Allied Corp Announces Production Results Showcasing Low Cost Per Gram, High Yield and Large Cannabinoid Percentages Positioning the Company for International Stage
KELOWNA, British Columbia, April 15, 2021 (GLOBE NEWSWIRE) — Allied Corp. (“Allied” or the “Company”) (OTCQB: ALID) an international medical company focused on creating and providing health solutions to address today’s medical mental health issues is pleased to share an analysis of the production data from its first harvests. Allied continues to harvest weekly and add to this data set and analysis. The following data are based upon actual harvest numbers that were collected at the Allied Production Center in Colombia.
In addition to the increase in grams produced per square meter, the cannabinoid percentages showed an increase when produced in Colombia when compared to North America. In summary, the results showed an increased production yield, higher cannabinoid percentages, high quality and a low cost per gram production cost. Allied has now cultivated several successive harvests with repeatable results. These results can be described in the categories of Yield, Cannabinoid Potency, Quality, Cost, Frequency of Harvests.
Increased yield – approaching 1 kilogram per square meter
Allied has a proprietary approach that enables the high yield of its production output. Allied’s first harvest yielded 424 grams per square meter of production space. The second harvest, 612 grams per square meter and third and fourth harvest brought a yield of 684 grams and 893 grams respectively per square meter. The fifth and sixth harvest yielded 894 and 905 grams respectively per square meter. These data show that the Allied team, through its fine-tuned production approach is approaching the 1 kilogram per square meter goal of production output. Allied has been very purposeful to utilize the production space effectively.
Higher percentages of cannabinoids
Allied has received approval from the Colombian Ministry of Agriculture (“ICA”) for 20 out of 20 strains. It was reported by ICA that Allied was the first company to achieve this result. These strains have both non-psychoactive and psychoactive varieties that have been legally cultivated both in North America and now in the South America. The data collected showed that these strain profiles showed a significant increase in cannabinoid content when comparing the output from the North American cultivation environment with the South American cultivation environment. In Colombia, Allied has achieved repeatable THC cannabinoid percentages of 29.08% in the psychoactive varieties and CBD percentages of 24.64%. With the continuous quality improvement program at Allied, these percentages continue to increase.
Actual Cost – $0.05 cents per gram
Allied’s proprietary nutrient formulations and novel approach to production have proven to provide repeatable output at low cost with consistent quality. The data that are collected every week continues to add to the data set that is being used to calculate Allied’s low cost of production. Allied’s cost of production results have shown an average cost of production of $0.05 cents per gram. This presents a potential increased margin advantage to multi-state operators within the United States and wholesale buyers internationally. For National companies owning market share in markets with costs of production between $1.00 – $2.00, the Allied low-cost approach to production could enable these companies to claim additional margin in their supply chain.
Quality – achieving international standards
The proprietary Allied approach has been carefully crafted to meet European Pharmacopeia standards with zero pesticide use. A high level of quality has been built into every step of the production process. Every plant is counted and audited during every day of its life cycle. The data collected includes temperature, humidity, pest and disease management indicators. All harvested material is tested for physical identity, aflatoxins, foreign body count, total aerobic plate count, total yeast, e coli, salmonella, bile tolerant gram negative bacteria, cannabinoids, cadmium, lead, arsenic, mercury, terpenes and pesticides. All product is analyzed and approved based upon meeting thresholds for each of the testing parameters.
Frequency of Harvests: one season in Colombia enables consistent supply through weekly rolling harvests
Due to the advantages that the equatorial climate offers, Allied has adopted a weekly rolling harvest schedule. This presents consistent reliable supply at national level volumes. Allied can supply national level quantities to wholesale buyers in several international markets.
“We are very proud of the production team at Allied. The data collection and batch record analysis that we conduct every week enables us to continue to collect information and continue to improve our process, increase our production output and continue to analyze our cost per gram on a weekly basis,” says Calum Hughes CEO of Allied.
About Allied Corp. - https://allied.health/
Allied Corp. is an international health and technology company with a mission to address today’s medical issues by researching, creating and producing targeted health solutions. Allied Corp. uses an evidence-informed scientific approach to make this mission possible, through cutting-edge pharmaceutical research and development, innovative plant- and mushroom-based production and unique development of therapeutic products.
