The deal comes after receiving positive feedback from Supply Side West, with PLC gaining momentum in Q4 2023 on the back of this agreement.
TORONTO, Nov. 07, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Power Leaves Corp. (“PLC”), a manufacturer of decocainized coca leaf essence, announced that it has signed a supply agreement with a Canadian food and beverage manufacturer (the “Customer”). Under the agreement, the Customer has a committed purchase obligation of 4,500 litres of PLC’s coca essence product at $100 per litre in 2024, increasing to 9,000L in 2025, for a total contract value of $1.35M.
“We're thrilled to announce the signing of our first large-commercial contract for our novel coca essence product. This agreement not only validates the market's enthusiasm for our portfolio of coca-based products, but it also keeps PLC on course to achieve its financial goals for 2024,” commented Pat McCutcheon, Co-Founder & CEO, Power Leaves Corp.
The minimum purchasing obligations under the agreement are expected to be a significant driver of PLC's Coca Essence revenue for the Canadian market. PLC has retained rights to sell its coca essence to other parties within Canada, where it expects to receive substantial additional interest for this product.
This announcement follows the fulfillment of our first commercial shipments that are part of the previously announced US$2.75M coca extract supply agreement. The coca extract and coca essence products sold under these agreements are intended for use in developing finished beverage products for the Canadian and US markets.
The Coca Essence - a first-of-its-kind product - is a highly aromatic, terpene-rich concentrate for dilution and blending into alcoholic beverages such as gin, vodka, tequila, and hard seltzer. PLC continues to engage with other alcoholic beverage manufacturers who have shown substantial interest in this novel ingredient.
Supply Side West
In late October, PLC participated in the international Supply Side West show in Las Vegas, conducting customer interviews and securing Tier 1 customer leads.
“We received tremendous feedback from ingredient suppliers and purchasers at the conference,” continued McCutcheon. “As the only coca supplier participating, and with our diverse portfolio of novel coca products, the positive reception was incredibly exciting and we expect it to lead to more commercial deals in the near future.”
PLC continues to position its portfolio of coca products as the next generation “hero” ingredient that can offer a positive sensory experience paired with nutritional value. While Coca-Cola continues to leverage coca extract in its namesake ingredient, PLC has a robust product development pipeline of novel coca products that have previously been unavailable to the market, including our coca essence product.
About Investing In Power Leaves Corp.
Power Leaves is currently accepting investments from accredited investors through a Reg D 506(c) offering. To learn more about investing in Power Leaves visit invest.powerleaves.com.
About Power Leaves Corp.
Founded in 2019, Power Leaves is breaking the monopoly on the supply of coca leaf extract and ushering in a new Age of Coca. Through an exclusive agreement with an Indigenous community, Power Leaves has developed the first-ever legal Colombian supply chain for decocainized coca extract to supply the global food and beverage markets. Through its established infrastructure, Power Leaves is developing and manufacturing proprietary formulations of coca extract and essence that offer an exceptional taste profile and an all-natural source of protein, nutrients, and positive health benefits. For more information, visit www.powerleaves.com.
Media:
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858.221.8001
Investors:
Myra Group
Investor Relations
Evan@myragroup.co
Cautionary Notes
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this press release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected" "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could, "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the 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: general business, economic, competitive, political and social uncertainties; and the delay or failure to receive shareholder, director or regulatory approvals. 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 the forward-looking statements and information contained in this press release. Except as required by law, PLC assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.
