Vancouver, B.C. – SpeakEasy 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, would like to take this opportunity to inform its valued shareholders of the progress made to date with its outdoor operations.
Since receiving the amendment to its license to include the outdoor area in early April, SpeakEasy has been hard at work making preparations for the 2020 grow season. To date, SpeakEasy has created over 90,000 clones and is thrilled to report that the outdoor planting has begun. Founder, Marc Geen states, “This has been a dream come true, many years in the making. A lifetime of farming has taught me that very few things go exactly according to plan and this year is no exception. We find ourselves ahead of schedule at this point, not something I’m accustomed to. Huge credit is due to our amazing crew of hard- working men and women whose enthusiasm, devotion and commitment has brought us to where we are today.”
The completed outdoor field on a beautiful spring evening
Although we have received more rain this spring than normal, temperatures have been above average, the plants have responded very well to the transition from indoor to outdoor life and are growing vigorously. With the ideal climate in Rock Creek for outdoor cannabis cultivation, combined with our genetics which are perfectly suited to this area, we expect a bumper crop this season. Crews are working 7 days a week and planting is expected to continue through most of June.
Healthy plants ready to go outdoors
Our internal projections remain at approximately 70,000 kilograms total harvest, 22,000 kilograms of flower and 48,000 kilograms of biomass. Upon receipt of appropriate amendments to its current licence, the Company intends to sell flower as a finished smokable product, made into pre-rolls and used in extractions for concentrates. Bulk biomass will be extracted on site and made into distillate for bulk sale and in-house value-added products.
With sales in the legal Canadian cannabis market steadily increasing due to many factors, SpeakEasy finds itself in just the right place at just the right time. SpeakEasy’s low cost of production makes it competitive, not only within the Canadian legal market, but compared with unregulated market as well. Recent announcements from the BC provincial government suggest movement towards a farm gate model that would allow sales directly from LP’s to the public and the ability to have dispensaries on production sites. CEO, Bin Huang states, “The Company has had the customers wants and needs in mind from the very beginning, and although it seems like a basic concept, it’s a concept that has been missing in this industry. SpeakEasy has been designed from the ground up to be able to provide our customers the products they want at a price they can afford.”
We have all been challenged this year with Covid-19 at the very least making everything more difficult and we, at SpeakEasy, feel very fortunate we have made it through this situation so far with no cases affecting our crew and no significant effect on our operation. Protocols have been implemented to protect our team and ensure work continues on schedule and we are happy to report that everything is moving along well. Founder, Marc Geen states, “The stage is set for SpeakEasy to enter the market this fall in a big way and it’s time for us to show what we can do. Our indoor harvests have been 25% higher than internal projections and of excellent quality. We expect similar results from our outdoor harvest this fall. The pressure is on us and we welcome the challenge.”
SpeakEasy also announces the issuance of 635,944 common shares in the capital of the Company (the “Common Shares”) in settlement of bona fide debts owed to arm’s length creditors in the amount of $228,940. Additionally, the Company will issue 600,167 common shares in settlement of a bona fide debt owed to a non-arm’s length creditor in the amount of $216,060. The Common Shares will be subject to restrictions on resale in accordance with applicable securities laws. These restrictions will expire four months plus a day from the date of issuance. The shares for debt transaction is subject to final acceptance by the Canadian Securities Exchange.
In addition, the Company issued 50,000 Common Shares to an officer of the Company in satisfaction of the Company achieving certain milestones. These Common Shares are subject to restrictions on resale in accordance with applicable securities laws, which restrictions will expire four months plus a day from the date of issuance. The issuance of these shares is subject to final acceptance by the Canadian Securities Exchange.
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 three 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 in its 10,000 square foot indoor facility and has completed the development of its licenced 60-acre outdoor field. The Company expects to complete planting its outdoor cultivation area during Q3, 2020, and to produce approximately 70,000kg of outdoor, sun grown cannabis in 2020.
For more information about SpeakEasy, visit speakeasygrowers.com.
Bin Huang, CEO [email protected] 1-778-668-4339
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 SpeakEasy’s expectations with respect to experiencing a bumper crop in 2020, its expectations that planting will continue through June, its projected aggregate production as well as the breakdown of that production between flower and biomass, the receipt and timing of an amendment to its existing license, its intention to sell “smokeable” product, pre-rolls, extracts and concentrates; its expectations regarding the extraction of biomass on its property and ability to convert that biomass into distillate for bulk sale and value-added products; its expectations regarding the British Columbia government’s move to a farm-gate model; its expectations regarding entering into the market in the fall 2020; its expectations that it will be able to withstand the coronavirus pandemic with minimal disruption to its operations; its expected results from its outdoor grow; its intent to produce and sell high quality craft cannabis, 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 and hemp industries and markets in Canada and generally; the demand for CBD distillate, 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 has not approved nor disapproved the contents of this news release.