VANCOUVER, Feb. 21, 2018 /CNW/ - Canopy Growth Corporation
("Canopy Growth") (TSX:WEED) and Sunniva Inc.
("Sunniva") (CSE:SNN)
(OTCQX:SNNVF), a North American provider of medical
cannabis products and services, are pleased to announce they have
signed a definitive supply agreement (the "Agreement")
whereby Sunniva, through its wholly-owned subsidiary in
Canada, Sunniva Medical Inc.
("SMI"), has committed to sell Canopy 45,000 kilograms of
premium quality cannabis annually over an initial two year period
commencing in calendar Q1 2019.
Under the terms of the Agreement, Canopy Growth will purchase up
to 45,000 kilograms of dried cannabis annually. Canopy Growth
and Sunniva will share in the revenues as product is sold through
Canopy Growth's distribution network including its online
marketplace, Tweed Main Street and via provincial distribution
channels. The revenue share will be based on the strain, sales
channel and other relevant factors. The Agreement is subject
to SMI receiving its licence from Health Canada, which is currently
in the final review stage, and completing the Sunniva Canada
Campus- a 700,000 square foot GMP greenhouse facility in
British Columbia, Canada.
"This Agreement represents a significant milestone for Sunniva,"
said Leith Pedersen, President,
Sunniva. "Providing the supply of premium cannabis products under
this Agreement allows Sunniva to accelerate the execution of our
business plan and distribution strategy."
"Our focus in the near-term is to build a sustainable and
profitable business as we develop the Sunniva brand. We expect to
accomplish this by becoming a low-cost, high-quality producer of
medicinal cannabis via large-scale purpose-built production
facilities which are compliant with good manufacturing practices.
By establishing a strategic partnership with Canopy Growth and
allocating a significant portion of our production, we de-risk our
business model. This Agreement evidences the significant potential
of our business strategy."
Mark Zekulin, President of Canopy
Growth commented, "We are very excited to announce this Agreement
with Sunniva and welcome such a successful and impressive partner
to the CraftGrow line. This Agreement further establishes our
commitment to providing high-quality cannabis products to Canadian
consumers. We look forward to working with Sunniva and their
management team and anticipate a successful relationship that will
be beneficial for both companies."
About Sunniva Inc.
Sunniva, through its subsidiaries,
is a vertically integrated medical cannabis company operating in
the world's two largest cannabis markets – Canada and California – where we are committed to
delivering safe, high-quality products and services at scale. Our
business vision is to become the lowest cost, highest quality
cannabis producer in the markets we serve. We will accomplish this
by building large scale purpose-built cGMP greenhouses, offering
better quality assurance with cannabis products free from
pesticides, providing better patient and doctor access to cannabis
education, and sourcing better therapeutic delivery devices.
Sunniva management and board of directors have a proven track
record for creating significant shareholder value both in the
healthcare and biotech space.
Sunniva operates through its wholly owned
subsidiaries:
Sunniva Medical Inc. ("SMI") - SMI is a late stage ACMPR
applicant in final review and is building the Sunniva Canada
Campus, 700,000 square feet of purpose-built cGMP complaint
greenhouse facilities to be located in British Columbia. The total Campus is expected
to produce over 100,000 kg of premium medical cannabis a year and
over 25,000 kg of trim used for extraction. The facility will
produce pesticide free products and will convert trim to extracted
products such as cannabis oil. The oil will be used for drug
delivery formats such as capsules, dissolvable strips, vaporization
cartridges, tinctures and creams. Sunniva anticipates to break
ground in early 2018.
CP Logistics, LLC ("CPL") – Through CPL, Sunniva has
commenced construction of the Sunniva California Campus,
state-of-the-art, purpose-built greenhouse facilities in
Cathedral City, California. The
Sunniva California Campus is planned in two phases and has been
designed to comply with current good manufacturing practices
("cGMP"). Phase 1 is designed to be 325,000-square feet
producing in excess of 60,000 kg of premium cannabis a year. The
total campus is expected to produce over 100,000 kg of premium
medical cannabis a year after Phases 1 and 2 are complete. At this
facility, it is estimated 30% of all product will be used for
higher margin extracted products and will be produced free from the
pesticides commonly used within today's industry.
