Organic Flower Investments Group Inc. (CSE: SOW)(FWB:
2K6)(OTC: QILFF) ("Organic Flower" or
“OFIG” or the
“Company”) is
pleased to announce the Company has entered into a definitive
agreement to acquire 80 per cent of 11353675 Canada Corp. d/b/a
CanaBeer.
By way of an exclusive partnership agreement with a leading
Toronto-based brewery (the “Brewhouse”), Canabeer holds claim to
the exclusive formulation, manufacturing and distribution rights
for all cannabinoid-infused beverages developed at said Brewhouse.
Organic Flower and CanaBeer plan to commence product formulation
and batch testing during Q2 of 2019, with forecasted commercial
production slated to begin in Q4 2019.
Equipped with custom production equipment, a captive research,
development and testing facility, as well as a state-of-the-art
brewing infrastructure, the Brewhouse is armed with annual output
capacity capabilities of 120,000 hectoliters (“HL”). By comparison,
Canadian brewer Steam Whistle Brewing produces approximately 95,000
HL on an annualized basis.
The Brewhouse is nearing completion of major facility retrofit
initiatives, which are projected to increase its output capacity to
over 200,000 HL per annum. Upon completion of the retrofit,
aggregate capital expenditures deployed on the Brewhouse build-out
will exceed $20 million.
Comprised of a consortium of experienced brewery partners, the
Brewhouse has completed multiple production runs for prominent
European beverage brands such as:
- Guinness
- Augustiner
- Innes & Gunn
Proprietary brewing processes and associated technologies firmly
position the Brewhouse at the forefront of non-alcoholic,
cannabinoid-infused beverage development. The Brewhouse’s
experienced roster of brew masters have developed a suite of unique
non-alcoholic beverage formulations; which better replicate the
profile of traditional alcoholic beverages.
The acquisition of Canabeer provides Organic Flower with
exposure to a collective of domestic and global brewery partners,
as well as further crystalizes a leading production platform for
the Company’s carbonated beverage products offering, including:
- Non-alcoholic beers
- Seltzers
- Ready-to-drink (“RTDs”) beverages
In addition, the Brewhouse possesses the ability to package both
steel kegs and plastic one-way kegs in a plethora of fittings, and
is equipped 24-head rotary canning line, capable of packaging a
variety of container dimensions at a rate of over 100,000,000
containers per year. The Brewhouse also boasts an adjoined
tasting and viewing facility (the “Taproom”) affording Organic
Flower the ability to showcase product launches, beer dinners,
community events and gallery showings.
Joel Dumaresq, Chief Executive Officer and a Director of Organic
Flower stated: "Organic Flower continues to differentiate itself
from its peer group through the astute acquisition of a broad
basket of downstream assets with exposure margin rich cannabis
verticals. The acquisition of Canabeer further bolsters the
Company’s position as Canada’s premier cannabinoid-infused beverage
consolidation platform. According to Zion Market Research, the
global cannabis beverage market is expected to grow by 15% CAGR
over the next five years, to USD$4.5 billion by 2025. This
exclusive partnership augments Organic Flower’s existing
cannabinoid beverage production portfolio, including coffees, teas,
and juices.
This is the most opportune time to be a first mover within the
adult-format beverage market vertical; further substantiated by the
pending October 2019, legalization of cannabis-infused edibles,
which is anticipated to prohibit the combination of cannabis and
alcohol. Our goal is to further supplement our growing stable of
great-tasting alcohol-free, cannabinoid-infused beverages with the
objective of capturing dominant market share".
Under the terms of the definitive agreement, Organic Flower will
acquire 80% of all the issued and outstanding shares in the capital
of CanaBeer in exchange for an aggregate of 9,166,000 common shares
in the capital of the Company, based upon the five-day VWAP of
Organic Flower's common shares for the five trading sessions prior
to the announcement of the definitive agreement (the “Payment
Shares”). The Payment Shares issuable on the acquisition of 80% of
CanaBeer are subject to a hold period of four (4) months and one
(1) day. The closing of this acquisition is subject to customary
terms and conditions contained in the Definitive Agreement.
A finder’s fee is payable on this transaction.
ABOUT ORGANIC FLOWER INVESTMENTS
Leveraging strategic relationships, proprietary investments and
exclusive partnerships with preeminent international cannabis
cultivators and formulators for the development of best in class
products and brands to be marketed and distributed throughout our
global footprint.
Via its wholly owned subsidiary, Delta Organic Cannabis Corp
(“DOC”), Organic Flower is launching one of the largest and most
efficient cannabis facilities on the planet.
Organic Flower has assembled a unique portfolio of downstream
and product formulation operations and assets including:
- Exclusive cannabinoid-infused supply and distribution agreement
with a premier Canadian Bottler (cannabinoid-infused
beverages);
- Agreement to acquire a Canadian CBD cosmetics/topicals
manufacturing company, equipped with a vertically integrated,
farm-to-face model (cosmetics and topicals);
- JV with one of North America’s largest manufacturer
and distributor of chocolate and sugar confectionary products
(cannabinoid-infused edibles and functional foods); and,
- Sole Canadian manufacturer and distributor of an innovative
beverage dispensing cap technology, equipped with a
proprietary cannabinoid delivery mechanism (cannabinoid-infused
beverages);
ON BEHALF OF THE ORGANIC FLOWER INVESTMENTS GROUP INC.
BOARD OF DIRECTORS
“Joel Dumaresq”
Joel Dumaresq CEO, Director +1 (604)
336-3195info@sowcannabis.ca
Learn more about Organic Flower by visiting our website
at: https://sowcannabis.ca/
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
Notice Regarding Forward Looking
Information:
This news release contains certain
"forward-looking information" within the meaning of applicable
Canadian securities law. Forward-looking information is frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed" and other similar words, or
information that certain events or conditions "may" or "will"
occur. This information is only a prediction. Various assumptions
were used in drawing the conclusions or making the projections
contained in the forward-looking information throughout this news
release. Forward-looking information includes, but is not limited
to: political changes in Canada and internationally, future
legislative and regulatory developments involving cannabis in
Canada and internationally, the Company’s ability to secure
distribution channels in international jurisdictions, competition
and other risks affecting the Company in particular and the
cannabis industry generally. Without limiting the generality of the
foregoing, the forward-looking statements herein relate to, among
other things, the Company successfully commencing product
formulation and batch testing in a timely manner; and the ability
of the Brewhouse to successfully complete its planned facility
retrofit initiatives at its facility.
The forward-looking information contained in
this release is expressly qualified by the foregoing cautionary
statements and is made as of the date of this release. Except as
may be required by applicable securities laws, the Company does not
undertake any obligation to publicly update or revise any forward-
looking information to reflect events or circumstances after the
date of this release or to reflect the occurrence of unanticipated
events, whether as a result of new information, future events or
results, or otherwise.
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