This press release contains “forward-looking information” within the meaning of applicable securities laws in Canada or “forward-looking statements” made pursuant to the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking information”). Forward-looking information may relate to the Company’s future outlook and anticipated events, plans or results, and may include information regarding the Company’s objectives, goals, strategies, future revenue or performance and capital expenditures, and other information that is not historical information. Forward-looking information can often be identified by the use of terminology such as “believe,” “anticipate,” “plan,” “expect,” “pending,” “in process,” “intend,” “estimate,” “project,” “may,” “will,” “should,” “would,” “could,” “can,” the negatives thereof, variations thereon and similar expressions. The forward-looking information contained in this press release is based on the Company’s opinions, estimates and assumptions in light of management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management currently believes are appropriate and reasonable in the circumstances. Forward-looking statements in this press release include the following: that Allied is leveraging the conditions in its Colombia grow operation and future Kelowna location to support its Research and Development efforts; that Allied is making important strides forward to position itself as a leader in the medical cannabis space, that Allied intends to make a series of proposed trademark and other intellectual property protection filings, as part of the Company’s Intellectual Property and Pharma Development (IP&PD) Strategy, statements respecting the joint development, manufacturing, and introduction of TACTICAL RELIEF™ branded products, and the use of proceeds from the offering of convertible notes.
There can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Risk factors that could cause actual results to differ materially from forward-looking information in this release include: the Company’s exposure to legal and regulatory risk; the effect of the legalization of adult-use cannabis in Canada and Colombia on the medical cannabis industry is unknown and may significantly and negatively affect the Company’s medical cannabis business; that the medical benefits, viability, safety, efficacy, dosing and social acceptance of cannabis are not as currently expected; that adverse changes or developments affecting the Company’s main or planned facilities may have an adverse effect on the Company; that the medical cannabis industry and market may not continue to exist or develop as anticipated or the Company may not be able to succeed in this market; risks related to completion of the greenhouse construction in Colombia, risks related to market competition; risks related to the proposed adult-use cannabis industry and market in Canada and Colombia including the Company’s ability to enter into or compete in such markets; that the Company has a limited operating history and a history of net losses and that it may not achieve or maintain profitability in the future; risks related to the Company’s current or proposed international operations; risks related to future third party strategic alliances or the expansion of currently existing relationships with third parties; that the Company may not be able to successfully identify and execute future acquisitions or dispositions or successfully manage the impacts of such transactions on its operations; risks inherent to the operation of an agricultural business; that the Company may be unable to attract, develop and retain key personnel; risks resulting from significant interruptions to the Company’s access to certain key inputs such as raw materials, electricity, water and other utilities; that the Company may be unable to transport its cannabis products to patients in a safe and efficient manner; risks related to recalls of the Company’s cannabis products or product liability or regulatory claims or actions involving the Company’s cannabis products; risks related to the Company’s reliance on pharmaceutical distributors; that the Company, or the cannabis industry more generally, may receive unfavourable publicity or become subject to negative consumer or investor perception; that certain events or developments in the cannabis industry more generally may impact the Company’s reputation or its relationships with customers or suppliers; that the Company may not be able to obtain adequate insurance coverage in respect of the risks that it faces, that the premiums for such insurance may not continue to be commercially justifiable or that there may be coverage limitations and other exclusions which may result in such insurance not being sufficient; that the Company may become subject to liability arising from fraudulent or illegal activity by its employees, contractors, consultants and others; that the Company may experience breaches of security at its facilities or losses as a result of the theft of its products; risks related to the Company’s information technology systems; that the Company may be unable to sustain its revenue growth and development; that the Company may be unable to expand its operations quickly enough to meet demand or manage its operations beyond their current scale; that the Company may be unable to secure adequate or reliable sources of necessary funding; risks related to, or associated with, the Company’s exposure to reporting requirements; risks related to conflicts of interest; risks related to fluctuations in foreign currency exchange rates; risks related to the Company’s potential exposure to greater-than-anticipated tax liabilities; risks related to the protection and enforcement of the Company’s intellectual property rights, or the intellectual property that it licenses from others; that the Company may become subject to allegations that it or its licensors are in violation of the intellectual property rights of third parties; that the Company may not realize the full benefit of the clinical trials or studies that it participates in; that the Company may not realize the full benefit of its licenses if the licensed material has less market appeal than expected and the licenses may not be profitable; as well as any other risks that may be further described in and the risk factors discussed in the Company’s continuous disclosure including its Management’s Discussion and Analysis sections in its Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K filed under the Company’s profile at www.sec.gov.
Although management has attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking information in this presentation, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information in this presentation. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers and viewers should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this release represents the Company’s expectations as of the date of this release or the date indicated, regardless of the time of delivery of the presentation. The Company disclaims any intention, obligation or undertaking to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.