CALGARY, Feb. 11, 2020 /CNW/ - Sugarbud Craft Growers
Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased to
announce that it has entered into a toll processing agreement with
Adastra Labs Holdings Ltd. (CSE: XTRX) ("Adastra").
Under the terms of the agreement, Adastra will supply Sugarbud
with standard processing services for a minimum of 1,200,000 grams
of premium dried cannabis flower and trim over a period of 12
months beginning June 1, 2020,
subject to licensing and regulatory approvals.
"Building upon the supply agreement we signed with Adastra in
September 2019, we are pleased to be
expanding our relationship and look forward to collaborating with
the entire team to develop novel value-added inhaled extract
formulations and formats to complement our premium dried cannabis
products," stated John Kondrosky,
CEO of Sugarbud.
Andy Hale, CEO of Adastra,
stated, "This latest agreement further develops our growing
partnership with Sugarbud who will provide high-quality cannabis
that will be used to create premium extract products. We look
forward to our continuing collaboration with the team at
Sugarbud."
"Sugarbud's near term product leadership strategy is to leverage
its existing licensed cultivation and production facility to
produce exceptional premium dry flower and inhalable derivatives
such as pre-rolls and concentrates. Our strategy and approach to
revenue and value generation is driven by a relentless focus on
providing a high-quality product that adult recreational consumers
seek, through targeted, controlled commercial expansion," added Mr.
Kondrosky.
Operational Update
Sugarbud expects its first harvest will occur on or about
March 2, 2020. "Our first
harvest represents a major milestone for Sugarbud and we are all
very pleased with the progress our team in Stavely is making with the quality of our
first crop and with the operating level of our facility overall,"
stated Mr. Kondrosky.
"As a craft cultivator we aspire to be known first and
foremost as a trusted world-class producer of exceptional
high-quality cannabis. As a premium product provider, focused on
product leadership and customer satisfaction, we also believe that
the heart and soul of everything we do starts with what we grow.
With a robust and diversified genetic portfolio, and an unwavering
commitment to high quality cultivation, we have all ingredients
necessary to deliver relevant and category leading products to our
future adult recreational customers. At Sugarbud we believe that
positive customer experience is everything and we are passionate
about delivering products that both delight and exceed
expectations," continued Mr. Kondrosky.
Sugarbud expects to submit an amendment to expand upon their
existing Medical Sales license to permit the sale of
interprovincial adult recreational dried cannabis products to
authorized provincial retailers in February
2020. Sugarbud plans to launch its first adult recreational
products in late Q3 2020.
Significant Market Opportunity Remains
Management believes that despite some of the headwinds present
in the market today, significant opportunity remains for a focused
company like Sugarbud to distinguish itself as a leader in the
cannabis space by implementing a very disciplined product driven
supply chain that begins and ends with the end customer in
mind.
Corporate Update
Sugarbud is pleased to announce the appointment of Mr. Chris
Moulson LLB, MBA as V.P. of Finance and Chief Financial Officer of
the Company effective February 11,
2020. Chris brings more than 25 years of experience in
finance, business development, corporate law, commercial marketing
and strategic planning roles to Sugarbud. Prior to Sugarbud, Mr.
Moulson served as Chief Financial Officer of Polaris Seismic
International, Canada's leading international seismic
exploration company, with operations across the Middle East and East
Africa.
"Chris possesses critical skillsets that will undoubtably make a
positive impact and contribute to our overall success moving
forward," stated Sugarbud CEO, John
Kondrosky.
Mr. Brad Giblin has made a
personal decision to step down from his positions as Sugarbud's
V.P. of Finance and Chief Financial Officer to return to the energy
sector. "We are incredibly grateful for the leadership and many
contributions Brad has made during his tenure with Sugarbud and we
wish Brad nothing but the best in his future endeavors", stated
CEO, John Kondrosky. "We are also
grateful for the time and effort Mr. Giblin took in order to ensure
and facilitate a seamless transition between himself and his
incoming replacement," continued Mr. Kondrosky.
About Sugarbud
Sugarbud is a federally licensed Alberta based craft cannabis company, focused
on the cultivation and production of genetically diverse, high
quality, select-batch, ultra-premium cannabis products.
http://www.sugarbud.ca/
About Adastra
Adastra is a British
Columbia-based publicly traded cannabis company and, through
its wholly owned subsidiaries, Adastra Labs Inc. and Chemia
Analytics Inc., is in the application process to become a Standard
Processor and is licensed as an Analytical Testing Laboratory under
the Cannabis Act administered by Health Canada, with licences to
produce cannabis extracts and provide third party analytical
testing services. These licences 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.
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 strategy and assessment of future
plans, operations and cannabis cultivation, including the timing of
first harvest; product quality; the launch of adult recreational
products and the timing thereof; the toll processing agreement and
partnership with Adastra; the timing of obtaining necessary
approvals required to conduct the contemplated business of the
supply agreements; future value-added cannabis product offerings of
the Company, including pre-rolls and concentrates; and management
changes. 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, including approving an amendment to its dried
cannabis sales licence to permit interprovincial sales, demand for
Sugarbud'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; 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.
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI") about
Sugarbud's operations, future cannabis production and components
thereof, all of which are subject to the same assumptions, risk
factors, limitations, and qualifications as set forth in the above
paragraph. 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, 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.