Eureka 93 Inc. (CSE: ERKA, “Eureka93” or the
“Company”), one of North America’s largest hemp-derived cannabidiol
(CBD) extraction and processing companies, today announced that it
has refocused its growth strategy for the Company in conjunction
with the filing of its Annual Information Form.
Based on long-term growth opportunities in the U.S. and
leveraging the Company’s extraction expertise,
Eureka93 management has decided to focus its
growth efforts on expanding its hemp-derived CBD business in both
the United States and Canada, specifically processing and
distributing CBD-based products. As a result of its refocused
growth strategy, the Company has decided not to pursue any business
involving non-hemp cannabis.
“By focusing our efforts on hemp-derived CBD, we expect to drive
greater value for our stakeholders,” said David Rendimonti, CEO,
Eureka93. “We can consistently extract and produce
CBD products from hemp at scale, and we believe that leveraging
that expertise will enable us to capture greater market share in
the U.S. and Canada.”
U.S. Hemp-Derived CBD Growth Strategy
The Company’s Montana facility is fully operational and can
consistently produce up to 8,000 litres of full plant extract per
month, subject to biomass availability. This full plant extract may
be sold at this point or may be further refined and isolated to
create up to 800 kilograms of CBD isolate per month (assuming
minimum 10% CBD hemp biomass). In May 2019, the Company registered
this facility with the FDA.
The Las Cruces, New Mexico, facility (the “New Mexico facility”)
was acquired during the first quarter of 2019. Subject to available
capital, management plans to convert this to a GMP facility in
anticipation of FDA regulations and to better position the Company
to gain market share. Subject to completion of the engineering
review, management has estimated a capital investment of
approximately US$25 million, with an estimated timeline to complete
of six to nine months post breaking ground. This significantly
larger facility is expected to increase the
Eureka93’s current extraction capacity by
approximately 2,000,000 kg (2,000 metric tons/4,409,250 lbs) of
hemp biomass per month. At full production capacity, this would
generate up to an additional 70,000 kgs (70 metric tons/154,324
lbs) of CBD isolate per month.
Canadian Hemp-Derived CBD Growth Strategy
Assuming the Company’s Ottawa, Ontario, location is successful
in obtaining a Standard Cultivation Licence, cultivation will focus
on growing industrial hemp with the goal of producing and
distributing CBD isolate and full-plant extract oil. The
Health Canada Standard Cultivation Licence will enable
Eureka93 to distribute hemp-derived CBD products
to Canadian Licensed Producers. The Company is diligently working
directly with Health Canada in responding to inquiries regarding
this application.
Subject to obtaining relevant licensing from Health Canada, the
Company also plans to expand its Windsor, Ontario, location for
future CBD-based health and wellness product manufacturing as well
as advanced research and development. This facility contains 20
pharmaceutical-grade clean rooms, is certified by Health Canada,
has NSF certifications for GMP and Sport, is a USDA-Certified
Organic Manufacturer, and is an FDA-registered facility.
About Eureka93 Eureka93 is a
multi-faceted CBD life sciences company with significant U.S.
assets and operations, dedicated to the extraction, production, and
distribution of CBD, a naturally occurring, non-psychoactive
compound found in the hemp plant. With facilities in Eureka,
Montana, Ottawa, Ontario, and Windsor, Ontario, the vertically
integrated company is dedicated to producing the highest-quality
CBD products for its customers. Eureka93 is a
design-driven company for creative solutions in systems, products,
packages and services. For more information visit, Eureka93.com
Forward-Looking Statements
Certain statements contained in this news release constitute
forward-looking statements or forward-looking information under
applicable securities legislation. Forward-looking statements
include all disclosures regarding possible events, conditions or
results of operations that are based on assumptions about future
economic conditions and courses of action. Forward-looking
statements may also include, without limitation, any statement
relating to future events, conditions or circumstances. The Company
cautions readers not to place undue reliance upon any such
forward-looking statements, which speak only as of the date they
are made. Often, but not always, forward-looking statements can be
identified by the use of words or phrases such as “plans”,
“expects” or “does not expect”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, “believes” and similar expressions or
statements that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved, and may
be based on management’s current assumptions and expectations
related to all aspects of the Company’s business, industry and the
global economy. Further, the Company cautions that this foregoing
list of material factors is not exhaustive and additional
information identifying risks are detailed from time to time in the
Company’s other continuous disclosure filings.
The forward-looking information contained in this press release
represents expectations of the Company as of the date of this press
release and accordingly, is subject to change after such date.
Readers should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While the Company may elect to, it does not undertake
to update this information at any particular time except as
required in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its
Regulation Services Provider accepts responsibility for the
adequacy or accuracy of this release.
SOURCE: Eureka 93 Inc.
For more information:
Investors Conrad Seguin 437.226.7002 or
cseguin@eureka93.com MediaSónia Brum 647.338.7381
or sbrum@eureka93.com
Company David Rendimonti, Chief Executive
Officer 819.718.2042
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