TORONTO, Feb. 12, 2020 (GLOBE NEWSWIRE) -- Pure Global Cannabis Inc. (TSX.V:PURE; OTC: PRCNF) (the “Company” or “Pure Global” or “Pure”), an integrated growth-oriented cannabis bulk extracts and consumer products manufacturing company, operating through its wholly-owned subsidiary PureSinse® Inc., a Health Canada Licensed Producer under the Cannabis Act, which also operates under a B2B brand PureCanna Solutions, is very pleased to provide a strategic update on the development of its business. The Company continues to move forward with its goal of becoming a global sector leader focused on manufacturing high quality cannabis flower, extracts, distillates, post-derivative cannabis and cannabidiol (“CBD”) consumer products for the Canadian and international markets. The Company’s key manufacturing hub is based in Brampton, Ontario with joint operations underway for scaled hemp derived CBD manufacturing in Yunnan China.
“Following our recently announced successful financings, which included a mortgage re-financing, a second mortgage and a non-brokered private placement, Pure Global is well capitalized and prepared for an exciting year of growth,” said Malay Panchal, CEO & President. “We are now strongly focused on growing our business and building shareholder value by keeping our operations lean while scalable concentrated in areas of highest sales volumes and margins.”
2019 Milestones
Pure Global announced a significant number of milestones in 2019. These include:
- Awarded Health Canadas Sales License for dried flower Q1 2019
- Launched Cannabinoid Clinical Education Network for physicians Q2 2019
- Acquired Spark Cannabis Clinic enabling telemedicine and referral revenues Q1 2019
- Acquired Great Canadian Hemp Company Q2 2019
- Established Medical Advisory Committee Q2 2019
- Received Oil Sales License from Health Canada Q3 2019
- Signed agreement with KMT-Hansa Corp. for large scale hemp manufacturing in China Q3 2019
- Received License to sell extracts, edibles and topicals Q4 2019
- Received Health Canada approval to add manufacturing capabilities Q4 2019
- Received approvals from Health Canada to amend its existing license to add manufacturing capabilities to its already licensed facility in Brampton
- Added 10,000 sq. ft. of GMP grade manufacturing space comprising 12 rooms that will be used for cultivation, processing, extraction, and manufacturing finished cannabis and CBD products
- Created B2B brand, PureCanna Solutions Q4 2019
Liquidity and Balance Sheet
In order to fund the execution of its business plan, Pure Global recently announced several financings that strengthens the Company’s balance sheet and ensures short-term liquidity. These recently announced financings include:
- Mortgage Re-financing:
The mortgages will be secured by Pure’s two industrial warehouses located in Brampton, Ontario, one of which is fully licensed and operational for indoor cultivation, extraction, and processing. The $7,250,000 in mortgages will be apportioned as follow:
- $5,000,000 to refinance current debt;
- $932,500 to provide Pure with working capital;
- $682,500 to be used to create a 12-month interest payment reserve;
- $250,000 as a holdback for potential building remedial costs;
- balance to cover fees, transactional and legal costs.
- Private Placement:
The private placement offering will consist of up to 37,500,000 units of the Company to be priced at $0.056 per unit for total proceeds of up to $2,100,000. Each unit will consist of one Common Share and one-half Common Share purchase Warrant. Each Warrant will entitle the holder to purchase one Common Share at $0.1225 within 30 months.
Manufacturing Update
Pure recently received an amendment to their existing license from Health Canada to add manufacturing capabilities to its already licensed facility in Brampton. The company has commenced cultivation in traditional indoor hydroponic and final vertical farming method with first harvest expected in Q2 2020. The Company also has capabilities for CO2 supercritical extraction, live resin distillation, and manufacturing of finished branded and white label products for the medical, legal adult, wellness, and CBD markets. The Company recently announced its B2B division, PureCanna Solutions, which offers high quality contract manufacturing, packaging, processing, and tolling services, for which it is currently securing orders for extracts, oils, tinctures, capsules, topicals, vape pens, and soon edibles among other post derivative product manufacturing and distribution.
