
agreement with Heritage Cannabis Holdings Corp. (CSE: CANN)
("
Heritage").
Under the terms of the agreement, Sugarbud will
supply Heritage with a minimum of 100,000 grams of premium dried
cannabis per month for an initial term of twenty four months
commencing May 1, 2020, and Heritage will provide extraction,
formulation and production services to Sugarbud for the development
of pre-filled vape cartridges, utilizing proprietary additive-free
formulations created by Sugarbud, all subject to customary
licensing and regulatory approvals.
”Our agreement with Heritage is the second major
supply agreement we have announced in the last month and together
with the previously announced supply agreement with Adastra Labs is
another exciting step forward for Sugarbud and our overall
commercial business plan,” stated Mr. Kondrosky, CEO of
Sugarbud.
With new and expanded cannabis regulations
coming into effect in Canada this October, Canadian consumers will
have access to a wider range of new cannabis derivative products
and formats. Sugarbud expects that high quality vape cartridges and
pens will become a significant catalyst for future growth.
"The supply and contract manufacturing agreement
with Heritage is a significant milestone for Sugarbud as we
continue to focus and execute against our overall product
leadership strategy in the inhalable cannabis category,” stated
John Kondrosky.
“We are confident that our partnership with
Heritage will equip Sugarbud to deliver high quality products with
safety and integrity as we prepare to introduce our proprietary
premium vape pen formulations to the Canadian adult-use
recreational and medical cannabis markets," Mr. Kondrosky
continued.
"We are pleased to have this agreement with
Sugarbud as they embark on their first grow of high-quality premium
cannabis. This allows us to work with them from the beginning to
align their grow and strains with what we know provides the best
results with our processes," stated Clint Sharples, CEO of
Heritage. "Sugarbud joins the group of Licenced Growers supplying
Heritage with high quality cannabis for our extraction needs. As
the market evolves, we believe quality will be the differentiating
factor for the end user."
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 Heritage
Heritage is a vertically integrated cannabis
provider. Heritage is a licensed producer of cannabis through its
subsidiaries Voyage Cannabis Corp. and CannaCure Corp. Heritage
provides extraction services through its subsidiary Purefarma
Solutions and cannabis based medical solutions through its
subsidiary BriteLife Sciences. Heritage is focused on advancing its
products and services to compete both domestically and
internationally.
http://www.heritagecann.com/
John Kondrosky Chief Executive
Officer Sugarbud Craft Growers Corp. Phone: (604) 499-7847
E-mail: johnk@sugarbud.ca
Investor Relations Contact Gary Perkins,
President Tekkfund Capital Corp. Tel: (416) 882-0020
E-mail: garyperkins@rogers.com
Website:
http://www.sugarbud.ca/
Address: Suite 620, 634 - 6th Avenue S.W.,
Calgary, Alberta T2P 0S4
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, operations and cannabis cultivation; product quality;
the supply agreement and partnership with Heritage; the timing of
obtaining necessary approvals required to conduct the contemplated
business of the supply agreement; future value-added cannabis
product offerings of the Company, including proprietary vape pen
formulations; legalization of broader spectrum cannabis products;
and participation in the market for such 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 Heritage'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; failure to maintain consumer brand
recognition and loyalty of customers; substantial and increasing
regulation and uncertainty related to the regulation and taxation
of vaporizer products; reliance on relationships with wholesalers
and retailers for distribution of products and failure to maintain
strategic business relationships; intense competition, including
from illicit sources; uncertainty and continued evolution of
markets; product liability litigation; the scientific community's
lack of information regarding the long-term health effects of
electronic cigarettes, vaporizers and e-liquids; reliance on
information technology; infringement on intellectual property;
failure to benefit from partnerships; sensitivity of end-customers
to increased sales taxes and economic conditions; failure to comply
with certain regulations; departure of key management personnel or
inability to attract and retain talent; risks associated with the
e-cigarette, vaporizer and e-liquid industry in general; actions
and initiatives of federal and provincial governments and changes
to government actions, initiatives and policies and the execution
and impact thereof; and the size of the global e-cigarette and
vaping market; 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.
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