Atlantic will be eligible to apply to operate five new retail locations in the province.
VANCOUVER, British Columbia, Sept. 04, 2019 (GLOBE NEWSWIRE) — Auxly Cannabis Group Inc. (TSX.V – XLY) (“Auxly” or the “Company“), together with its strategic partner, Atlantic Cultivation (“Atlantic”), is thrilled to announce today that it has entered into a comprehensive supply, development and retail agreement with the Province of Newfoundland and Labrador. The agreement marks a significant milestone in the establishment of Auxly’s presence in Atlantic Canada.
Under the terms of the agreement, Atlantic will be eligible to apply to operate five new retail locations in the province. Site scouting is currently underway and Atlantic plans to open its first retail store by Q1 2020.
Additionally, Auxly will supply to the Province of Newfoundland and Labrador up to 50 kg of dried flower (or equivalent derived products) in 2019, up to an additional 1,000 kg in 2020 and an option for up to another 1,000 kg in 2021.Atlantic has agreed to build a 110,000 square foot purpose-built facility in Kenmount Crossing, St. John’s, for cultivation, production and processing of high-quality cannabis.
Once fully constructed and operational, this facility will create 117 new jobs and will have the capacity to produce approximately 16,000 kg of cannabis annually. Auxly will subscribe for up to 19.9% of the issued and outstanding shares of Atlantic for a total of $2.5 million, which will be used to build out the five retail locations.
The Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry and Innovation, commented: “Attracting new investment and new industries to the province is important to the Government of Newfoundland and Labrador. This performance-based supply and production agreement with Atlantic Cultivation capitalizes on opportunities to diversify our economy, create wealth and contribute to sustainable employment. As we open the door to growth and export opportunities, we are taking another step in our goal to become a leader in the cannabis industry, nationally and internationally.” “We are extremely pleased to have finalized the agreement with the Province of Newfoundland and Labrador,” said Chris Crosbie, Chief Operating Officer of Atlantic. “We are excited to get started on building out the production facility and look forward to announcing the locations of our retail stores as we establish them.”
Hugo Alves, Chief Executive Officer of Auxly, added: “We are excited to continue to build on our partnership with Atlantic and reinforce our commitment to Atlantic Canada, where we are building meaningful cannabis businesses that have a positive impact on the region. We look forward to delivering high quality cannabis products and ultimately exceptional in-store experiences to the Newfoundland and Labrador community.” ON BEHALF OF THE BOARD“Chuck Rifici“ Chairman.
About Auxly Cannabis Group Inc. (TSX.V: XLY) (OTCQX: CBWTF)
Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly’s experienced team of industry first-movers and enterprising visionaries has secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading product research and development infrastructure in order to create trusted products and brands in an expanding global market.Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.
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Notice Regarding Forward Looking Information: This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the ability of the Company to supply product to the Province of Newfoundland and Labrador; Atlantic’s ability to build and operate a cannabis production facility and create new jobs; the ability of the Company and Atlantic to obtain and maintain Cannabis retail permits and stores and generate revenue from them; political change, future legislative and regulatory developments involving cannabis and cannabis products; and competition and other risks affecting the Company in particular and the cannabis industry generally.A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to, whether: the Company and/or Atlantic is able to maintain the necessary governmental and regulatory authorizations and permits to conduct business; and general economic, financial market, regulatory and political conditions in which the Company and Atlantic operate will remain the same. Additional risk factors are disclosed in the revised annual information form of the Company for the financial year ended December 31, 2017 dated May 24, 2018.New factors emerge from time to time, and it is not possible for management to predict all of those factors or 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 information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The purpose of forward-looking information is to provide the reader with a description of management’s expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
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