Sugarbud enters into Strategic Supply and Contract Manufacturing Agreement with Heritage Cannabis
CALGARY, Alberta, Oct. 15, 2019 (GLOBE NEWSWIRE) — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) (“Sugarbud“) is pleased to announce that it has entered into a strategic supply and contract manufacturing agreement with Heritage Cannabis Holdings Corp. (CSE: CANN) (“Heritage“).
Under the terms of the agreement, Sugarbud will supply Heritage with a minimum of 100,000 grams of premium dried cannabis per month for an initial term of twenty four months commencing May 1, 2020, and Heritage will provide extraction, formulation and production services to Sugarbud for the development of pre-filled vape cartridges, utilizing proprietary additive-free formulations created by Sugarbud, all subject to customary licensing and regulatory approvals.
”Our agreement with Heritage is the second major supply agreement we have announced in the last month and together with the previously announced supply agreement with Adastra Labs is another exciting step forward for Sugarbud and our overall commercial business plan,” stated Mr. Kondrosky, CEO of Sugarbud.
With new and expanded cannabis regulations coming into effect in Canada this October, Canadian consumers will have access to a wider range of new cannabis derivative products and formats. Sugarbud expects that high quality vape cartridges and pens will become a significant catalyst for future growth.“The supply and contract manufacturing agreement with Heritage is a significant milestone for Sugarbud as we continue to focus and execute against our overall product leadership strategy in the inhalable cannabis category,” stated John Kondrosky.“We are confident that our partnership with Heritage will equip Sugarbud to deliver high quality products with safety and integrity as we prepare to introduce our proprietary premium vape pen formulations to the Canadian adult-use recreational and medical cannabis markets,” Mr. Kondrosky continued.“We are pleased to have this agreement with Sugarbud as they embark on their first grow of high-quality premium cannabis. This allows us to work with them from the beginning to align their grow and strains with what we know provides the best results with our processes,” stated Clint Sharples, CEO of Heritage. “Sugarbud joins the group of Licenced Growers supplying Heritage with high quality cannabis for our extraction needs. As the market evolves, we believe quality will be the differentiating factor for the end user.”About Sugarbud
Sugarbud is a federally licensed Alberta-based publicly traded cannabis company focused on the cultivation and production of high-quality premium cannabis, and product leadership through the development, production and distribution of value-added cannabis products in Canada.
Heritage is a vertically integrated cannabis provider. Heritage is a licensed producer of cannabis through its subsidiaries Voyage Cannabis Corp. and CannaCure Corp. Heritage provides extraction services through its subsidiary Purefarma Solutions and cannabis based medical solutions through its subsidiary BriteLife Sciences. Heritage is focused on advancing its products and services to compete both domestically and internationally.
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Sugarbud Craft Growers Corp.
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Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning: Sugarbud’s assessment of future plans, operations and cannabis cultivation; product quality; the supply agreement and partnership with Heritage; the timing of obtaining necessary approvals required to conduct the contemplated business of the supply agreement; future value-added cannabis product offerings of the Company, including proprietary vape pen formulations; legalization of broader spectrum cannabis products; and participation in the market for such products. 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 Sugarbud. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Sugarbud 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: currently contemplated expansion and development plans may cease or otherwise change; production of cannabis may be lower than expected, Sugarbud may not obtain the required approvals from Health Canada, demand for Sugarbud’s and Heritage’s products may be lower than anticipated; results of production and sale activities; results of scientific research; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; failure to maintain consumer brand recognition and loyalty of customers; substantial and increasing regulation and uncertainty related to the regulation and taxation of vaporizer products; reliance on relationships with wholesalers and retailers for distribution of products and failure to maintain strategic business relationships; intense competition, including from illicit sources; uncertainty and continued evolution of markets; product liability litigation; the scientific community’s lack of information regarding the long-term health effects of electronic cigarettes, vaporizers and e-liquids; reliance on information technology; infringement on intellectual property; failure to benefit from partnerships; sensitivity of end-customers to increased sales taxes and economic conditions; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; risks associated with the e-cigarette, vaporizer and e-liquid industry in general; actions and initiatives of federal and provincial governments and changes to government actions, initiatives and policies and the execution and impact thereof; and the size of the global e-cigarette and vaping market; 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 Sugarbud with securities regulatory authorities. Please refer to Sugarbud’s most recent annual information form and management’s discussion and analysis for additional risk factors relating to Sugarbud, which can be accessed under Sugarbud’s profile on www.sedar.com. Except as required by applicable laws, Sugarbud 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.