The company has commenced or is about to commence the following:
- CO2 super critical extraction system 25kg to 50kg monthly output starting Q1 2020
- 1 full vertical grow room and 1 traditional hydroponic growing room expected to achieve 150kg per month capacity with first harvest expected Q2 2020 (cultivation commenced Jan 2020)
- Final testing of proprietary indoor vertical growing system for Phase 2b to add 300kg per month capacity (Q3 2020)
- Installation of targeted 100+ tons biomass extraction systems CBD isolate manufacturing for Q2 2020 readiness
- Processing and packaging lines for vape pens, topicals, dried flower, oils, tinctures, edibles, among other post-derivative products for thousands of unit per day capacity, scalable with demand
China Update
Pure recently entered a joint operating agreement for a large scale cultivation and processing operation in Yunnan, China. With tens of thousands of acres made available to us through local, state, and federal licensing, a unique license to import high quality CBD genetics, Pure plans to produce and distribute large volumes of organic CBD globally, while creating a manufacturing hub in China with KMT. This project is supported and sanctioned through the Government of China which is making development in western provinces a priority by bringing high value crops to the regions as well as significant infrastructure development. Our development partner KMT provides the resources for the development, while Pure manages the operations and sales. Pure brings large scale commercial agricultural technology, manufacturing, and sales expertise, genetics, and an existing Canadian license through which the company will be able to operate under Special Economic Zone tax-free export provisions. We are keeping a close watch on the progress of the corona virus spread which is in the opposite region to where our project is located, and so far has not impacted our project though all travel there have been delayed.
The project is progressing on schedule with cultivation expected to commence Q2 2020.
Catalysts Ahead
- Manufacturing Upgrade - 100+ tons Biomass Extraction – expected Q2 2020
- First Harvest - Q2 2020
- CBD Bulk Sales – expected early 2020
- Launch Great Canadian Hemp Company line of products in Europe and Asia - expected H1 2020
- China Cultivation Start - expected Q2 2020
- China Extraction and Isolate sales – expected H2 2020
- Canada Phase 3 Readiness - expected H2 2020
- Cash Flow Positivity - expected Q2/Q3 2020
- Supply and Sales Agreements expected beginning Q1 2020
- Launch of Additional Branded and Private Label Products expected beginning Q2 2020
“We are excited with the increasing momentum we are seeing as we enter this new year with the number of retail locations where cannabis and CBD products can be sold continues to grow month over month. We believe there will be a 10-fold increase in the market size in Canada and internationally for CBD products over the next 24 months and beyond for which we are positioning. We thank everyone for their continued support and patience and look forward to creating significant value for our investors and all our stakeholders over the next year and beyond as we strengthen our team and our presence in the market,” said Malay Panchal, Founder and CEO.
About Pure Global Cannabis
Pure Global is an EU-GMP grade cannabis manufacturer focused on producing high-quality high margin branded and white label cannabis and CBD consumer products, premium quality bulk dried flower, full spectrum concentrates, and pre-formulated active ingredients for CPG manufacturers globally. The Company is led by a professional team of experienced pharma, biotechnology, horticultural, extraction, manufacturing and consumer packaged goods experts, and operates through its wholly owned subsidiary, PureSinse® Inc., which is a licensed producer under the Cannabis Act. Pure operates a B2B brand under PureCanna Solutions which is focused on high-margin bulk cannabis extracts, bulk CBD sales, as well as white label, and co-manufacturing services. The Company’s 18,000 square foot Brampton manufacturing campus houses facilities for vertically farmed hydroponic indoor cultivation, R&D, extraction, processing, and packaging. To compete in international markets, Pure Global is the process of deploying a joint operation in Yunnan, China for large scale hemp derived organic bulk CBD manufacturing and processing for international bulk and finished product sale under Special Economic Zone tax-free export provisions. Pure has also launched, or is in the process of launching, several premium branded products in targeted consumer categories into the Canadian legal adult market including PureSinse® Wellness, Paper&Weed Pre-Rolls, Galaxy Cannabis, Kumo Edibles, and PureSinse® Medical, which operates with Pure’s wholly own subsidiary Spark Cannabis Clinic, offering free telemedicine consultation for medical cannabis patients across Canada. Through its recently acquired division, The Great Canadian Hemp Company®, which won Hemp Product Company of the year at the recent 2019 GrowUp Awards, Pure is launching a line of organic hemp oil and CBD topical products, into several markets in Europe and Asia in the first half of 2020.
FORWARD-LOOKING STATEMENTS
This news release contains certain forward-looking statements, including, but not limited to, statements about Pure Global’s future plans and intentions. Wherever possible, words such as “may”, “will”, “should”, “could", “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, Pure Global cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and Pure Global assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Neither the TSX Venture Exchange 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.
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SOURCE Pure Global Cannabis Inc.
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