Natural Health Services Ltd. ("NHS") - NHS owns and
operates a network of 8 medical clinics in Canada specializing in medical cannabis under
Access to Cannabis for Medical Purposes Regulations. NHS
connects patients with safe and effective medical cannabis products
through Licensed Producers ("LPs"). NHS has in-house
physicians and nurse practitioners specializing in the
endocannabinoid system providing expert consultation, education,
and recommendations for patients. NHS' proprietary technology
infrastructure assists physicians, patients and LPs to comply with
the rules of Health Canada. NHS has more than 129,000 active
medical documents outstanding and 93,000 active patients.
Full-Scale Distributors, LLC ("FSD") - FSD, through its
brand, Vapor Connoisseur, is a provider of custom, private-label
vaporizers and accessories. FSD currently serves the needs of over
80 brands in the North American marketplace. Vapor Connoisseur is
recognized for its high quality and innovative vaporization
devices. Products are tailored to client needs, ensuring both
safety and reliability and FSD will continue to provide these
services in coordination with the large supply from both Sunniva
Campuses.
For more information please visit: www.sunniva.com
About Canopy Growth Corporation
Canopy Growth is a
world-leading diversified cannabis and hemp company, offering
distinct brands and curated cannabis varieties in dried, oil and
Softgel capsule forms. From product and process innovation to
market execution, Canopy Growth is driven by a passion for
leadership and a commitment to building a world-class cannabis
company one product, site and country at a time.
Canopy Growth has established partnerships with leading sector
names including cannabis icon Snoop Dogg, breeding legends DNA
Genetics and Green House seeds, and Fortune 500 alcohol leader
Constellation Brands, to name but a few. Canopy Growth
operates seven cannabis production sites with over 1 million square
feet of production capacity, including over 500,000 square feet of
GMP-certified production space. The Company has operations in seven
countries across four continents. The Company is proudly dedicated
to educating healthcare practitioners, conducting robust clinical
research, and furthering the public's understanding of cannabis,
and through its partly owned subsidiary, Canopy Health Innovations,
has devoted millions of dollars toward cutting edge,
commercializable research and IP development. Through partly owned
subsidiary Canopy Rivers Corporation, the Company is providing
resources and investment to new market entrants and building a
portfolio of stable investments in the sector. From our historic
public listing to our continued international expansion, pride in
advancing shareholder value through leadership is engrained in all
we do at Canopy Growth.
For more information please visit www.canopygrowth.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
This press release contains forward-looking statements within
the meaning of applicable securities laws. All statements that are
not historical facts, including without limitation, statements
regarding future estimates, plans, programs, forecasts,
projections, objectives, assumptions, expectations or beliefs of
future performance, statements regarding Sunniva's plan to
cultivate, produce and distribute a broad range of solutions
focused on patients' needs and Sunniva's plans, timing and
estimates of production for its facilities, are "forward-looking
statements." Forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "estimates", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
events or developments to be materially different from any future
results, events or developments expressed or implied by such
forward looking statements. Such risks and uncertainties include,
among others, the risk factors included in Sunniva's final
prospectus dated November 16, 2017
(the "Prospectus"), including without limitation, dependence on
obtaining and maintaining regulatory approvals, including acquiring
and renewing state, local or other licenses and any inability to
obtain all necessary governmental approvals, licenses and permits
to complete construction of its proposed facilities in a timely
manner; engaging in activities which currently are illegal under US
federal law and the uncertainty of existing protection from U.S.
federal or other prosecution; regulatory or political change such
as changes in applicable laws and regulations, including U.S.
state-law legalization, particularly in California, due to inconsistent public
opinion, perception of the medical-use and adult use marijuana
industry, bureaucratic delays or inefficiencies or any other
reasons; any other factors or developments which may hinder market
growth; Sunniva's limited operating history and lack of historical
profits; reliance on management; and the effect of capital market
conditions and other factors on capital availability; competition,
including from more established or better financed competitors; and
the need to secure and maintain corporate alliances and
partnerships, including with customers and suppliers. Readers are
encouraged to the review the section titled "Risk Factors" in the
Prospectus and other disclosure documents on www.sedar.com. These
factors should be considered carefully and readers are cautioned
not to place undue reliance on such forward-looking statements.
Although Sunniva has attempted to identify important risk factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other risk factors that cause actions, events or
results to differ from those anticipated, estimated or intended.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in forward-looking
statements. Sunniva assumes no obligation to update any
forward-looking statement, even if new information becomes
available as a result of future events, new information or for any
other reason except as required by law.
SOURCE Sunniva Inc.