REPEAT - AgraFlora Organics Secures 51,500 Sq. Ft Edibles Manufacturing Facility; Anticipates Q1 2020 Receipt of Health Canad...
June 21 2019 - 8:30AM
AgraFlora Organics International Inc.
(“
AgraFlora” or the
“
Company”) (
CSE: AGRA) (Frankfurt:
PU31) (OTCPK: PUFXF), a growth oriented and diversified
international cannabis company, is pleased to provide the following
operating milestones, licensing timelines and retrofit updates
pertaining to its edibles manufacturing and distribution
subsidiary, The Edibles and Infusions Corp. (“Edibles and
Infusions”):
- Acquisition of its flagship 51,500 square foot edibles
manufacturing facility located in Winnipeg, Manitoba;
- September 2019 anticipated completion date for facility
upgrades, including architectural, mechanical, electrical and
security retrofits, as per Health Canada regulations;
- Forecasted to be fully operational by the first quarter of 2020
and, once optimized, will be capable of generating in excess of
$750 million in annual sales revenue;
- Existing distribution channels of 20,000 locations across North
America, most prominently Costco and Wal-Mart;
- Roster of experienced chocolatiers and confectioners,
established industry relationships and best-in-class supply chain
management infrastructure;
- Several hundred SKUs already in production;
- Fiscal Q1 2020 delivery of fully automated manufacturing and
depositing line for cannabinoid-infused gummies, chocolate, toffee,
caramel and hard candy;
- Completion of a pharmaceutical grade, turnkey edibles research
and development (“R&D”) lab and product development facilities
by August 2020;
- Forecasted receipt of Health Canada awarded processing and
sales licenses by fiscal Q1 2020;
- Engagement of 3 Sixty Risk Solutions Ltd. (“3 Sixty”) and
Cannabis License Experts for application acceleration and
development of standard operating procedure (“SOPs”);
- Advanced negotiations with Tier 1 Licenced Producer (“LPs”)
peer group to develop and contract manufacture an array of
cannabinoid edible confections; and,
- Definitive discussions to secure national listings for
CBD-infused functional foods across thousands of shelves in major
grocers and retail locations.
AgraFlora controls an 80 per cent interest in Edibles and
Infusions, a joint venture (the “JV”) with one of North America's
largest and most storied manufacturer and distributor of chocolate
and sugar confectionary products. Upon successful receipt of
appropriate Health Canada Licensing, the JV will produce an
assortment of both cannabinoid/terpene-infused products for
medicinal, functional and adult use, including but not limited
to:
- Gourmet snacks, including caramel popcorn, cheese biscuits,
cocoa cookies, glazed pecans and salty pretzels;
- Chocolates/toffees/caramels;
- Gummies/confectionary/gum;
- Baked goods;
- Powdered drinks;
- CBD-infused pet products.
Edibles and Infusions anticipates its recently acquired 51,500
square foot edibles manufacturing facility will be fully
operational by the first quarter of 2020 and, once optimized, will
be capable of generating in excess of $750 million in annual sales
revenue. Projected revenues are derived from logical assumptions
including the facility achieving full capacity and the equipment
operating seven days per week, 20 hours per day with all product
being sold to downstream distributors, with the sales price based
on current comparable retail pricing in the United States.
The Company’s JV partner was established nearly a century ago
and has since become North America's largest confectionary fruit
slice manufacturer, supplying products to over 20,000 locations
across North America, most prominently Costco and Wal-Mart.
Together, AgraFlora and Edibles Infusions will leverage extensive
operating experience and existing industry relationship to:
- Expedite product to market;
- Design cutting-edge packaging protocols;
- Source superior raw product inputs; and,
- Develop premium product formulations.
Equipped with a roster of experienced chocolatiers and
confectioners, as well as established industry relationships and
best-in-class supply chain management infrastructure, AgraFlora’s
JV partner currently manufactures and distributes several hundred
unique stock keeping units (“SKUs”).
