AgraFlora Organics International Inc.
(“
AgraFlora” or the “
Company”)
(
CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF),
a growth oriented and diversified international cannabis company,
welcome Health Canada’s formalized regulations for the production
and sale of edible cannabis, cannabis extracts and cannabis
topicals (the “Regulations”) with over C$85 million in associated
plant, property and equipment (“PPE”) expenditures related to its
cannabis 2.0 asset portfolio.
In preparation for the next phase of cannabis normalization, as
well as the associated Regulations, AgraFlora has executed on an
assertive corporate acquisition stratagem, amassing a diverse
portfolio of vertically integrated cannabis 2.0 assets and industry
partnerships; focused on the following mandates:
- Innovative derivative product manufacturing;
- Defendable cannabinoid-infused edibles, beverage and topical
formulation methodologies;
- Diverse brand platforms and trademark aggregation;
- Finished cannabis form factors; and,
- Quality assurance/control of input product for R&D and
derivative product development;
To date, AgraFlora has deployed over C$16 million in PPE
expenditures at its Winnipeg Edibles Facility and 76-acre cannabis
campus in Kent County, New Brunswick. Milestone infrastructure
upgrades at the Winnipeg Edibles Factory, which will be highlighted
in the Company's upcoming affirmation of readiness and video
evidence package submission to Health Canada, include:
- Completion of perimeter security fencing;
- Installation of pharmaceutical-grade building envelope,
including epoxy floors, as well as food-grade insulated metal
panels for walls and ceiling;
- Installation of comprehensive surveillance and anti-intrusion
systems, as well as access control infrastructure supported by
servers and sustained by independent, backup generators;
- Modernization of water service infrastructure;
- Fire suppression system installation;
- Improvements to the facility's structural integrity;
- Installation of two rooftop HVAC units;
- Upgrading of electrical service infrastructure, including
transformers and surge protection systems;
- Installation of floor drains throughout the 33,000 square foot
production area;
- Completion of a pharmaceutical-grade research and development
(“R&D”) laboratory, including the installation of
state-of-the-art equipment for the weighing, handling and
processing micro-dosages of CBD/THC compounds, including magnetic
mixers, homogenizers and high-pressure liquid chromatograph
(“HPLC”);
- Retrofitting of the facility's on-site high-pressure boiler
room; and,
- Upgrading office and staff facilities.
AgraFlora will leverage its anticipated R&D license at its
Winnipeg Edibles Facility to pursue innovative derivative product
formulation and manufacturing initiatives in readiness for Phase 2
of legalization, including: Vapes, Chewables. Tablets, Lozenges,
Chocolates, Oils/Sprays, Capsules and Topicals.
The Company also reports material facility retrofit expenditures
at its Toronto, Ontario brewery (the “Brewhouse”), which are
projected to increase its output capacity to over 200,000
hectolitres (“hl”) per annum. Upon completion of the retrofit,
aggregate capital expenditures deployed on the Brewhouse will
exceed C$20 million. By way of an exclusive agreement, AgraFlora
holds claim to the exclusive formulation, manufacturing and
distribution rights for all cannabinoid-infused beverages developed
at said Brewhouse.
Additionally, the Company announces research and development
(“R&D”) expenditures of US$30 million in connection with its
patented, pharmaceutical grade and hermitically sealed dispensing
technology (the “Pharma-Grade Bottle Cap”). AgraFlora’s
Pharma-Grade Bottle Cap enables the fresh release of premium and
blended medicinal ingredients and/or cannabinoids into an
assortment of bottled liquids, resulting in superior shelf
stability and increased efficacy when compared with premixed
beverages, which are susceptible to rapid nutrient
deterioration.
AgraFlora reports C$10 million in capitalized assets in relation
to its 57 distinct, high-value cannabis product and service
trademarks (the “Cannabis Trademarks”), associated goodwill, as
well as branding and exclusive distribution rights in connection
with its CBD-sports partner and transcontinental professional
sports team, the Toronto Wolfpack RLFC (the “Wolfpack” or TWP”),
based off the acquisition value from Organic Flower Investments
Group Inc.
AgraFlora and the Wolfpack are preparing for the North American
launch of a GMP-certified, CBD-infused performance SKU, Rugby
Strength. The Wolfpack currently boasts exposure to over
250,000,000 homes for each of its 29 regular season games per
season.
Included in the Cannabis Trademark portfolio are a series of
recognizable trademarks for exclusive use within the cannabis
industry: regional airport call signs, telephonic area codes and
other such recognizable regional identifiers for every Canadian
municipality with over 100,000 residents.
Management is of the opinion that its Cannabis Trademarks, as
well as the likeness of its CBD-sports partner exhibit unrivalled
branding potential for the cannabis space. It is the Company’s
thesis that consumers will gravitate towards premium SKUs, which
are branded with familiar labels and markers while navigating their
maiden purchase of cannabis products- thus amplifying a sense of
allegiance to their respective region.
A summary of related expenditures to date associated with the
Company’s downstream asset portfolio include:
- Over C$16 million in direct plant, property and equipment
(“PPE”) expenditures at its Winnipeg Edibles Facility and 76-acre
cannabis campus in Kent County, New Brunswick;
- Aggregate capital expenditures in excess of C$20 million
deployed on the Company’s Toronto, Ontario Brewhouse;
- R&D expenditures of US$30 million in connection with its
patented, pharmaceutical grade and hermitically sealed Pharma-Grade
Bottle Cap; and,
- C$10 million in capitalized assets in relation to its 57
distinct, high-value Cannabis Trademarks, associated goodwill, and
branding and exclusive distribution rights in connection with the
Wolfpack.
Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora
stated: “With over C$85 million in expenditures related to our
downstream asset portfolio, our position as a Tier 1 LP is further
crystalized as the industry prepares for the second phase of
cannabis normalization. Our commitment to best in breed
infrastructure and scalable production processes will ensure that
we occupy pole position fulfill the insatiable demand for the next
generation of edible cannabis, cannabis extracts and cannabis
topicals.
“Once fully optimized, our Winnipeg Edibles Facility will boast
fully automated production flow - 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
licensing anticipated to be granted in the first quarter of 2020,
the Company will be equipped to capitalize on the anticipated
vacuum created by the regulated edibles, extract and
cannabinoid-infused beverage marketplace.”
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 is also retrofitting a 51,500-square-foot good
manufacturing practice (“GMP”) edibles manufacturing facility in
Winnipeg, Manitoba. AgraFlora 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) 398-3147
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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