Production at Brampton Manufacturing Hub to commence immediately, Pure Global announces financing agreement with Alumina Partners
TORONTO, Nov. 19, 2019 (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, is very pleased to announce that it has received approvals from Health Canada to amend its existing license to add manufacturing capabilities via phase 2 of its already licensed facility in Brampton. Having completed their facility in the spring, the Company can begin cultivation and extraction immediately now that all approvals have been granted. This is a transformational event for the Company as it enables its own production as opposed to previously being dependent on wholesale purchases for its inventory hence significantly expanding its sales and margin potential.
Pure Global’s facility was designed and built to exceed regulatory standards. This approval enables the addition of a 10,000 square foot EU-GMP grade manufacturing space, comprising 12 rooms that will be used for cultivation, processing, and extraction, to the Company’s already licensed site.
With these Health Canada approvals, The Company can immediately:
- commence using its 6 tons CO2 extraction system towards enabling bulk cannabis extract and distillate sales
- commence multi-layer and vertical cultivation towards 50-100 kg per month capacity, with the first harvest expected in Q1 2020
- commence final testing of proprietary vertical growing system for phase 3 scaled deployment
- continue installation of targeted 100+ tons of biomass extraction systems for CBD isolate manufacturing for Q1 2020 readiness
- continue installation of scaled processing and packaging for vape pens, topicals, dried flower, oils, tinctures, and edibles, to add to the current capacity already in place.
Pure Global aims to become a leader in bulk cannabinoid and infused product manufacturing in Canada and globally. With the high margins this sector is experiencing, the Company is well positioned to take advantage of the growing demand. Along with leveraging its advanced manufacturing capabilities for white or private label services, the Company is also introducing its own branded products in targeted legal adult and health & beauty consumer segments including PureSinse® Wellness, Paper&Weed Pre-rolls, Kumo Edibles, Galaxy Premium Cannabis, and The Great Canadian Hemp Co®.
Receiving these cultivation and processing approvals enables the Company to begin bulk distillate sales and offering co-manufacturing services through its recently launched B2B brand, PureCanna Solutions. The Company is currently installing large scale biomass extraction equipment, with CO2 extraction capabilities already in place. PureCanna is poised to begin the sales of bulk concentrates, branded and white-label medical, recreational and wellness products as well as co-manufacturing and tolling services almost immediately.
Pure Global CEO & President, Malay Panchal said, “Receiving our phase 2 approvals from Health Canada is a significant achievement as it enables us to commence our own cultivation and extraction for our branded and B2B sales. We have worked tirelessly to prepare our team, facility, set up distribution channels, and scale our partnerships in Canada and globally for this moment. We are building to become a truly global leader and have positioned ourselves to make huge strides in the coming quarters. These efforts will help us create significant value for our shareholders, and we are very excited to be able to significantly enhance our revenue and margin generating potential with this approval.”
Pure Global Secures Financing:
Pure Global is also pleased to announce that it has entered into an investment agreement with Alumina Partners (Ontario) Ltd. (the “Investor” or “Alumina Partners”), a New York-based private investment partnership, which provides the availability of up to CDN$28,000,000 over 24 months to increase operating flexibility and strengthen the Company’s financial position.
The agreement consists of a commitment by Alumina Partners to purchase up to CDN$8,000,000 of units of Pure Global in a series of private placement offerings. Each unit consists of one common share in the capital of Pure Global (“Common Share”) and one Common Share purchase warrant (“Warrant”). Upon the Company achieving the milestone of CDN$32,000,000 market capitalization, this increases by an additional CDN$20,000,000 to a total commitment of CDN$28,000,000. The price per share of the Common Shares purchased by the Investor under each private placement offering will be at a discount of between 15% and 25% to the market price (the “Market Price”) of the Common Shares on the TSX Venture Exchange at the time of such private placement offering, subject to the maximum aggregate discount mandated by the TSX Venture Exchange. Each Warrant will have an exercise price between 30% to 50% premium to the Market Price depending on the price of the Common Shares at the time of issuance with a 40 month expiration, subject to certain acceleration rights available to Pure Global.
“Alumina is delighted to support Pure Global Cannabis as they prepare to embark on a new phase of growth,” added Adi Nahmani, Managing Member of Alumina Partners. “We are impressed with senior management’s singular focus on executing against plan and firmly establishing business lines relying on the core competencies of in-house talent. As Cannabis 2.0 launches in Canada, we are confident that Pure will be increasingly well-positioned to profit from new opportunities to build real revenue.”
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 Health 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 early 2020.
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.
Stephen Pynn, VP Corporate Development
Pure Global Cannabis Inc.
Malay (Mel) Panchal, President & CEO
Pure Global Cannabis Inc.