North Bud Farms Provides a Corporate Update
North Bud Farms Inc. (CNSX:NBUD.CN) (OTCQB:NOBDF) ("NORTHBUD" or the "Company") is pleased to provide shareholders with the following corporate update:
Cannabis Production Facility in Salinas, California
In late December we completed our first harvest at our Salinas, California cultivation facility. We harvested 2,687 plants that were included in the acquisition of the Qlora Group ("Qlora"). The Company anticipates completing testing and sale of the product in late January 2020, which will represent the first revenue generated by the Company in California. The Company has also completed an in-depth review and analysis of both the infrastructure and cultivation practices and will be implementing significant efficiencies over the course of the next four harvests. The Company anticipates continual harvests of 2,000-3,000 plants every 25 days, with quality and yield improving with each harvest. This product will be sold via wholesale agreements to existing Qlora clients in the interim as we prepare for the launch of NORTHBUD branded flower products in California in the third quarter of 2020.
"Despite challenges faced by the cultivation team during this period of transition, we are extremely excited to be harvesting our first crops and look forward to continual improvements as we implement procedural and infrastructure efficiencies," said Justin Braune, President of Bonfire Brands USA, a wholly owned subsidiary of NORTHBUD.
Cannabis Production Facility in Reno, Nevada
The Company is pleased to announce the completion of the first harvest of approximately 175 indoor grown plants. Upon the completion of testing and processing, the product will be distributed as NORTHBUD flower, pre-rolls and infused pre-rolls into selected Nevada dispensaries. The launching of NORTHBUD branded products into Nevada marks a significant milestone for the Company.
Status of Cultivation Licence Application for Cannabis Production Facility in Low, Quebec
On September 18, 2019, the Company received a confirmation of receipt of the site evidence package submitted in late August 2019. On November 22, 2019, the Company received a request for information from Health Canada (the "Request"). The Request was received within the 60-business day service window for feedback provided by the regulator. The Company is pleased to report that the Request was responded to in full in advance of the December 8 deadline. The Request did not contain any notices of deficiencies in the Company's cultivation licence application nor did it require the Company to make any modifications or changes to its facility.
On December 19, 2019 the Company received a subsequent follow-up request for information consisting of two questions which were responded to that same day, and on December 20, the Company received a request to clarify the roles of recently-hired employees in relation to the requested cultivation licence. This request was responded to in full on January 3, 2020. The Company has received no further communication from Health Canada.
The Company is confident that the approval process is on track and within comparable timelines experienced by other publicly-traded companies who have recently submitted evidence packages. At this time, the Company cannot predict when it will be granted a cultivation licence by Health Canada. The Company will update shareholders on any further progress on the application.
Annual General Meeting
The Company wishes to inform shareholders that it will hold its Annual General and Special Meeting at 1:00 p.m. ET on Monday, February 3, 2020 at the office of McMillan LLP, World Exchange Plaza, Suite 2000, Ottawa, Ontario. The Company will file the required information for the annual and special meeting under its issuer profile on SEDAR at www.sedar.com.
Staffing and Personnel
The Company is pleased to announce the hiring of Adam Shapero as General Counsel. Adam comes to NORTHBUD after serving as Director of Risk Management, Corporate Secretary and Senior Counsel at Origin House (CNSX:OH.CN), who was recently acquired by Cresco Labs (CNSX:CL.CN) in a transaction valued at ~ $520 million. "We are extremely pleased to welcome Adam to our team," said Sean Homuth, CEO of NORTHBUD. "His first-hand experience in the Cannabis industry will add tremendous value to our team while reducing our reliance on external counsel."
About North Bud Farms Inc.
North Bud Farms Inc., through its wholly owned subsidiary GrowPros MMP Inc., is pursuing a license under The Cannabis Act. The Company has built a state-of-the-art purpose-built cannabis production facility located on 135 acres of Agricultural Land in Low, Quebec, Canada. NORTHBUD through its wholly owned U.S. subsidiary, Bonfire Brands USA has acquired cannabis production facilities in California and Nevada. The Salinas, California property is located on 11 acres which currently consists of a 300,000 sq. ft. of licensable greenhouse space with 60,000 sq. ft. actively cultivating cannabis and a 2,000 sq. ft. building licensed for distribution. The Reno, Nevada property is located on 3.2 acres of land which was acquired through the acquisition of Nevada Botanical Science, Inc. a world class cannabis production, research and development facility with 5,000 sq. ft. of indoor cultivation which holds medical and adult use licenses for cultivation, extraction and distribution.
For more information visit: www.northbud.com
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Certain statements and information included in this press release that, to the extent they are not historical fact, constitute forward-looking information or statements (collectively, "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements, including, but not limited to, those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "should" and similar expressions to the extent they relate to the Company or its management.
Forward-looking statements, including, but not limited to, those regarding the success of the Company's licence application in Quebec, future sales of cannabis in California and Nevada, plant harvest yields at the Company's California and Nevada operations, conditions in the cannabis market, the Company entering agreements in connection with the B2B supply of cannabis and the Company's transition into a revenue generating operational phase of development are based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the risk factors included in the Company's final long form prospectus dated August 21, 2018, which is available under the Company's SEDAR profile at www.sedar.com. Accordingly, readers should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statements to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws. This news release does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
North Bud Farms Inc.
VP, IR & Communications
Office: (855) 628-3420 ext. 3