CALGARY, Alberta, Feb. 11, 2020 (GLOBE NEWSWIRE) — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) (“Sugarbud“) is pleased to announce that it has entered into a toll processing agreement with Adastra Labs Holdings Ltd. (CSE: XTRX) (“Adastra“).
Under the terms of the agreement, Adastra will supply Sugarbud with standard processing services for a minimum of 1,200,000 grams of premium dried cannabis flower and trim over a period of 12 months beginning June 1, 2020, subject to licensing and regulatory approvals.
“Building upon the supply agreement we signed with Adastra in September 2019, we are pleased to be expanding our relationship and look forward to collaborating with the entire team to develop novel value-added inhaled extract formulations and formats to complement our premium dried cannabis products,” stated John Kondrosky, CEO of Sugarbud.
Andy Hale, CEO of Adastra, stated, “This latest agreement further develops our growing partnership with Sugarbud who will provide high-quality cannabis that will be used to create premium extract products. We look forward to our continuing collaboration with the team at Sugarbud.”
“Sugarbud’s near term product leadership strategy is to leverage its existing licensed cultivation and production facility to produce exceptional premium dry flower and inhalable derivatives such as pre-rolls and concentrates. Our strategy and approach to revenue and value generation is driven by a relentless focus on providing a high-quality product that adult recreational consumers seek, through targeted, controlled commercial expansion,” added Mr. Kondrosky.
Sugarbud expects its first harvest will occur on or about March 2, 2020. “Our first harvest represents a major milestone for Sugarbud and we are all very pleased with the progress our team in Stavely is making with the quality of our first crop and with the operating level of our facility overall,” stated Mr. Kondrosky.
“As a craft cultivator we aspire to be known first and foremost as a trusted world-class producer of exceptional high-quality cannabis. As a premium product provider, focused on product leadership and customer satisfaction, we also believe that the heart and soul of everything we do starts with what we grow. With a robust and diversified genetic portfolio, and an unwavering commitment to high quality cultivation, we have all ingredients necessary to deliver relevant and category leading products to our future adult recreational customers. At Sugarbud we believe that positive customer experience is everything and we are passionate about delivering products that both delight and exceed expectations,” continued Mr. Kondrosky.
Sugarbud expects to submit an amendment to expand upon their existing Medical Sales license to permit the sale of interprovincial adult recreational dried cannabis products to authorized provincial retailers in February 2020. Sugarbud plans to launch its first adult recreational products in late Q3 2020.
Significant Market Opportunity Remains
Management believes that despite some of the headwinds present in the market today, significant opportunity remains for a focused company like Sugarbud to distinguish itself as a leader in the cannabis space by implementing a very disciplined product driven supply chain that begins and ends with the end customer in mind.
Sugarbud is pleased to announce the appointment of Mr. Chris Moulson LLB, MBA as V.P. of Finance and Chief Financial Officer of the Company effective February 11, 2020. Chris brings more than 25 years of experience in finance, business development, corporate law, commercial marketing and strategic planning roles to Sugarbud. Prior to Sugarbud, Mr. Moulson served as Chief Financial Officer of Polaris Seismic International, Canada’s leading international seismic exploration company, with operations across the Middle East and East Africa.
“Chris possesses critical skillsets that will undoubtably make a positive impact and contribute to our overall success moving forward,” stated Sugarbud CEO, John Kondrosky.
Mr. Brad Giblin has made a personal decision to step down from his positions as Sugarbud’s V.P. of Finance and Chief Financial Officer to return to the energy sector. “We are incredibly grateful for the leadership and many contributions Brad has made during his tenure with Sugarbud and we wish Brad nothing but the best in his future endeavors,” stated CEO, John Kondrosky. “We are also grateful for the time and effort Mr. Giblin took in order to ensure and facilitate a seamless transition between himself and his incoming replacement,” continued Mr. Kondrosky.
Sugarbud is a federally licensed Alberta based craft cannabis company, focused on the cultivation and production of genetically diverse, high quality, select-batch, ultra-premium cannabis products.
Adastra is a British Columbia-based publicly traded cannabis company and, through its wholly owned subsidiaries, Adastra Labs Inc. and Chemia Analytics Inc., is in the application process to become a Standard Processor and is licensed as an Analytical Testing Laboratory under the Cannabis Act administered by Health Canada, with licences to produce cannabis extracts and provide third party analytical testing services. These licences will further enable Adastra and its subsidiaries to produce, package, sell (wholesale), and export medically focused and recreational cannabis extract and concentrate products in Canada to other licensed entities and internationally in jurisdictions where medical cannabis extraction products are legal.
Chief Executive Officer
Sugarbud Craft Growers Corp.
Phone: (604) 499-7847
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 strategy and assessment of future plans, operations and cannabis cultivation, including the timing of first harvest; product quality; the launch of adult recreational products and the timing thereof; the toll processing agreement and partnership with Adastra; the timing of obtaining necessary approvals required to conduct the contemplated business of the supply agreements; future value-added cannabis product offerings of the Company, including pre-rolls and concentrates; and management changes. 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 approving an amendment to its dried cannabis sales licence to permit interprovincial sales, 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; 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; 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.
This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about Sugarbud’s operations, future cannabis production and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraph. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Sugarbud’s future business operations. Sugarbud disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
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.
Original Source and Content: https://www.globenewswire.com/news-release/2020/02/11/1982918/0/en/Sugarbud-Announces-Toll-Processing-Agreement-with-Adastra-Labs-and-Provides-Operational-and-Corporate-Updates.html