CALGARY, Alberta, Feb. 11, 2021 (GLOBE NEWSWIRE) — Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT, SUGR.WS, SUGR.DB) (”
Sugarbud
” or the ”
Company
“) is pleased to announce that it has entered into a national product purchase and supply agreement (the ”
Supply Agreement
“), for the Company’s Cannabis 2.0 products with CannMart Inc. (”
CannMart
“).
Sugarbud is also pleased to announce that, as part of the previously announced contract manufacturing agreement with Heritage Cannabis Holdings Corp. (CSE: CANN) (”
Heritage
“) (the ”
Manufacturing Agreement
“), it has completed the final development and qualification of its additive-free, 100% cannabis full-spectrum vape cartridges.
Supply Agreement
Under the terms of the Supply Agreement, CannMart will have the ability to purchase Sugarbud branded cannabis extract products for subsequent national distribution and sale to provincially/territorially authorized distributors/retailers under their own sales license and Sugarbud will process and package the Sugarbud branded craft cannabis extract products on behalf of CannMart. The agreement with CannMart is subject to customary regulatory, licensing and new product notification requirements.
“Our entry into the adult use recreational Cannabis 2.0 market in Canada is a major catalyst for the company and we couldn’t be more excited to be partnering with CannMart to accelerate our plans to bring our expanded Sugarbud Craft Cannabis Collection to our target markets and consumers in Canada,” stated Sugarbud CEO, John Kondrosky.
“Our partnership with CannMart is a very significant step forward in the rapid evolution of our Company and just another example of how we continue to focus and execute against our strategic priorities and hit the milestones we have laid out for the Company. Together with our previously launched dried cannabis platform of products, our partnership with CannMart both expands and accelerates our penetration into our core focus markets,” concluded Mr. Kondrosky.
“We are pleased to welcome Sugarbud to our portfolio as many companies are seeing added value in Namaste’s distribution footprint,” said Meni Morim, CEO of Namaste Technologies Inc. (TSXV: N) CannMart’s parent company. “We look forward to working closely with our new partner to expand their reach to Canadian cannabis consumers.”
Sugarbud now expects to be in a position to begin shipping its Sugarbud branded cannabis extract products to provincially/territorially authorized distributors/retailers by the end of Q1 2021.
The Company’s agreement with CannMart also covers the time between today’s announcement and when Sugarbud expects to receive authorization from Health Canada to sell its Cannabis extract products directly to provincially/territorially authorized distributors/retailers and registered patients.
The Company expects approval for its own amended sales license permitting the direct sale of cannabis extracts in early Q3 of 2021.
Manufacturing Agreement
Under the terms of the previously announced manufacturing agreement, Heritage will continue to provide Sugarbud with extraction, formulation and production services for the ongoing supply of its pre-filled vape cartridges utilizing proprietary, additive-free 100% cannabis formulations. Additional details are available in the Company’s press release dated October 15, 2019.
“Our high quality, 100% cannabis vape products are a natural and logical extension of our inhaled product strategy. Sugarbud vape products leverage and embody the quality, consistency, flavour profiles and aromas found in our exceptional craft cannabis flower,” stated Mr. Kondrosky, CEO of Sugarbud.
New cannabis derivative products and formats such as vape cartridges and pens are a rapidly growing segment of the Canadian adult-use recreational market and Sugarbud expects that its high-quality, additive-free 100% cannabis vape products will become a significant catalyst for future growth.
“We are confident that our partnership with Heritage will equip Sugarbud to deliver high quality products to consumers with the safety, integrity and exceptional outcomes they demand,” concluded Mr. Kondrosky.
About Sugarbud
Sugarbud is an Alberta-based, consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. Our vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers.
READ CORPORATE INVESTOR DECK HERE
About CannMart
CannMart is a wholly owned subsidiary of Namaste Technologies Inc. (TSX.N) a leading platform for cannabis products, accessories, and education.
John Kondrosky
Chief Executive Officer
Sugarbud Craft Growers Corp.
Phone: (604) 499-7847
E-mail:
[email protected]
Investor Relations Contact
Chris Moulson
Chief Financial Officer
Sugarbud Craft Growers Corp.
Tel: (778) 388-8700
E-mail:
[email protected]
Websites:
http://www.sugarbud.ca/
Address: Suite 620, 634 – 6th Avenue S.W., Calgary, Alberta T2P 0S4
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, including sales, marketing and distribution opportunities; the Company’s ability to remain operating in accordance with developing public health efforts to contain COVID-19; product quality; partnerships, including with Heritage and CannMart; the development, production and sale of cannabis derivative products, including vape cartridges; applying for an amendment to its sales license to permit direct sale of cannabis extracts; future growth; and the ability to build shareholder value. 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, including with respect to an amended sales license; demand for Sugarbud’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; 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; 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; actions and initiatives of federal and provincial governments and changes to government actions, initiatives and policies and the execution and impact thereof; 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. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remain unknown, rapid spread of the COVID-19 virus may have a material adverse effect on global economic activity, and can result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. 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.
