CanadaBis Capital Inc. (TSXV:CANB) (“CanadaBis” or “the Company”) a holder of a federal licence to cultivate, process and sell cannabis under the Cannabis Act, has announced its strategic direction and facility expansion focus for its subsidiary 1998643 AB LTD. (“Stigma Grow”)
Stigma’s focus is clear; they are a company committed to helping their evolving industry deliver on the promise of the highest-quality legal cannabis products. Their facility in Red Deer Alberta acts as the Company’s cornerstone; providing the craft-quality plants needed to supply for all four pillars of their integrated business model.
“We are advantageously positioned to grow and manufacture products that will be among the highest quality and potency in the market,” said President & CEO, Travis McIntyre. “Stigma Grow intends to leverage the ability our own, top-quality flower, state-of-the-art technology, and the insight provided by our skilled and experienced staff, to target consumers and partner LPs that are looking for high-quality, “bud-run” extract product variations.”
The Company anticipates a shift in consumer behaviour from a focus on dry flower to a focus on concentrates in 2020 and beyond. To prepare for this demand, the Company has spent six months perfecting their systems and constructing a CIDI Lab to house hydrocarbon extraction processing — positioning them to bring difficult-to-produce products to market on a mass scale.
In addition to representing products that are in high demand, Stigma concentrate products will be some of the first available in the Canadian legal market.
Stigma’s concentrates promise an extremely clean, consistent and pure form of cannabis product, and Stigma’s third-party processing abilities have already captured the interest of several LPs looking for service providers capable of facilitating the expansion of their own lines of products.
Travis explains, “With the current CIDI Lab constructed and our expansion plans well underway, we are perfectly positioned to take on a large volume of toll processing for other LPs. We see this as an opportunity for those who have flower who would like to expand their offerings to address evolved demands of a growing market.”
At present, Stigma has signed agreements with several reputable LPs to conduct concentrate manufacturing on their behalf, and currently hold POs for provincial channels scheduled for a late-March delivery of high-quality, terpene-rich, shatter, badder, live res badder and live res caviar.
The Company is currently in talks for more partnerships and expect to make another announcement in the coming weeks.
Although the Company sees a shift in focus from flower to concentrates, they have not lost sight of the need to provide high-quality craft cannabis, and recognize the synergistic connection.
As with any Premium Product the best inputs generate the best outputs. The combination of the two sets the stage for our long-term plans as a craft-cannabis cultivator recognized for high-quality in everything we produce. This ongoing commitment to both sides of the cannabis market will allow us to control the quality of our products, and always ensure an optimized offering.
Stigma Grow currently operates 22,000 sq/ft of production space and is in the midst of their Phase 2 expansion which will increase this area to 66,000 sq/ft by mid-2020. Proudly offering craft-quality products with optimal cannabinoid profiles, Stigma Grow is the first Health Canada-licensed producer operating in the Red Deer area.
Stigma Roots seeks to bring the healing potential of cannabis roots to a market seeking alternative treatment options from a wide range of ailments. Unlike the leaves and buds of the cannabis plant, which are strictly regulated, the roots of the cannabis plant do not fall under the same, strict regulations; providing a valuable opportunity to extend Stigma’s products and brand messaging to the general public.
By using the roots of a cannabis plant as the primary ingredient in their lotions and balms, Stigma Roots offers three advantages: (1)products capable of providing the relief and benefits people seek; (2) a profit stream generated from roots that would typically be wasted; and, (3) a way to reach an entirely new audience with our message — one that may not typically engage with a recreational cannabis brand.
The Company owns and operates a standalone retail location in Red Deer Alberta’s Gasoline Alley — INDICAtive Collection. In addition to providing polish and professionalism, INDICAtive Collection acts as a touch point for a company focused on providing that which is currently lacking.
Far more than a pillar acting in and of itself, INDICAtive Collection provides our cultivation and processing R&D departments with first-hand statistical evidence of what sells, what’s trending and what is not widely accepted by the public. Not only does this first-hand research help guide our retail inventory, it also guides our efforts at the LP level; ensuring we are producing products that will be in high-demand.
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.