Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT, SUGR.WS,
SUGR.DB) ("
Sugarbud" or the
"
Company") is pleased to announce that, as part of
the previously announced contract manufacturing agreement (the
"
Agreement"), it has formally started the final
development and qualification of its additive-free, full-spectrum
vape cartridges with Heritage Cannabis Holdings Corp. (CSE: CANN)
("
Heritage").
Under the terms of the Agreement, Heritage will
continue to provide Sugarbud with extraction, formulation and
production services for the development of its pre-filled vape
cartridges utilizing proprietary, additive-free formulations.
"Our high quality, additive-free, full-spectrum
vape products contain dried cannabis as the sole ingredient and are
a natural and logical extension of our inhaled product strategy.
Sugarbud vape products will leverage and embody the quality,
consistency, flavour profiles and aromas found in our exceptional
craft cannabis flower," stated Mr. Kondrosky, CEO of Sugarbud.
New cannabis derivative products and formats
such as vape cartridges and pens are a rapidly growing segment of
the Canadian adult-use recreational market and Sugarbud expects
that its high-quality, additive-free vape products will become a
significant catalyst for future growth.
"We are confident that our partnership with
Heritage will equip Sugarbud to deliver high quality products to
consumers with the safety, integrity and exceptional outcomes they
demand," concluded Mr. Kondrosky.
"We are very pleased to be working with Sugarbud
on the production of full-spectrum vape cartridge products to
support its cannabis 2.0 strategy," commented Clint Sharples, CEO
of Heritage. "As Sugarbud's manufacturing partner, Heritage will
produce high-demand, full-spectrum cannabis oil products using no
harmful additives, flavours or carrier oils, and will maintain
consistency in the strain profile between Sugarbud's craft cannabis
and the final products."
The Company expects to apply to Health Canada
for an amendment to its sales license to permit the direct sale of
cannabis extracts in early Q4 of 2020.
Filing of Q2 2020
Financials
Sugarbud is also pleased to announce the filing
of its Q2 2020 unaudited condensed consolidated interim financial
statements (“Financial Statements”) for the three
months ended June 30, 2020 and related management’s discussion and
analysis (“MD&A”). Sugarbud’s Financial
Statements and related MD&A are available on SEDAR
at www.sedar.com and on Sugarbud's website
at www.sugarbud.ca.
“The successful closing of the non-dilutive
First Calgary facility and the fully-subscribed Convertible
Debenture offering not only significantly improved Sugarbud’s
working capital position, but is a clear vote of confidence in the
Company’s management and its focused strategy on producing premium
select-batch cannabis products,” stated Chris Moulson, CFO of
Sugarbud.
“Together with our established lease financing
relationship, these financings put Sugarbud on track to deliver on
its stated operational and commercial scale-up plans,” concluded
Mr. Moulson.
About Sugarbud
Sugarbud is an Alberta-based, consumer-driven
craft cannabis company; focused on the cultivation and production
of superior, select-batch, craft cannabis products. Our vision and
mission are to become a trusted and well-respected consumer brand -
renowned for providing exceptional high-quality craft cannabis
products to legal markets by delighting the most discerning of
cannabis consumers.
http://www.sugarbud.ca/
About Heritage
Heritage Cannabis Holdings Corp. is a vertically
integrated cannabis company that owns two Health Canada approved
licenced producers, Voyage Cannabis Corp. and CannaCure Corp., both
of which also have industrial hemp licenses. Additionally, Voyage
recently received its sales license from Health Canada, and
Heritage will be launching its own products in the BC, AB, and MB
markets in summer 2020, with other provinces to follow. Working
under its licenses, Heritage has two additional subsidiaries,
Purefarma Solutions, that provides extraction services, and a
Medical Services Division which is focused on cannabis based
medical solutions. Heritage as the parent company, provides the
synergies and resources for its subsidiaries to advance its medical
and adult use products and services both domestically and
internationally.
