CALGARY, Oct. 15, 2019 /CNW/ - Sugarbud Craft Growers
Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased to
announce that it has entered into a strategic supply and contract
manufacturing agreement with Heritage Cannabis Holdings Corp. (CSE:
CANN) ("Heritage").
Under the terms of the agreement, Sugarbud will supply Heritage
with a minimum of 100,000 grams of premium dried cannabis per month
for an initial term of twenty four months commencing May 1, 2020, and Heritage will provide
extraction, formulation and production services to Sugarbud for the
development of pre-filled vape cartridges, utilizing proprietary
additive-free formulations created by Sugarbud, all subject to
customary licensing and regulatory approvals.
"Our agreement with Heritage is the second major supply
agreement we have announced in the last month and together with the
previously announced supply agreement with Adastra Labs is another
exciting step forward for Sugarbud and our overall commercial
business plan," stated Mr. Kondrosky, CEO of Sugarbud.
With new and expanded cannabis regulations coming into effect in
Canada this October, Canadian
consumers will have access to a wider range of new cannabis
derivative products and formats. Sugarbud expects that high quality
vape cartridges and pens will become a significant catalyst for
future growth.
"The supply and contract manufacturing agreement with Heritage
is a significant milestone for Sugarbud as we continue to focus and
execute against our overall product leadership strategy in the
inhalable cannabis category," stated John
Kondrosky.
"We are confident that our partnership with Heritage will equip
Sugarbud to deliver high quality products with safety and integrity
as we prepare to introduce our proprietary premium vape pen
formulations to the Canadian adult-use recreational and medical
cannabis markets," Mr. Kondrosky continued.
"We are pleased to have this agreement with Sugarbud as they
embark on their first grow of high-quality premium cannabis. This
allows us to work with them from the beginning to align their grow
and strains with what we know provides the best results with our
processes," stated Clint Sharples,
CEO of Heritage. "Sugarbud joins the group of Licenced Growers
supplying Heritage with high quality cannabis for our extraction
needs. As the market evolves, we believe quality will be the
differentiating factor for the end user."
About Sugarbud
Sugarbud is a federally licensed Alberta-based publicly traded cannabis company
focused on the cultivation and production of high-quality premium
cannabis, and product leadership through the development,
production and distribution of value-added cannabis products in
Canada.
http://www.sugarbud.ca/
About Heritage
Heritage is a vertically integrated cannabis provider. Heritage
is a licensed producer of cannabis through its subsidiaries Voyage
Cannabis Corp. and CannaCure Corp. Heritage provides extraction
services through its subsidiary Purefarma Solutions and cannabis
based medical solutions through its subsidiary BriteLife Sciences.
Heritage is focused on advancing its products and services to
compete both domestically and internationally.
http://www.heritagecann.com/
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; product quality; the supply
agreement and partnership with Heritage; the timing of obtaining
necessary approvals required to conduct the contemplated business
of the supply agreement; future value-added cannabis product
offerings of the Company, including proprietary vape pen
formulations; legalization of broader spectrum cannabis products;
and participation in the market for such products. 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, demand for
Sugarbud's and Heritage'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; substantial and increasing
regulation and uncertainty related to the regulation and taxation
of vaporizer products; 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; the scientific community's
lack of information regarding the long-term health effects of
electronic cigarettes, vaporizers and e-liquids; 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; risks associated with the
e-cigarette, vaporizer and e-liquid industry in general; actions
and initiatives of federal and provincial governments and changes
to government actions, initiatives and policies and the execution
and impact thereof; and the size of the global e-cigarette and
vaping market; 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. 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.
SOURCE SugarBud Craft Growers Corp.