CALGARY, April 15, 2020 /CNW/ - Sugarbud Craft
Growers Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased
to announce that it has entered into a third-party licensing and
distribution agreement ("Agreement") with Agro-Greens
Natural Products Ltd. ("Agro-Greens") to sell and
distribute Sugarbud's Craft Cannabis Collection to authorized
provincial wholesalers and retailers in Alberta, British
Columbia and Saskatchewan.
The agreement with Agro-Greens is subject to customary regulatory,
licensing and new product notification requirements.
Under the terms of the agreement, Sugarbud will process and
package its own craft cannabis dried flower products and
Agro-Greens will act under a license from Sugarbud as the
authorized sales and distribution intermediary between Sugarbud and
authorized provincial wholesalers and retailers.
The Company's agreement with Agro-Greens also covers the time
between today's announcement and when Sugarbud expects to receive
authorization from Health Canada to sell its craft cannabis dried
flower products directly to provincially authorized wholesalers and
retailers. As previously reported Sugarbud submitted its
license amendment application in February
2020 and expects to receive its sales license in the second
half of 2020.
Under the terms of this agreement and subject to customary
regulatory approvals and new product notifications, Sugarbud now
expects to begin shipping its Sugarbud branded craft cannabis dried
flower products to authorized provincial wholesalers and retailers
within the next 75 – 90 days, significantly earlier than the late
Q3 launch date provided in previous guidance.
READ: Sugarbud Provides Update on Operations and COVID-19
Preparedness
"Our partnership with Agro-Greens is a major step forward in the
evolution of our Company and will help maximize the value of
Sugarbud products. Together with our previously announced wholesale
distribution agreement with National Cannabis Distribution in the
Province of Saskatchewan, our
partnership with Agro-Greens both solidifies and accelerates
our entry into our core focus markets," stated Sugarbud CEO,
John Kondrosky.
READ: Sugarbud Announces Wholesale Distribution and Supply
Agreement in Saskatchewan with
National Cannabis Distribution
"Our entry into the adult use recreational cannabis market in
Canada is a major catalyst for the
company and we couldn't be more excited to be partnering with
Agro-Greens to advance our plans to bring the Sugarbud Craft
Cannabis Collection to our target markets and consumers in
Alberta, British Columbia and Saskatchewan," concluded Mr. Kondrosky.
"Sugarbud is a good example of the new wave of licensed
producers that are coming online now, and we are really excited to
help them bring their product to market," said Jeremy Vokins, Managing Director of
Agro-Greens.
About Sugarbud
Sugarbud is a federally licensed Alberta based craft cannabis company, focused
on the cultivation and production of genetically diverse, high
quality, select-batch cannabis products. Our mission is to delight
the most discerning cannabis consumer and evolve the way people
think about incorporating cannabis into their daily lives.
http://www.sugarbud.ca/
About Agro-Greens Natural Products Ltd.
Located in the Canadian heartland, Agro-Greens Natural Products
Ltd. is a family-run Health Canada licensed producer. Proud to
follow a long line dedicated to the prairie tradition of
agricultural excellence, Agro-greens produces craft-quality,
medical cannabis for those suffering from chronic pain and
illnesses, acts as a processor for Micro-cultivators, and operates
the medical e-commerce platform https://sheltermarket.ca/ in
conjunction with Shelter Cannabis.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More
particularly, and without limitation, this news release contains
statements concerning: Sugarbud's assessment of future plans,
operations and cannabis cultivation, including the shipment of the
first commercial batch of cannabis and the launch its first adult
recreational premium dried cannabis products and the timing
thereof; the Company's ability to remain operating in accordance
with developing public health efforts to contain COVID-19; product
quality; the supply agreements and partnerships; and the timing of
obtaining necessary approvals required to conduct the contemplated
business of the supply agreements. When used in this document, the
words "will," "anticipate," "believe," "estimate," "expect,"
"intent," "may," "project," "should," and similar expressions are
intended to be among the statements that identify forward-looking
statements. The forward-looking statements are founded on the basis
of expectations and assumptions made by Sugarbud. Forward-looking
statements are subject to a wide range of risks and uncertainties,
and although Sugarbud believes that the expectations represented by
such forward-looking statements are reasonable, there can be no
assurance that such expectations will be realized. Any number of
important factors could cause actual results to differ materially
from those in the forward-looking statements including, but not
limited to: currently contemplated expansion and development plans
may cease or otherwise change; production of cannabis may be lower
than expected, Sugarbud may not obtain the required approvals from
Health Canada, including approving an amendment to its dried
cannabis sales licence to permit interprovincial sales; demand for
Sugarbud's products may be lower than anticipated; results of
production and sale activities; results of scientific research;
changes in prices and costs of inputs; demand for labour; demand
for products; failure of counter-parties to perform contractual
obligations; failure to maintain consumer brand recognition and
loyalty of customers; reliance on relationships with wholesalers
and retailers for distribution of products and failure to maintain
strategic business relationships; intense competition, including
from illicit sources; uncertainty and continued evolution of
markets; product liability litigation; reliance on information
technology; infringement on intellectual property; failure to
benefit from partnerships; sensitivity of end-customers to
increased sales taxes and economic conditions; failure to comply
with certain regulations; departure of key management personnel or
inability to attract and retain talent; actions and initiatives of
federal and provincial governments and changes to government
actions, initiatives and policies and the execution and impact
thereof; the ability to implement corporate strategies; the state
of domestic capital markets; the ability to obtain financing;
changes in general market conditions; industry conditions and
events; the size of the medical marijuana market and the
recreational marijuana market; government regulations, including
future legislative and regulatory developments involving medical
and recreational marijuana; construction delays; risks inherent in
the agricultural business, such as insects, plant diseases and
similar agricultural risks which can have a significant impact on
the size and quality of the harvest of cannabis crops; competition
from other industry participants; and other factors more fully
described from time to time in the reports and filings made by
Sugarbud with securities regulatory authorities. In addition, the
Company cautions that current global uncertainty with respect to
the spread of the COVID-19 virus and its effect on the broader
global economy may have a significant negative effect on the
Company. While the precise impact of the COVID-19 virus on the
Company remain unknown, rapid spread of the COVID-19 virus may have
a material adverse effect on global economic activity, and can
result in volatility and disruption to global supply chains,
operations, mobility of people and the financial markets, which
could affect interest rates, credit ratings, credit risk,
inflation, business, financial conditions, results of operations
and other factors relevant to the Company. Please refer to
Sugarbud's most recent annual information form and management's
discussion and analysis for additional risk factors relating to
Sugarbud, which can be accessed under Sugarbud's profile
on www.sedar.com. Except as required by applicable laws,
Sugarbud does not undertake any obligation to publicly update or
revise any forward-looking statements.
Neither the TSXV nor its regulation services provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE SugarBud Craft Growers Corp.