Auxly, Together with its Strategic Partner, Atlantic Cultivation, Enters into a Comprehensive Supply, Development and Retail ...
September 04 2019 - 6:30AM
Auxly Cannabis Group Inc. (TSX.V - XLY)
("
Auxly" or the "
Company"),
together with its strategic partner, Atlantic Cultivation
(
“Atlantic”), is thrilled to announce today that
it has entered into a comprehensive supply, development and retail
agreement with the Province of Newfoundland and Labrador. The
agreement marks a significant milestone in the establishment of
Auxly’s presence in Atlantic Canada.
Under the terms of the agreement, Atlantic will
be eligible to apply to operate five new retail locations in the
province. Site scouting is currently underway and Atlantic plans to
open its first retail store by Q1 2020. Additionally, Auxly will
supply to the Province of Newfoundland and Labrador up to 50 kg of
dried flower (or equivalent derived products) in 2019, up to an
additional 1,000 kg in 2020 and an option for up to another 1,000
kg in 2021.
Atlantic has agreed to build a 110,000 square
foot purpose-built facility in Kenmount Crossing, St. John’s, for
cultivation, production and processing of high-quality cannabis.
Once fully constructed and operational, this facility will create
117 new jobs and will have the capacity to produce approximately
16,000 kg of cannabis annually.
Auxly will subscribe for up to 19.9% of the
issued and outstanding shares of Atlantic for a total of $2.5
million, which will be used to build out the five retail
locations.
The Honourable Christopher Mitchelmore, Minister
of Tourism, Culture, Industry and Innovation, commented:
“Attracting new investment and new industries to the province is
important to the Government of Newfoundland and Labrador. This
performance-based supply and production agreement with Atlantic
Cultivation capitalizes on opportunities to diversify our economy,
create wealth and contribute to sustainable employment. As we open
the door to growth and export opportunities, we are taking another
step in our goal to become a leader in the cannabis industry,
nationally and internationally.”
“We are extremely pleased to have finalized the
agreement with the Province of Newfoundland and Labrador,” said
Chris Crosbie, Chief Operating Officer of Atlantic. “We are excited
to get started on building out the production facility and look
forward to announcing the locations of our retail stores as we
establish them.”
Hugo Alves, Chief Executive Officer of Auxly,
added: “We are excited to continue to build on our partnership with
Atlantic and reinforce our commitment to Atlantic Canada, where we
are building meaningful cannabis businesses that have a positive
impact on the region. We look forward to delivering high quality
cannabis products and ultimately exceptional in-store experiences
to the Newfoundland and Labrador community.”
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman
About Auxly Cannabis Group Inc. (TSX.V:
XLY) (OTCQX: CBWTF)
Auxly is an international cannabis company
dedicated to bringing innovative, effective, and high-quality
cannabis products to the medical, wellness and adult-use markets.
Auxly's experienced team of industry first-movers and enterprising
visionaries has secured a diversified supply of raw cannabis,
strong clinical, scientific and operating capabilities and leading
product research and development infrastructure in order to create
trusted products and brands in an expanding global market.
Learn more at www.auxly.com and stay up to date at Twitter:
@AuxlyGroup; Instagram: @auxlygroup; Facebook:
@auxlygroup; LinkedIn: company/auxlygroup/.
Investor Relations:
For investor enquiries please contact our
Investor Relations Team:Email: IR@auxly.comPhone:
1.833.695.2414
Media Enquiries (only):
For media enquiries or to set up an interview
please contact:Sarah Bain, VP External AffairsEmail:
sarah@auxly.comPhone: 613.230.5869
Notice Regarding Forward Looking
Information:
This news release contains certain
"forward-looking information" within the meaning of applicable
Canadian securities law. Forward-looking information is frequently
characterized by words such as "plan", "continue", "expect",
"project", "intend", "believe", "anticipate", "estimate", "may",
"will", "potential", "proposed" and other similar words, or
information that certain events or conditions "may" or "will"
occur. This information is only a prediction. Various assumptions
were used in drawing the conclusions or making the projections
contained in the forward-looking information throughout this news
release. Forward-looking information includes, but is not limited
to: the ability of the Company to supply product to the Province of
Newfoundland and Labrador; Atlantic’s ability to build and operate
a cannabis production facility and create new jobs; the ability of
the Company and Atlantic to obtain and maintain Cannabis retail
permits and stores and generate revenue from them; political
change, future legislative and regulatory developments involving
cannabis and cannabis products; and competition and other risks
affecting the Company in particular and the cannabis industry
generally.
A number of factors could cause actual results
to differ materially from a conclusion, forecast or projection
contained in the forward-looking information in this release
including, but not limited to, whether: the Company and/or Atlantic
is able to maintain the necessary governmental and regulatory
authorizations and permits to conduct business; and general
economic, financial market, regulatory and political conditions in
which the Company and Atlantic operate will remain the same.
Additional risk factors are disclosed in the revised annual
information form of the Company for the financial year ended
December 31, 2017 dated May 24, 2018.
New factors emerge from time to time, and it is
not possible for management to predict all of those factors or to
assess in advance the impact of each such factor on the Company's
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking information. The forward-looking
information in this release is based on information currently
available and what management believes are reasonable assumptions.
Forward-looking information speaks only to such assumptions as of
the date of this release. In addition, this release may contain
forward-looking information attributed to third party industry
sources, the accuracy of which has not been verified by the
Company. The purpose of forward-looking information is to provide
the reader with a description of management's expectations, and
such forward-looking information may not be appropriate for any
other purpose. Readers should not place undue reliance on
forward-looking information contained in this release.
The forward-looking information contained in
this release is expressly qualified by the foregoing cautionary
statements and is made as of the date of this release. Except as
may be required by applicable securities laws, the Company does not
undertake any obligation to publicly update or revise any
forward-looking information to reflect events or circumstances
after the date of this release or to reflect the occurrence of
unanticipated events, whether as a result of new information,
future events or results, or otherwise.
Neither 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.
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