AgraFlora Organics Secures 51,500 Sq. Ft Edibles Manufacturing Facility; Anticipates Q1 2020 Receipt of Health Canada Sales a...
June 21 2019 - 11:36AM
AgraFlora Organics International Inc.
(“
AgraFlora” or the
“
Company”) (
CSE: AGRA) (Frankfurt:
PU31) (OTCPK: PUFXF), a growth oriented and diversified
international cannabis company, at the request of the Investment
Industry Regulatory Organization of Canada (“IIROC”) provides 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”). The Company notes that all revenue forecasts were
based on the assumption of the successful receipt of applicable
Health Canada licenses, at this time there are no guarantees that
the aforementioned licenses will be granted:
- 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;
- 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”);○ Licensing forecasts derived from
documented correspondence with the Company’s consultants;
- 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.○ Leveraging pre-existing
supply/distribution relationships of AgraFlora’s Joint Venture
partner.
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.
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 and 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.”
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.
Agra Ventures (CSE:AGRA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Agra Ventures (CSE:AGRA)
Historical Stock Chart
From Jul 2023 to Jul 2024