Sugarbud Announces Toll Processing Agreement with Adastra Labs and Provides Operational and Corporate Updates
CALGARY, Alberta, Feb. 11, 2020 (GLOBE NEWSWIRE) — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) (“Sugarbud“) is pleased to announce that it has entered into a toll processing agreement with Adastra Labs Holdings Ltd. (CSE: XTRX) (“Adastra“).
Under the terms of the agreement, Adastra will supply Sugarbud with standard processing services for a minimum of 1,200,000 grams of premium dried cannabis flower and trim over a period of 12 months beginning June 1, 2020, subject to licensing and regulatory approvals.“Building upon the supply agreement we signed with Adastra in September 2019, we are pleased to be expanding our relationship and look forward to collaborating with the entire team to develop novel value-added inhaled extract formulations and formats to complement our premium dried cannabis products,” stated John Kondrosky, CEO of Sugarbud.Andy Hale, CEO of Adastra, stated, “This latest agreement further develops our growing partnership with Sugarbud who will provide high-quality cannabis that will be used to create premium extract products. We look forward to our continuing collaboration with the team at Sugarbud.”“Sugarbud’s near term product leadership strategy is to leverage its existing licensed cultivation and production facility to produce exceptional premium dry flower and inhalable derivatives such as pre-rolls and concentrates. Our strategy and approach to revenue and value generation is driven by a relentless focus on providing a high-quality product that adult recreational consumers seek, through targeted, controlled commercial expansion,” added Mr. Kondrosky.Operational UpdateSugarbud expects its first harvest will occur on or about March 2, 2020. “Our first harvest represents a major milestone for Sugarbud and we are all very pleased with the progress our team in Stavely is making with the quality of our first crop and with the operating level of our facility overall,” stated Mr. Kondrosky.“As a craft cultivator we aspire to be known first and foremost as a trusted world-class producer of exceptional high-quality cannabis. As a premium product provider, focused on product leadership and customer satisfaction, we also believe that the heart and soul of everything we do starts with what we grow. With a robust and diversified genetic portfolio, and an unwavering commitment to high quality cultivation, we have all ingredients necessary to deliver relevant and category leading products to our future adult recreational customers. At Sugarbud we believe that positive customer experience is everything and we are passionate about delivering products that both delight and exceed expectations,” continued Mr. Kondrosky.Sugarbud expects to submit an amendment to expand upon their existing Medical Sales license to permit the sale of interprovincial adult recreational dried cannabis products to authorized provincial retailers in February 2020. Sugarbud plans to launch its first adult recreational products in late Q3 2020.Significant Market Opportunity Remains