CALGARY, Aug. 2, 2019 /CNW/ - SugarBud Craft Growers
Corp. (TSXV:SUGR, SUGR.WT) ("SugarBud" or the "Company") is
pleased to provide a comprehensive update on the progress of the
Stavely, AB facility construction,
licensing status and corporate developments, including management
changes.
Construction and Licensing Update
Stavely, AB Facility
Construction of Phase 1a of our 30,000-square-foot Stavely indoor facility is now substantially
complete and fully occupied. Phase 1a includes 2 dedicated flower
rooms with a combined annual cultivation design capacity of between
3,300 – 3,890 kg per year. Regulatory approval for Phase 1a is
expected to occur in Q3 2019. Our operating team in Stavely is currently engaged in the final site
preparations necessary to support our initial scale up cultivation
activities following receipt of our license.
"We are pleased with the progress that our operational and
regulatory teams are making in preparation for our initial scale up
activities. The teams continue to execute against our plan very
well and we remain confident that we are on track to receive our
initial cultivation license in Q3 of this year," said John Kondrosky, Chief Executive Officer of
SugarBud.
SugarBud is also in the process of finalizing plans to complete
the final fit out and licensing of the remaining 6 flower rooms at
the Stavely Facility. Phase 1b and 1c
encompass 3 additional flower rooms each, which will further expand
the facility's cultivation design capacity by an additional 9,930 –
11,674 kg. At full operational levels the total facility
cultivation design capacity for Phase 1 is expected to be between
13,230 – 15,565 kg per year.
Primary construction of these additional 6 rooms is complete and
the remaining fit out will encompass the final installation of our
vertical racking, irrigation, HVAC, environmental control and
lighting systems. SugarBud plans to submit the license amendments
for Phase 1b and 1c in early Q1 of
2020.
Corporate Update
Jeff Swainson, SugarBud's Chief
Financial Officer, has made a personal decision to step down from
his position effective as of today. SugarBud's Chairman,
Dan Wilson, will assume the role of
interim CFO. John Kondrosky, stated,
"We are incredibly grateful for the leadership and many
contributions Jeff has made to the success of SugarBud up to this
point and we wish Jeff nothing but the best in his future
endeavors."
Mr. Joseph Dietrich has resigned as a director of SugarBud
as of today but will continue to contribute to the organization as
a Special Advisor. Chairman, Dan
Wilson, stated "We would like to take this opportunity to
thank Joseph for all of his hard work and contributions to SugarBud
as a member of the Board of Directors, and look forward to working
with Joseph in his new capacity to advance the SugarBud vision and
mission."
SugarBud is pleased to announce that Bob
Lawrence has joined SugarBud as Vice President of
Operations.
Mr. Lawrence joins SugarBud with more than 20 years of
experience in the premium and craft segments of the highly
regulated and competitive brewing industry. Prior to joining
SugarBud, Mr. Lawrence was the Senior Vice President of Operations
for the PEI Brewing Company. "As we continue to build and expand
our team, we look for passionate and driven individuals that embody
the SugarBud values and commitment to high-quality products and
services," said John Kondrosky,
Chief Executive Officer of SugarBud. "Operating efficiencies and
discipline are critical to the success of SugarBud, and Bob's
demonstrated leadership and experience will most certainly
have an immediate and positive impact on our operating results
moving forward."
About SugarBud
SugarBud is an Alberta-based
publicly traded cannabis company engaged in the development,
acquisition, production and distribution of cannabis in
Canada.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More
particularly, and without limitation, this news release contains
statements concerning: the Company's assessment of future plans and
operations; the receipt of a cultivation license from Health Canada
and the timing thereof; the cultivation of cannabis at the
Stavely facility; construction of
additional flower rooms and the scale thereof; estimates regarding
cannabis crop capacity, yield and frequency in respect of the
initial phase of the facility and subsequent phases; cultivation
equipment and technologies; management changes; and operating
efficiencies. 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 the Company that include, but are not
limited to, the timely receipt of all required regulatory and
third-party approvals, including cultivation and sales licenses
from Health Canada. Forward-looking statements are subject to a
wide range of risks and uncertainties, and although the Company
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:
regulatory and third party approvals, including receipt of
cultivation and sales licenses from Health Canada, not being
obtained in the manner or timing anticipated; 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 the Company with securities
regulatory authorities. Please refer to the Company's annual
information form ("AIF") for the year ended December 31, 2017 and management's discussion and
analysis ("MD&A") for the three months ended March 31, 2019 for additional risk factors
relating to the Company. The AIF and MD&A can be accessed under
the Company's profile on www.sedar.com.
This news release contains future-oriented financial information
and financial outlook information (collectively, "FOFI") about
SugarBud's prospective results of operations, future cannabis
production capacity and operating efficiencies, all of which are
subject to the same assumptions, risk factors, limitations, and
qualifications as set forth in the above paragraphs. 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, the Company 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.