Health Canada Issues Additional Cultivation Licenses - Brisk Sales of Cannabis In Wake of Recreational Legalization

VANCOUVER, BC / ACCESSWIRE / October 25, 2018 / Since the legalization of recreation cannabis commenced this past Wednesday, provincial sales entities have been absolutely inundated with requests for cannabis product, and those entities are having more than their fair share of trouble keeping up with demand. The Globe and Mail, reported that the Ontario online store received approximately 100,000 orders during their first full day of operation, Vice reported that several outlets in Labrador and Newfoundland ran out of product while customers were still waiting in line with cash in their hands, and, according to the CBC, stores in Alberta had to close their doors when demand began to outstrip supply.

It seems, though, that Health Canada is not entirely ill-prepared to deal with these supply shortages. Over the last several months, leading up to recreational legalization, Health Canada has issued an increasing number of cultivation licenses to companies queued in the ACMPR approval process, and given them the authorization they need to help Canada meet its tremendous demand for cannabis product. One of the most recent recipients of these ACMPR cultivation licenses is PUF Ventures Inc.

PUF Ventures Inc. (PUF.CN) (PU3.F) (OTC PINK: PUFXF)

Through their majority-owned subsidiary AAA Heidelberg Inc., PUF Ventures Inc. has recently secured an ACMPR cannabis cultivation license from Health Canada, giving them the green light to start cannabis cultivation operations in their state of the art growing facility located in London, Ontario.

This license, however, does more than just give PUF the opportunity to commence cultivation at their London facility. It is generally believed that organizations already in possession of an ACMPR license undergo a potentially abridged process when securing additional licenses for the purposes of expansion. Aiming to take advantage of this potentially abridged process, PUF has already positioned itself with an opportunity that requires a second license.

Last month PUF announced that they had entered into an equity participation and earn-in agreement with Delta Organic Cannabis Corp. ("DOCC") with the intent of developing and retrofitting 2.2 million square feet of existing greenhouse space in Delta, BC. The agreement allows up to a $40 million investment from DOCC and, in a vote of confidence signalling that the deal would be moving forward, on October 17th DOCC advanced their first tranche of financing, transferring $12.5 million at a deemed price of $2.24 per share of PUF.

This puts PUF in a unique position whereby, once the Delta facility is ready, they can apply for a second, potentially fast-tracked, license while already having the framework and real estate needed to begin further cultivation in a large scale facility.

PUF Ventures Inc. CEO Derek Ivany had the following to say after receiving news that the company had acquired a cultivation license.

“This is a very proud day for our Company and our loyal supporters alike," said Derek Ivany, President and CEO of PUF Ventures Inc. "Receiving a cultivation license from Health Canada is a significant achievement which positions PUF to become a leading cannabis supplier to legal medical and recreational markets, in Canada and around the world. As a partner of Canopy Growth Corporation's CraftGrow program, the Company looks forward to collaborating with CraftGrow to supply the marketplace with high-quality cannabis. As we embark on this exciting next phase of growth, we are eager to expand our reach in both domestic and international cannabis markets."

Beyond the growth potential associated with PUF's acquisition of an ACMPR license, the company also has a diversified set of niche market opportunities which they've incubated over the last three years. In 2017, PUF purchased a sizeable ownership stake in an Australian cannabis operation that is planning 1.2 million square feet of greenhouse space, and more recently they've initiated spin-outs of two cannabis-related companies, Cannvas Medtech (CSE:MTEC) and Nature's Hemp, allowing their shareholders to extract considerable extra value from their initial stakes in the company.

Potentially Abridged Licensing Process

Although it is not written into the rules governing the ACMPR licensing process, events over the past several years have suggested that companies already in possession of an ACMPR license are given some level of priority when applying for expansion licenses. One of the best examples of this are the licenses that have been acquired by Aurora Cannabis Enterprises Inc. Aurora has so far obtained four ACMPR cannabis cultivation licenses from Health Canada and their last three licenses have been secured within just a two-year time frame. Many would believe that to be fast considering that some companies wait upwards of three years just to receive their first license. Another example of this potentially abridged licensing process comes from Canopy Growth Corp.'s BC Tweed Joint Venture Inc. BC Tweed Joint Venture received their first ACMPR license in February of 2018 and was granted a second license in fewer than two months.

About PUF Ventures

PUF Ventures Inc. is a growth-oriented and diversified company focused on the international cannabis industry. It has ownership in several cannabis companies including AAA Heidelberg and Propagation Services Canada in Canada, a large-scale greenhouse project in Australia and is actively pursuing other opportunities within the cannabis industry. PUF has an option to purchase 100% of AAA Heidelberg Inc., which has been granted an ACMPR cultivation license from Health Canada. For more information please visit www.puf.ca.

ON BEHALF OF THE BOARD OF DIRECTORS

Derek Ivany, President & CEO
For additional information:
PUF Ventures Inc.
E: ir@puf.ca
T: (800) 783-6056

No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

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This piece was written and distributed by Global Objective Marketing (GOM). All of the information contained within was produced using publicly available information and any opinions about individuals, companies or industries expressed within this release belong solely to GOM. The opinions expressed by GOM should not be considered as complete, accurate, or current investment advice. Any investment decisions made by readers are theirs and theirs alone. To ensure that you are making investment decisions that serve your own best interests, we recommend that you utilize the services of a professional financial planner or advisor. In order to comply with Section 17(b) of the 1933 Securities Act, GOM discloses that it was paid a sum of fifteen-hundred CAD to write this content for PUF Ventures.

SOURCE: Global Objective Marketing Ltd.