TORONTO, June 15, 2020 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the “Company”), a consumer packaged goods company in the cannabis products market, is pleased to announce that its joint venture partner, Sunens Farms Inc. (“Sunens”), has secured a standard cultivation licence from Health Canada for the first phase of its fully automated, purpose-built, 1.1 million sq. ft. greenhouse facility in Leamington, Ontario.
The Sunens facility is operational and the team will immediately begin cultivating high-quality organic cannabis within the licensed area. This standard cultivation licence allows Sunens to commence bulk sales of cannabis following harvest without additional regulatory approvals. Sunens has secured a large and diverse genetic library consisting of over 200 unique strains. Cannabis harvested from the Sunens facility will support the production of Auxly’s branded derivative cannabis products manufactured at the Company’s Dosecann facility in Prince Edward Island.
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This first phase of the licensed area includes approximately 360,000 sq. ft. of cultivation, processing, and storage space. The Company anticipates that the additional licence amendments for the remaining phases will be submitted throughout the course of 2020, and upon receipt of such amendments, the entire cultivation footprint for the project will be licensed.
“After spending several years researching cannabis facility design and optimal growing environments and having more than 25 years of experience building thousands of acres of high-tech, world-class greenhouses across North America, we have built what we believe to be the ultimate cannabis growing facility. We have also worked hard to assemble a very experienced team, from cultivation, operations and compliance, to enable Sunens to be a leader in the industry. Our objective is to produce the highest quality organic cannabis at the lowest cost possible,” said Peter Quiring, CEO of Sunens.
Hugo Alves, CEO of Auxly, added: “The receipt of this cultivation licence for the first phase of the Sunens project marks another key milestone for Auxly. The speed with which the joint venture project has been developed, constructed and licensed relative to its peers is a testament to the hard work and dedication of a very focused and capable team. Sunens will provide Auxly with a consistent, high-quality and cost-effective source of organic cannabis, giving us greater traceability and flexibility in the development and manufacturing of our branded products. We are focused on executing against our business plan and Sunens is an important piece of our strategy. This is a very happy day for everyone at Auxly.”
ON BEHALF OF THE BOARD
"Hugo Alves" CEO
About Auxly Cannabis Group Inc. (TSX.V: XLY)
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 have secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading 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/.
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. 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 proposed operation of the Sunens facility; the timing for completion and licensing of the additional phases of the Sunens facility; the Company’s execution of its product development and commercialization strategy; consumer preferences; 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: Sunens is able to maintain its cultivation licence and is able to obtain and maintain all other necessary governmental and regulatory authorizations and permits to operate its facility and conduct business, and whether such authorizations and permits can be obtained in a timely manner; and general economic, financial market, regulatory and political conditions in which the Company operates will remain the same. Additional risk factors are disclosed in the annual information form of the Company for the financial year ended December 31, 2019 dated May 13, 2020.
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 Auxly’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 Auxly. 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, Auxly 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.