Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT, SUGR.WS,
SUGR.DB) ("
Sugarbud" or the
"
Company") is pleased to announce that it has
entered into a national product purchase and supply agreement (the
"
Supply Agreement"), for the Company’s Cannabis
2.0 products with CannMart Inc. ("
CannMart").
Sugarbud is also pleased to announce that, as
part of the previously announced contract manufacturing agreement
with Heritage Cannabis Holdings Corp. (CSE: CANN)
("Heritage") (the "Manufacturing
Agreement"), it has completed the final development and
qualification of its additive-free, 100% cannabis full-spectrum
vape cartridges.
Supply Agreement
Under the terms of the Supply Agreement,
CannMart will have the ability to purchase Sugarbud branded
cannabis extract products for subsequent national distribution and
sale to provincially/territorially authorized
distributors/retailers under their own sales license and Sugarbud
will process and package the Sugarbud branded craft cannabis
extract products on behalf of CannMart. The agreement with CannMart
is subject to customary regulatory, licensing and new product
notification requirements.
“Our entry into the adult use recreational
Cannabis 2.0 market in Canada is a major catalyst for the company
and we couldn’t be more excited to be partnering with CannMart to
accelerate our plans to bring our expanded Sugarbud Craft Cannabis
Collection to our target markets and consumers in Canada,” stated
Sugarbud CEO, John Kondrosky.
“Our partnership with CannMart is a very
significant step forward in the rapid evolution of our Company and
just another example of how we continue to focus and execute
against our strategic priorities and hit the milestones we have
laid out for the Company. Together with our previously launched
dried cannabis platform of products, our partnership with CannMart
both expands and accelerates our penetration into our core focus
markets,” concluded Mr. Kondrosky.
“We are pleased to welcome Sugarbud to our
portfolio as many companies are seeing added value in Namaste’s
distribution footprint,” said Meni Morim, CEO of Namaste
Technologies Inc. (TSXV: N) CannMart’s parent company. “We look
forward to working closely with our new partner to expand their
reach to Canadian cannabis consumers.”
Sugarbud now expects to be in a position to
begin shipping its Sugarbud branded cannabis extract products to
provincially/territorially authorized distributors/retailers by the
end of Q1 2021.
The Company’s agreement with CannMart also
covers the time between today’s announcement and when Sugarbud
expects to receive authorization from Health Canada to sell its
Cannabis extract products directly to provincially/territorially
authorized distributors/retailers and registered patients.
The Company expects approval for its own amended
sales license permitting the direct sale of cannabis extracts in
early Q3 of 2021.
Manufacturing Agreement
Under the terms of the previously announced
manufacturing agreement, Heritage will continue to provide Sugarbud
with extraction, formulation and production services for the
ongoing supply of its pre-filled vape cartridges utilizing
proprietary, additive-free 100% cannabis formulations. Additional
details are available in the Company's press release dated October
15, 2019.
READ HERE
"Our high quality, 100% cannabis vape products
are a natural and logical extension of our inhaled product
strategy. Sugarbud vape products 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 100% cannabis 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.
About Sugarbud
Sugarbud is an Alberta-based, consumer-driven
boutique 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.
READ CORPORATE INVESTOR DECK HERE
http://www.sugarbud.ca/
About CannMart
CannMart is a wholly owned subsidiary of Namaste
Technologies Inc. (TSX.N) a leading platform for cannabis products,
accessories, and education.
John Kondrosky Chief
Executive Officer Sugarbud Craft Growers Corp. Phone:
(604) 499-7847 E-mail: johnk@sugarbud.ca
Investor Relations
ContactChris MoulsonChief
Financial OfficerSugarbud Craft Growers Corp.Tel: (778)
388-8700E-mail: chrism@sugarbud.ca
Websites:
http://www.sugarbud.ca/
Address: 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 and CannMart; 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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