http://www.heritagecann.com/
John Kondrosky Chief Executive Officer Sugarbud
Craft Growers Corp. Phone: (604) 499-7847 E-mail:
johnk@sugarbud.ca Investor Relations Contact Chris
Moulson Chief Financial Officer Sugarbud Craft Growers
Corp. Tel: (778) 388-8700 E-mail:
chrism@sugarbud.caWebsites:
http://www.sugarbud.ca/http://craftcannabiscollection.caAddress:
Suite 620, 634 - 6th Avenue S.W., Calgary, Alberta T2P 0S4 |
|
Forward Looking and Cautionary
Statements
This news release contains forward-looking
statements. More particularly, and without limitation, this news
release contains statements concerning: Sugarbud's assessment of
future plans, operations and cannabis cultivation, including sales,
marketing and distribution opportunities; the Company's ability to
remain operating in accordance with developing public health
efforts to contain COVID-19; product quality; partnerships,
including with Heritage; the development, production and sale of
cannabis derivative products, including vape cartridges; applying
for an amendment to its sales license to permit direct sale of
cannabis extracts; future growth; and the ability to build
shareholder value. When used in this document, the words "will,"
"anticipate," "believe," "estimate," "expect," "intent," "may,"
"project," "should," and similar expressions are intended to be
among the statements that identify forward-looking statements. The
forward-looking statements are founded on the basis of expectations
and assumptions made by Sugarbud. Forward-looking statements are
subject to a wide range of risks and uncertainties, and although
Sugarbud believes that the expectations represented by such
forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ materially
from those in the forward-looking statements including, but not
limited to: currently contemplated expansion and development plans
may cease or otherwise change; production of cannabis may be lower
than expected, Sugarbud may not obtain the required approvals from
Health Canada, including with respect to an amended sales license;
demand for Sugarbud's products may be lower than anticipated;
results of production and sale activities; results of scientific
research; changes in prices and costs of inputs; demand for labour;
demand for products; failure of counter-parties to perform
contractual obligations; failure to maintain consumer brand
recognition and loyalty of customers; reliance on relationships
with wholesalers and retailers for distribution of products and
failure to maintain strategic business relationships; intense
competition, including from illicit sources; uncertainty and
continued evolution of markets; product liability litigation;
reliance on information technology; infringement on intellectual
property; failure to benefit from partnerships; sensitivity of
end-customers to increased sales taxes and economic conditions;
failure to comply with certain regulations; departure of key
management personnel or inability to attract and retain talent;
actions and initiatives of federal and provincial governments and
changes to government actions, initiatives and policies and the
execution and impact thereof; the ability to implement corporate
strategies; the state of domestic capital markets; the ability to
obtain financing; changes in general market conditions; industry
conditions and events; the size of the medical marijuana market and
the recreational marijuana market; government regulations,
including future legislative and regulatory developments involving
medical and recreational marijuana; construction delays; risks
inherent in the agricultural business, such as insects, plant
diseases and similar agricultural risks which can have a
significant impact on the size and quality of the harvest of
cannabis crops; competition from other industry participants; and
other factors more fully described from time to time in the reports
and filings made by Sugarbud with securities regulatory
authorities. In addition, the Company cautions that current global
uncertainty with respect to the spread of the COVID-19 virus and
its effect on the broader global economy may have a significant
negative effect on the Company. While the precise impact of the
COVID-19 virus on the Company remain unknown, rapid spread of the
COVID-19 virus may have a material adverse effect on global
economic activity, and can result in volatility and disruption to
global supply chains, operations, mobility of people and the
financial markets, which could affect interest rates, credit
ratings, credit risk, inflation, business, financial conditions,
results of operations and other factors relevant to the Company.
Please refer to Sugarbud's most recent annual information form and
management's discussion and analysis for additional risk factors
relating to Sugarbud, which can be accessed under Sugarbud's
profile on www.sedar.com. Except as required by applicable
laws, Sugarbud does not undertake any obligation to publicly update
or revise any forward-looking statements.
Neither the TSXV nor its regulation
services provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
release.
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