Kief Cannabis Company Ltd. Announces $2 Million Financing to Complete Phase 1 of Cannabis Production Facility in Light of Receiving the Confirmation of Readiness Letter from Health Canada
Completing its Cannabis production facility in Selkirk, Manitoba, Canada will enable Kief Cannabis Company Ltd. to enter the recreational marijuana market only months after legalization.
SELKIRK, MB, Sept. 5, 2018 /CNW/ - Kief Cannabis Company Ltd. ("Kief Cannabis"), a Manitoba-based late-stage ACMPR applicant that has received its Confirmation of Readiness Letter from Health Canada, announced today that it intends to raise $2 million by October 2018 to complete the first of two phases required to bring its production footprint to 10,000 square feet. A total of 411,000 common shares, representing 27% of the outstanding equity of Kief Cannabis, will be sold at a price per share of $5.35 to existing and new shareholders. Kief Cannabis intends to use said proceeds to complete construction on the first of two phases in its staged facility build-out and fund the first year of operations. Phase 1 of the facility build-out is expected to be completed by January 2018 and will consist of one flower room, two vegetation rooms and associated support facilities. Upon completion of Phase 1 of the facility build-out, Health Canada will conduct a pre-licence inspection, with the licence to cultivate expected to be received by February 2019. Phase 2 of the facility build-out, to be funded by a subsequent financing round with an anticipated closing of March 2019, will allow completion of Kief Cannabis' 10,000 square foot facility by June 2019, tripling production capacity and enabling annual production of up to 1,300 kg of premium grade craft cannabis.
In addition, Kief Cannabis is proud to announce that it has recently entered into a wholesale supply agreement with Namaste Technologies Inc. ("Namaste"), the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands.
Management Commentary
Jesse Denton, CEO of Kief Cannabis, comments: "The Federal Government's decision to pass recreational legalization on October 17, 2018 further strengthens Kief Cannabis' position as an up and coming supplier of premium grade craft cannabis. Deloitte's research suggests that the total cannabis market in Canada, is expected to generate up to $7.17 billion in total sales in 2019.
Currently, there are 116 producers licenced by Health Canada, and their combined capacity is not nearly sufficient to meet this demand. There really is no better time to enter into the market. Our advanced stage within the licencing process will allow us to fully capitalize on the legalization of recreational use in Canada. Kief Cannabis is positioned to be fully licenced only months after legalization and has aligned itself with an elite team of high performers. It is our vision to become the leading producer of premium grade craft cannabis in Canada.
With respect to our partnership with Namaste, this company has positioned itself very strategically to become Canada's top cannabis retailer online and their business model is supported by their success in e-commerce both in Canada and international markets. I'm very excited for Kief Cannabis to be aligned with such a major player and look forward to a long-term working relationship with the Namaste team."
Sean Dollinger, President and CEO of Namaste comments: "We're very pleased to announce the supply agreement with Kief Cannabis. We've spent significant time in discussion with their team and believe strongly in our ability to market and sell craft cannabis brands in our platform. We believe that consumers should have access to the best selection of high quality product and we're focused on building relationships with craft brands like Kief Cannabis who will create more value for our patients online."
About Kief Cannabis Company Ltd.
Kief Cannabis was established as a corporation in December of 2013 under the laws of the Province of Manitoba with the goal of producing and delivering craft-style cannabis to the Canadian marketplace. On March 16, 2018, Health Canada provided a Confirmation of Site Readiness letter to Kief Cannabis, and the company has been recognized by the Liquor and Gaming Authority of Manitoba (to be renamed the Liquor, Gaming and Cannabis Authority of Manitoba) as an upcoming supply chain within the Province of Manitoba.
Kief Cannabis is comprised of passionate and determined individuals who will strive to collectively provide exceptionally high quality small-batch craft cannabis strains to recreational users across Canada and create an environmentally-friendly, socially responsible and Canadian-owned company. The initial product line will consist of internationally exclusive and rare strains of cannabis and oils, with the intent to expand into vape-pens, rosins and edible products as they become legal in Canada. Kief Cannabis' unique variety of cannabis strains will appeal to those seeking a more exclusive, premier product with a small-batch craft feel.
Kief Cannabis is currently in its Series A funding stage and intends to raise the capital needed to complete the construction of a state-of-the-art cultivation facility located in Selkirk Manitoba. Once completed, Kief Cannabis shall utilize refined procedures throughout the entire production process to develop exceptionally high-grade products for its end-users.
About Namaste Technologies Inc.
Namaste Technologies is Your Everything Cannabis Store™. Namaste operates the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands. Namaste's product offering through its subsidiaries includes vaporizers, glassware, accessories, CBD products, and the company will soon be selling medical cannabis in the Canadian market, subject to approval by Health Canada.
Namaste has developed and acquired innovative technology platforms including NamasteMD.com, Canada's first Health Canada compliant telemedicine application, and in May 2018 the Company acquired a leading e-commerce AI and Machine Learning Company, Findify AB. Findify uses artificial intelligence algorithms to optimize and personalize a consumer's on-site buying experience. Namaste is focused on leveraging its cutting-edge technology to enhance the user experience throughout its platforms. Namaste will continue to develop and acquire innovative technologies which will provide value to the Company and to its shareholders as well as to the broader cannabis market.
On behalf of the Board of Directors
"Jesse Denton", CEO
SOURCE Kief Cannabis Company Ltd.
Jesse Denton, Founder & CEO, 1-204-298-7467, [email protected]
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