Upon receipt of appropriate Health Canada licensing, AgraFlora
will supply the JV with inputs for the edibles manufacturing
process such as artisanal, ultra-premium dried cannabis flower, as
well as premium cannabis trim from its Delta Greenhouse Complex and
ACMPR licenced AAA Heidelberg facility. The Company’s vertically
integrated cannabis ecosystem will afford AgraFlora the ability to
capture material revenues from upstream cultivation, to downstream
product formulation/manufacturing/extraction and end retail
distribution.
Once operational, and in receipt of all necessary tertiary
licenses as required from a regulatory perspective, the true value
of the Delta Greenhouse Complex will be crystallized via its
ability to serve as a robust feedstock source for the myriad of
downstream value added assets that are domiciled under the
AgraFlora corporate banner. The successful implementation of full
vertical integration will support increased efficiency across
business channels and allow for maximum economic margin capture for
the enterprise as AgraFlora moves into the next phase of cannabis
normalization.
AgraFlora is also pleased to report that Edibles and Infusions
continues to conduct advanced contract manufacturing negotiations
with Tier 1 Canadian LPs. The Company is of the opinion the pursuit
of edibles contract manufacturing agreements with its peer group
will further bolster its balance sheet with another source of
sustainable, de-risked cash flows.
Brandon Boddy, Chief Executive Officer and Chairman of AgraFlora
stated: “Establishing a controlling stake in this JV is truly a
transformative transaction for AgraFlora. Along with our highly
reputable JV partner, we have firmly positioned ourselves at the
forefront of the next phase of cannabis normalization- cannabis
2.0. Now armed with this state-of-the-art facility, AgraFlora
expects to become the unequivocal leader within the highly
lucrative cannabinoid-infused edibles and functional food
marketplaces.
The acquisition of a dedicated 51,500 square foot edibles
manufacturing and processing facility will further differentiate
AgraFlora as a leading fully integrated cannabis company. Once
fully optimized, from the time raw ingredients arrive in tankers,
to the time the finished pallets leave the facility, no human
intervention is required. Our entire system will be automated to
ensure the highest quality standards, food safety and facility
security.
With Health Canada sales and processing licencing anticipated to
be granted in Q1 of 2020, the Company will be equipped to
capitalize on the anticipated vacuum created by the regulated
edibles, extract and cannabinoid-infused beverage marketplace in
December 2019.”
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and
diversified company focused on the international cannabis industry.
It owns an indoor cultivation operation in London, ON and is a
joint venture partner in Propagation Service Canada and its
large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The
Company has a successful record of creating shareholder value and
is actively pursuing other opportunities within the cannabis
industry. For more information please visit: www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy Chairman & CEOT: (604) 682-2928
For additional information:
AgraFlora Organics International Inc. Tim
McNultyE: ir@agraflora.com T: (800) 783-6056 |
For French inquiries: Remy
Scalabrini, Maricom Inc.E: rs@maricom.ca T: (888)
585-MARI |
The CSE and Information Service Provider have
not reviewed and does not accept responsibility for the accuracy or
adequacy of this release.
Forward-looking Information Cautionary
Statement
Except for statements of historic fact, this news
release contains certain "forward-looking information" within the
meaning of applicable securities law. Forward-looking information
is frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those anticipated in the forward-looking statements including, but
not limited to delays or uncertainties with regulatory approvals,
including that of the CSE. There are uncertainties inherent in
forward-looking information, including factors beyond the Company’s
control. There are no assurances that the business plans for
AgraFlora Organics described in this news release will come into
effect on the terms or time frame described herein. The Company
undertakes no obligation to update forward-looking information if
circumstances or management's estimates or opinions should change
except as required by law. The reader is cautioned not to place
undue reliance on forward-looking statements. Additional
information identifying risks and uncertainties that could affect
financial results is contained in the Company’s filings with
Canadian securities regulators, which are available at
www.sedar.com.
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