CanadaBis Capital Inc. (TSXV:CANB) (“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.