CALGARY, AB, Aug. 27, 2020 /CNW/ - Sugarbud Craft Growers
Corp. (TSXV: SUGR) (TSXV: SUGR.WT) (TSXV: SUGR.WS) (TSXV: SUGR.DB)
("Sugarbud" or the "Company") is pleased to announce
that, as part of the previously announced contract manufacturing
agreement (the "Agreement"), it has formally started the
final development and qualification of its additive-free,
full-spectrum vape cartridges with Heritage Cannabis Holdings Corp.
(CSE: CANN) ("Heritage").
Under the terms of the Agreement, Heritage will continue to
provide Sugarbud with extraction, formulation and production
services for the development of its pre-filled vape cartridges
utilizing proprietary, additive-free formulations.
"Our high quality, additive-free, full-spectrum vape products
contain dried cannabis as the sole ingredient and are a natural and
logical extension of our inhaled product strategy. Sugarbud vape
products will 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 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.
"We are very pleased to be working with Sugarbud on the
production of full-spectrum vape cartridge products to support its
cannabis 2.0 strategy," commented Clint
Sharples, CEO of Heritage. "As Sugarbud's manufacturing
partner, Heritage will produce high-demand, full-spectrum cannabis
oil products using no harmful additives, flavours or carrier oils,
and will maintain consistency in the strain profile between
Sugarbud's craft cannabis and the final products."
The Company expects to apply to Health Canada for an amendment
to its sales license to permit the direct sale of cannabis extracts
in early Q4 of 2020.
Filing of Q2 2020 Financials
Sugarbud is also pleased to announce the filing of its Q2 2020
unaudited condensed consolidated interim financial statements
("Financial Statements") for the three months ended
June 30, 2020 and related
management's discussion and analysis ("MD&A").
Sugarbud's Financial Statements and related MD&A are available
on SEDAR at www.sedar.com and on Sugarbud's website
at www.sugarbud.ca.
"The successful closing of the non-dilutive First Calgary
facility and the fully-subscribed Convertible Debenture offering
not only significantly improved Sugarbud's working capital
position, but is a clear vote of confidence in the Company's
management and its focused strategy on producing premium
select-batch cannabis products," stated Chris Moulson, CFO of Sugarbud.
"Together with our established lease financing relationship,
these financings put Sugarbud on track to deliver on its stated
operational and commercial scale-up plans," concluded Mr.
Moulson.
About Sugarbud
Sugarbud is an Alberta-based,
consumer-driven 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.
http://www.sugarbud.ca/
About Heritage
Heritage Cannabis Holdings Corp. is a vertically integrated
cannabis company that owns two Health Canada approved licenced
producers, Voyage Cannabis Corp. and CannaCure Corp., both of which
also have industrial hemp licenses. Additionally, Voyage recently
received its sales license from Health Canada, and Heritage will be
launching its own products in the BC, AB, and MB markets in summer
2020, with other provinces to follow. Working under its licenses,
Heritage has two additional subsidiaries, Purefarma Solutions, that
provides extraction services, and a Medical Services Division which
is focused on cannabis based medical solutions. Heritage as the
parent company, provides the synergies and resources for its
subsidiaries to advance its medical and adult use products and
services 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, 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; 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.
SOURCE Sugarbud Craft Growers Corp.