These actions will expand brand presence in both recreational cannabis and national CBD markets in North America, solidify sales and distribution, and streamline operations.
Company will look to raise up to $10MM to fund ongoing expansion
VANCOUVER, British Columbia, June 29, 2021 (GLOBE NEWSWIRE) -- BC Craft Supply Co Ltd., (CSE: CRFT) (“CRFT” or the “Company”), a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy, today announced a series of global operational changes designed to expand sales, distribution, and streamline operations in North America.
CRFT will undergo a strategic refocus on growth segments; leveraging Canadian cannabis expertise in the United States cannabis and CBD markets and directing regulatory expertise in Canada towards licensure in psychedelics. As part of its ongoing strategic review of the business, the Company is today announcing the following priorities:
United States – National CBD Market: CRFT will expand distribution through a $1MM investment in wholly-owned Somo Industries Inc. d/b/a FeelWell Brands (“FeelWell”). Based in California, FeelWell’s flagship cannabis brand, CLIX, produces a variety of herbal blended pre-roll cannabis products, in addition to micro-dosed THC tablets. FeelWell will launch a national direct-to-consumer (D2C) CBD brand through strategic partnerships, large-scale facility partners, and product innovation-driven from CRFT in Canada. Sales will be driven primarily through proven D2C e-commerce partner channels starting Fall 2021, with retail distribution expected to commence Spring 2022.
United States – Recreational Cannabis: FeelWell will build distribution of a focused product range in the $11B California recreational THC market, which represents 15% of the total USA cannabis market. FeelWell continues to explore additional brand, facility, and device partnerships to support its cannabis market development in California.
Canada – Cannabis: Growth in USA CBD markets will be driven by a focused, profitable, recreational cannabis strategy in Canada. The Company’s flagship cannabis brand, Grizzlers was launched in Alberta and Ontario in Summer 2021. CRFT will expand distribution through a $2MM investment in the Grizzlers brand to support inventory, distribution, and long-run brand building. The Company continues its mission to leverage the expertise of Canadian craft producers to build stronger local communities through enduring craft products.
Canada – Psychedelics: With a core focus on plant-based innovation, CRFT sees tremendous potential in capturing and applying cannabis-based innovation/IP to psychedelic compounds derived from mushrooms. Its pre-clinical subsidiary, AVA Pathways Inc. (“Ava Pathways”), remains focused on neuroplasticity and alternative ways to treat common and debilitating medical conditions such as depression, anxiety, PTSD, and substance use disorder, through the use of psychedelic-based treatments. The AVA Pathways team is currently expanding headcount and is committed to securing licensure by Health Canada.
“We believe in the power of the cannabis markets in the United States, fueled by the right partners, innovation, and scale,” said Matthew Watters, CEO of CRFT. “The strategic prioritization of a cannabis and CBD strategy in the United States, fueled by our success, innovation, and clout in the Canadian marketplace, are important steps in creating an enduring vision for CRFT. We will also continue our focus on plant-based innovation, bringing our history of success in cannabis to the psychedelic realm with the expansion of the AVA Pathways team in Canada.”
In connection with the Company’s refocus on the growth and development of its business as noted above, it will also look to raise up to $10MM in working capital to support these initiatives through private placements with strategic business partners and investors. The terms and conditions of the private placements will be announced as and when they material develop by way of further news release updates and will be in accordance with the policies of the CSE and Canadian Securities Laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in the United States nor shall there be any offer, solicitation or sale of the Company’s securities in any state or other jurisdiction in which such an offer, solicitation or sale would be unlawful. Securities issued by the Company have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, “U.S. persons,” as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
About BC Craft Supply Co LTD ($CRFT).
BC Craft Supply Co Ltd. is a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy. The Company offers a reimagined vision for craft markets through collaboration, expertise, and adaptation. Its operations include:
CRFT a curator and aggregator of craft cannabis, providing advocacy and access for premium small-batch growers to Canada’s cannabis market;
Medcann Health Products - a cultivation and processing facility in Chemainus BC;
FeelWell Brands, a successful cannabinoid brand house licensed in the state of California; and
AVA Pathways a pre-clinical biotech company focused on neuroplasticity and mental health applications using psilocybin and compounds derived from mushrooms.
BC Craft works with local artists cross-sector and remains fervently committed to keeping the art, technique, and purity of their pursuit.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the 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 news 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. In this news release, forward-looking statements include, but are not limited to, the anticipated timing of the official launch of the Company’s new product lines.
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 which 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. There can be no assurance that forward-looking 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 news release. Except as required by law, Ascent assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
For further information:
Matthew Watters, CEO, and Director
Phone: (604) 687-2038
BC Craft Supply Co. LTD.
SUITE 810 – 749 West Pender Street
Vancouver, British Columbia