Sugarbud Announces Wholesale Distribution and Supply Agreement for the Province of Saskatchewan with National Cannabis Distribution
CALGARY, April 13, 2020 /CNW/ - Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased to announce that it has entered into an exclusive wholesale distribution and supply agreement with National Cannabis Distribution ("NCD") for the Province of Saskatchewan.
Under the terms of the agreement, NCD will act as the exclusive provincial wholesaler and distributor for Sugarbud and/or its intermediaries to authorized private retailers in the Province of Saskatchewan for an initial period of two years. The supply agreement will initially encompass Sugarbud's craft cannabis dry flower products and will be amended to include new product offerings as they become available and approved for sale in the Province of Saskatchewan.
Unlike many other Canadian provinces, Saskatchewan has a unique private wholesale and retail cannabis distribution model," stated Sugarbud CEO, John Kondrosky. "Our partnership with NCD provides us with a clear route to market and is a strong endorsement of both Sugarbud's approach and product offering. Our agreement with NCD also marks a very important first step in our commercial rollout and entry into our target Canadian markets for adult use recreational cannabis products. Sugarbud and NCD share common goals, a passion for exceptional cannabis products and an unwavering commitment to quality and the consumer experience. We are extremely pleased to be partnering with an organization like NCD and look forward to launching our Craft Cannabis Collection in Saskatchewan in the very near future," concluded Mr. Kondrosky.
"National Cannabis Distribution is focused on curating the best assortment of products for our retail partners and we look forward to offering the Sugarbud Craft Cannabis Collection to the Saskatchewan marketplace," stated NCD President of Operations, Eleanor Lynch.
The terms and conditions of the agreement remain subject to customary licensing and regulatory approvals. As previously reported Sugarbud submitted its sales license amendment for dried cannabis to Health Canada in February 2020 and expects to receive approval in the second half of 2020. Sugarbud currently expects to launch its first recreational premium dried cannabis products in late Q3 2020.
READ: Sugarbud Provides Update on Operations and COVID-19 Preparedness
About Sugarbud
Sugarbud is a federally licensed Alberta based craft cannabis company, focused on the cultivation and production of genetically diverse, high quality, select-batch cannabis products. Our mission is to delight the most discerning cannabis consumer and evolve the way people think about incorporating cannabis into their daily lives.
About National Cannabis Distribution
National Cannabis Distribution is a Canadian consumer-focused company that distributes cannabis products and cannabis accessories across a broad network in Saskatchewan and Canada.
Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning: Sugarbud's assessment of future plans, operations and cannabis cultivation, including the shipment of the first commercial batch of cannabis and the launch its first adult recreational premium dried cannabis products and the timing thereof; the Company's ability to remain operating in accordance with developing public health efforts to contain COVID-19; product quality; the supply agreements and partnerships; and the timing of obtaining necessary approvals required to conduct the contemplated business of the supply agreements. When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Sugarbud. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Sugarbud believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: currently contemplated expansion and development plans may cease or otherwise change; production of cannabis may be lower than expected, Sugarbud may not obtain the required approvals from Health Canada, including approving an amendment to its dried cannabis sales licence to permit interprovincial sales; demand for Sugarbud's products may be lower than anticipated; results of production and sale activities; results of scientific research; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; failure to maintain consumer brand recognition and loyalty of customers; reliance on relationships with wholesalers and retailers for distribution of products and failure to maintain strategic business relationships; intense competition, including from illicit sources; uncertainty and continued evolution of markets; product liability litigation; reliance on information technology; infringement on intellectual property; failure to benefit from partnerships; sensitivity of end-customers to increased sales taxes and economic conditions; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; actions and initiatives of federal and provincial governments and changes to government actions, initiatives and policies and the execution and impact thereof; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; risks inherent in the agricultural business, such as insects, plant diseases and similar agricultural risks which can have a significant impact on the size and quality of the harvest of cannabis crops; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by Sugarbud with securities regulatory authorities. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remain unknown, rapid spread of the COVID-19 virus may have a material adverse effect on global economic activity, and can result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to Sugarbud's most recent annual information form and management's discussion and analysis for additional risk factors relating to Sugarbud, which can be accessed under Sugarbud's profile on www.sedar.com. Except as required by applicable laws, Sugarbud does not undertake any obligation to publicly update or revise any forward-looking statements.
Neither the TSXV 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.
SOURCE SugarBud Craft Growers Corp.
John Kondrosky, Chief Executive Officer, Sugarbud Craft Growers Corp., Phone: (604) 499-7847, E-mail: [email protected]; Investor Relations Contact, Gary Perkins, President, Tekkfund Capital Corp., Tel: (416) 882-0020, E-mail: [email protected]; Website: http://www.sugarbud.ca/; Address: Suite 620, 634 - 6th Avenue S.W., Calgary, Alberta T2P 0S4
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