CALGARY, July 3, 2019 /PRNewswire/ - Westleaf Inc. (WL.V) (WSLFF) ("Westleaf" or the "Company") is pleased to announce the completion of construction on its wholly owned cannabis extraction, processing and product formulation facility, The Plant by Westleaf Labs, which will have throughput capacity of up to 65,000 kilograms per annum in Phase I. The facility is now entering the final stages of the Health Canada licensing process. The Company expects to receive a Standard Processing license for The Plant as early as Q3 2019 and anticipates that production at the facility would commence shortly thereafter. This marks a major operational milestone for Westleaf and, once licensed, will allow the Company to produce its own branded cannabis products, as well as provide contract manufacturing and white-label opportunities to other cannabis companies.
"This is a significant milestone for Westleaf, marking our transition from construction to operations and execution on our plan to build a brand focused vertically integrated cannabis company," said Scott Hurd, President and CEO. "Once licensed, this facility will produce the current suite of legal cannabis derivative products, and as we move towards additional cannabis product legalization in the fourth quarter, we will expand our product lines to include vapes, edibles and other derivative cannabis products."
The Plant Operational Highlights:
- Positions Westleaf for Future Growth– The completion of The Plant positions the Company to meet the expected new demand for cannabis derivative products anticipated to be coming to market in December of this year;
- Scalability – Phase I is a 15,000 square foot extraction, processing and product formulation facility with designed throughput capacity of up to 65,000 kgs of cannabis feedstock per year. The facility has additional 45,000 square feet available for expansion;
- Multiple Revenue Streams – The Plant will produce Westleaf's suite of brands, Loon, Backstage and General Admission, in addition to providing contract extraction & processing services, and white-label products for third parties;
- Leveraging U.S. Industry Expertise – The facility was designed by U.S. cannabis extraction industry leaders, XABIS, and will leverage their existing product formulation expertise, R&D, and best practices developed in Colorado, the most mature legal U.S. cannabis market.
As a result of Westleaf Inc.'s unique brand focused vertically-integrated business model, it is expected that The Plant will give the Company a competitive advantage in being adaptive to consumer needs and interests. "The Plant will also allow us to be flexible and responsive to consumer demand and underscores the value of the Westleaf business model," said Adam Coates, Chief Commercial Officer at Westleaf. "By owning the customer experience and feedback loop through our Prairie Records cannabis stores, we can alter production based on the trends of our customers."
Westleaf anticipates the next phase of cannabis legalization in Canada, which is expected to come later this year, will see a significant change in consumption habits among Canadians. A similar legalization framework in Colorado led to a shift where consumption of edibles, concentrates and vapes now make up more than 50% of the market.1
Located in southeast Calgary, Westleaf expects that The Plant by Westleaf Labs will positively contribute to the city's economic resilience and diversification. Calgary, with its highly educated workforce, its entrepreneurial spirit and its position as the major economic and trade centre for Western Canada, is the ideal place to build a hub of cannabis extraction, processing, product formulation and research and development.
About Westleaf Inc.
Westleaf is a vertically integrated cannabis company focused on innovative retail experiences and engaging cannabis brands as well as cultivation, production and extraction of cannabis products. Westleaf is rolling out a national retail footprint for its cannabis retail concept Prairie Records. Westleaf also has two significant production facilities under construction - Thunderchild Cultivation in Battleford, Saskatchewan and The Plant extraction, processing and product formulation facility in Calgary, Alberta. Both are scheduled for completion in 2019. For more information, please visit www.westleaf.com or www.prairierecords.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
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 relate to, among other things, (i) cannabis stores that Westleaf plans to open; (ii) the construction of Westleaf's production facilities and the timing for completion of same; (iii) commencement of production at Westleaf's production facilities; (iv) the Plant providing a competitive advantage by being adaptive to consumer needs; (v) products and brands to be produced from Westleaf's production facilities and the products and services that Westleaf plans to offer; (vi) timing of provincial and federal regulatory approvals; (vii) timing of legalization of certain derivative cannabis products; (viii) changes in cannabis consumption habits among Canadians; (ix) the processing and production capabilities of Westleaf's extraction and cultivation facilities; and * The Plant contributing to Calgary's economic resilience and diversification. 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: risks relating to the ability to obtain or maintain licences to retail cannabis products; review of Westleaf's production facilities by Health Canada and receipt of licences from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf's production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf's credit facilities; timing and completion of construction of Westleaf's production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. 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 news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
1 BDS Analytics – Colorado Adult Use Market – January 2019 to April 2019.
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