Orders commence under cannabis derivative
product sale agreement with Delta 9 with initial order for
vape pens and cartridges
CALGARY, Nov. 4, 2019 /CNW/ - Westleaf Inc. (the
"Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF) is
pleased to announce that the conditions precedent to the
white-label cannabis derivative product sale agreement (the
"White-Label Agreement") between the Company's wholly owned
subsidiary Westleaf Labs LP ("Westleaf Labs") and Delta 9
Cannabis Inc. (TSXV: NINE) (OTCQX: VRNDF) ("Delta 9") have
been completed, and Westleaf Labs has received the first order from
Delta 9 for an initial three-month supply of vape pens and
cartridges. This first order represents anticipated revenue of
~$740,000 starting as early as
January 2020.
"This is another important milestone in the development of
Westleaf, as we add the critical processing and manufacturing
component to our vertically integrated strategy," said Scott Hurd, President and CEO of Westleaf. "This
operationalizes a key component in the cannabis supply chain and
one that we expect will see increase in demand as we enter Cannabis
2.0, and the legalization of a myriad of new products."
The White-Label Agreement provides for Westleaf Labs to produce
a minimum of ~$4 million of white
labelled cannabis derivative products, with the option to increase
to $16 million per annum. The
one-year agreement was announced on July
24th and Westleaf Labs received its Health Canada
Standard Processing Licence on October
11th and is set to begin processing.
Highlights:
- Delta 9 Order –The initial order represents anticipated
revenue of ~$740,000 over three
months. The one-year deal commits Delta 9 to acquire a minimum of
~$4 million with an option to
increase up to ~$16 million per
year.
- Enhanced Product Selection for Retail - The White-Label
Agreement is expected to create value added products to be sold
through both Delta 9's retail stores in Manitoba, through Westleaf's wholly-owned
Prairie Records stores in Saskatchewan as well as through provincial
wholesalers.
- Safe and Regulated Products – The production of vape
pens and cartridges at The Plant by Westleaf Labs, as well
as the entire Westleaf supply chain, will be highly regulated and
adhere to the strictest safety standards of Health Canada.
With the onset of Cannabis 2.0 and the legalization of a wide
variety of new derivative cannabis products, Westleaf is expecting
strong industry wide demand for efficient and high-quality
extraction, processing and product manufacturing to meet the needs
of the new product manufacturers.
About Westleaf Inc.
Westleaf is a Canadian cannabis company focused on cannabis
brands, extraction and production of derivatives, wholly owned
retail, as well as cannabis cultivation. The Company's Health
Canada licensed extraction and processing facility, The
Plant, is expected to produce high quality and consistent
cannabis derivatives and consumables, both for Westleaf's in-house
brands as well as white label products. Westleaf's retail concept,
Prairie Records, leverages the instinctual tie between
recreational cannabis and music with stores operating or in
development across Western Canada. The Company's
Thunderchild cultivation facility is scheduled for
completion at the end of this year.
Neither 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
Cautionary Statements
This news release contains "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of the applicable Canadian
securities legislation. All statements, other than statements of
historical fact, are forward-looking statements and are based on
expectations, estimates and projections as at the date of this news
release. Any statement that involves discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions, future events or performance (often but not always
using phrases such as "expects", or "does not expect", "is
expected", "anticipates" or "does not anticipate", "plans",
"budget", "scheduled", "forecasts", "estimates", "believes" or
"intends" or variations of such words and phrases or stating that
certain actions, events or results "may" or "could", "would",
"might" or "will" be taken to occur or be achieved) are not
statements of historical fact and may be forward-looking
statements. In this news release, forward-looking statements relate
to, among other things, (i) retail cannabis stores that Westleaf
plans to open; (ii) the construction of Westleaf's production
facilities and the timing for completion of same; (iii)
commencement of production at Westleaf's production facilities;
(iv) commencement of operations at the Plant, its capacity to
manufacture and extract cannabis derivative products and
corresponding scalability, its ability to provide a competitive
advantage by being adaptive to consumer needs and material revenue
that may be derived from its operations; (v) products and brands to
be produced from Westleaf's production facilities and the products
and services that Westleaf plans to offer; (vi) the anticipated
benefits and impact of the production and sale of cannabis
derivative products on Westleaf; (vii) anticipated revenue from the
White-Label Agreement; and (ix) the processing and production
capabilities of Westleaf's extracting and cultivation facilities.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are
not limited to: risks relating to the ability to obtain or maintain
licenses to retail cannabis products; review of Westleaf's
production facilities by Health Canada and receipt of licenses from
Health Canada in respect thereof; future legislative and regulatory
developments involving cannabis, including the passing of
regulations regarding derivative cannabis products; inability to
access sufficient capital from internal and external sources,
and/or inability to access sufficient capital on favourable terms;
the labour market generally and the ability to access, hire and
retain employees; the ability of Westleaf's production facilities
to operate and perform at peak production; general business,
economic, competitive, political and social uncertainties; the
satisfaction of conditions precedent under Westleaf's credit
facilities; timing and completion of construction of Westleaf's
production facilities and retail locations; and the delay or
failure to receive board, ATB Financial or regulatory approvals,
including any approvals of the TSX Venture Exchange, as applicable.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on the forward-looking
statements and information contained in this news release. Except
as required by law, Westleaf assume no obligation to update the
forward-looking statements of beliefs, opinions, projections, or
other factors, should they change, except as required by
law.
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SOURCE Westleaf Inc.
