ROCK CREEK, BC – February 11, 2022 – Cannabis Club Ltd. (CSE: EASY) (Frankfurt: 39H) (the “Company” or “SpeakEasy”), a holder of a federal licence to cultivate, process and sell cannabis under the Cannabis Act is pleased to provide an update on the increase in infused pre-roll sales over the last 30 days. The Company has proudly achieved a record increase of over 100% from the previous month.
SpeakEasy has delivered over 420,000 infused pre-rolled joints, along with products in all of its five categories, delivering over 316,000 grams from its January purchase orders representing a 100% increase over the previous month. Orders for February are strong, as the Company looks to increase substantially by introducing 8 new SKU’s with projected deliveries to commence this month. We have also signed a supply agreement with a leading Canadian LP to provide craft flower for a period of 12 months beginning at 50,000g per month and increasing to a potential maximum of 150,000g per month.
A new and innovative product that has been recently added to SpeakEasy’s catalogue, infused pre-rolls have allowed the Company to provide a product that is high-quality with a very high THC percentage while still being competitively priced.
Since the launch of our successful line of diamond-infused pre-rolls, SpeakEasy has developed two new lines of infused pre-rolls that we expect to begin manufacturing and delivering later this month.
Founder Marc Geen further states, “After years of significant challenges we’re excited to see our hard work paying off. Our sales are speaking for the quality of our finished products. We’re working on processing the 2021 harvest, and our goal is to continue these sales trends into the 2023 fiscal year. As we optimize our outdoor field operations, the next steps are to scale the indoor craft production.”
SpeakEasy received notice from Health Canada that our application for our new facility is in the final approval stage and we expect to have approval for use very shortly. This new facility will allow us to increase our craft flower production to over 350kg per month from our current production of 100kg per month.
Over the last 4 years, SpeakEasy has been focusing on building an infrastructure that would allow the Company to utilize its outdoor facility to its full potential and process the entirety of the outdoor and indoor facility input materials into finished products. The combination of the Company’s capacity, quality, and cost advantage will allow SpeakEasy to continue to innovate and create new products and position itself as a potential leader in its respective space. The Company was recently able to create an infused pre-roll which has been a massive success with our vendors.
Founder, Marc Geen, states “2021 presented many challenges and hurdles in Canada for companies and investors alike. It was however, also a year of growth as we’ve learned to adapt and navigate through the tough times presented by the pandemic. Our outlook for 2022 is positive as we look to accelerate our business forward and navigate into a profitable year with significant revenue growth. The Canadian cannabis industry is still far from maturity and full of potential for a company like SpeakEasy.”
We are eagerly anticipating the return of our audited financial statements and accompanying management discussion and analysis for the fiscal year ended July 31, 2021 (the “Required Filings”) from the auditors and will be immediately releasing them once available. Additionally, we will release our Q1 financials and include a sales update and an investors call to address shareholders questions. With a seemingly near end in sight to the pandemic, we are all excited to get back to business as normal and have consistent on time financial releases.
The Company continues to adhere to the Management Cease Trade Order (“MCTO“) previously announced on December 3, 2021.
The Company confirms that since the date of the Original Announcement on November 25, 2021: (i) there has been no material change to the information set out in the Original Announcement that has not been generally disclosed; (ii) there has been no failure by the Company in fulfilling its stated intentions with respect to satisfying the provisions of the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”); (iii) other than the Company’s inability to file its financial statements and accompanying management discussion and analysis for the interim period ended October 31, 2021 until the required filings are made, there has not been any other specified default by the Company under NP 12-203; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed. The Company confirms it will continue to satisfy the provisions of the alternative information guidelines set out in NP 12-203 so long as it remains in default of the requirement to file the Required Filings.
About SpeakEasy Cannabis Club Ltd.
SpeakEasy Cannabis Club Ltd. holds a cultivation, processing and sales licence issued by Health Canada under the Cannabis Act. SpeakEasy owns 290 acres of land in Rock Creek, British Columbia, and leverages five generations of farming experience in B.C. as well as its favourable location to grow and process high-quality cannabis products at low cost. SpeakEasy cultivates small batch, high quality craft cannabis at scale in a portion of its 63,200 square foot indoor cannabis complex and has completed its harvest of its 60-acre outdoor field.
On behalf of the Board of the Directors
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This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause SpeakEasy’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this document include statements concerning its expectation concerning the introduction of new SKUs and the timing thereof, its expectation that it will receive final approval from Health Canada for its facilities, the timing thereof and the expected production increases from such facility, its intention to continue to innovate and create new products and position itself as a potential leader in its respective space, its intention to file the required financial statement filings and the anticipated timing thereof, the Company’s ability to continue to satisfy the requirements of NP 12-203 and all other statements that are not statements of historical fact.
Although SpeakEasy believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with the global COVID-19 pandemic, including the risk that the Company be deemed a non-essential business and asked to temporarily cease operations; general economic conditions; adverse industry events; future legislative and regulatory developments involving cannabis; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the cannabis industry in Canada and generally; the demand for cannabis and cannabis related products, the ability of SpeakEasy to implement its business strategies; competition; the ability of SpeakEasy to obtain and retain all applicable licences under the Cannabis Act and other assumptions, risks and uncertainties.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
The Canadian Securities Exchange nor its Regulation Service has approved nor disapproved the contents of this news release.