TSX-V: CANB
www.canadabis.com
CALGARY, July 24, 2019 /CNW/ - CanadaBis Capital Inc.
("CanadaBis" or "the Company") has acquired Full Spectrum Labs
Ltd., a private corporation which holds intellectual property (IP)
and the physical equipment for an extraction methodology to
preserve all of the phytocannabinoids and terpenes from cannabis by
utilizing an extreme low-temperature process to create the
Company's future concentrates. This method will allow the Company
to produce a unique variety of finished goods such as tinctures,
vapes and oils. With Full Spectrum Labs' processes and IP,
CanadaBis and its subsidiary 1998643 AB Ltd. ("Stigma Grow") will
be able to provide a clear concentrate to the market; giving the
consumer a cleaner choice for consumption. With this acquisition,
CanadaBis will also be in position to start accepting third-party
material from other cannabis licensed producers for toll processing
to increase its current cash flows and provide the market with
alternative concentrates or oils.
The Company will operate the extraction assets within Stigma
Grow's cultivation and processing facility, located in
Red Deer, Alberta. The extraction
staff will be retained and integrated into the Stigma Grow
operations with a focus on expanding the entire Stigma Grow product
line. This will provide the Company with three extraction
methods (hydrocarbon, ethanol, solventless) to address current
and future demand. The low-temperature extraction will preserve
natural cannabinoids, increase yields and eliminate many
of the operating costs traditionally associated with
alternative processes.
This new methodology will allow the Company to bring forward a
variety of new products to the cannabis and hemp markets that have
not been altered by high heat or other solvents — which can
degrade the quality of cannabinoids. In addition, this will allow
the Company to develop new intellectual property, in anticipation
of the legalization of new products pursuant to the amendments to
the Cannabis Act coming into force on October 17, 2019. The Company intends to
submit its notice to produce and sell these products as soon as
possible upon legalization.
"The acquisition of Full Spectrum Labs will allow Stigma Grow to
manufacture unique, clean and clear products for consumers that
will be among the highest quality and potency in the market," said
President & CEO, Travis
McIntyre. "Stigma intends to leverage this technology, and
the insight provided by our skilled and experienced staff, to
target consumers that are looking for high-quality product
variations. The Company also believes the addition of this IP
showcases our continued focus on products that will lead the
industry in both innovation and quality. The difference is clear;
we are preparing for the future of cannabis."
Under the terms of the agreement, CanadaBis will issue 6,666,666
common shares priced at $0.30 per
share, subject to regulatory approval. The shares issued are
subject to certain share sale restriction provisions over 24
months.
Stigma Grow currently operates 22,000 sq/ft of production space
and plans to expand this area to 66,000 sq/ft later this
year. The Company received a standard cultivation and
processing license from Health Canada on March 8, 2019 and has recently harvested its
second crop. Stigma is currently working on developing and
promoting a strong Alberta brand focused on catering to
high-quality experiences. Proudly offering a craft product with
optimal cannabinoid profiles, Stigma is the first Health
Canada-licensed producer operating in the Red Deer area.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION: This news release includes certain
"forward-looking statements" under applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements with respect to our business and operations
including development and expansion plans, filing Health Canada
notices, entering into third party processing agreements, getting
products to market and the timing thereof. Forward-looking
statements are necessarily based upon a number of assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors which may cause
actual results and future events to differ materially from
those expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: compliance with extensive
government regulation, the general business, economic, competitive,
political and social uncertainties; requirement for further
capital, delay or failure to receive board, shareholder or
regulatory approvals; the results of operations and such other
matters as set out in the Filing Statement available on SEDAR at
www.sedar.com. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such
statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. Investors are cautioned that
forward-looking information is not based on historical facts but
instead reflects management's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made. Although we believe
that the expectations reflected in such forward-looking information
are reasonable, such information involves risks and uncertainties,
and undue reliance should not be placed on such information, as
unknown or unpredictable factors could have a
material adverse effect on our future results,
performance or achievements.
Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated,
believed, estimated or expected. Although the Company has attempted
to identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended.
CanadaBis Capital does not intend, and does not assume any
obligation, to update this forward-looking information except as
otherwise required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE CanadaBis Capital Inc.