Vancouver, British Columbia (April 1, 2020) – 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, is pleased to announce that it has signed a non-binding letter of intent (the “LOI”) with Christina Lake Cannabis Corp. (“CLC”).
The LOI contemplates that CLC will contract SpeakEasy to process and sell cannabis biomass and cannabis flower produced at their CLC production facility and SpeakEasy intends to provide, upon receipt of the appropriate licences, processing of biomass and flower, sales and distribution of the flowers and work jointly with CLC to develop and produce white label, value added products made from CLC input material.
Contract processing for CLC will make use of SpeakEasy’s process facility to become an additional revenue stream. The additional material is expected to aid in SpeakEasy’s ability to keep up to expected domestic and international markets.
Climatic region, genetics and growing techniques of CLC, being similar to SpeakEasy’s methods, allows for easy cooperation and sharing of supplies, equipment and technology between the two companies. Growers on both farms have vast experience, therefore it is expected that the finished product will be comparable and will market well together. Founder Marc Geen states, “I’m thrilled to be working with the team from Christina Lake Cannabis, we’ve known each other for years and I couldn’t be happier to have our two families cooperating together.” SpeakEasy anticipates that it will have a strong effect on the market with the cost of its flower produced outdoors being comparatively lower than the industry average. Having additional supply of extremely competitively priced material will allow us to enter more supply agreements with Province’s across Canada.
SpeakEasy is working with and supporting local growers and producers both large and small here in BC with a goal of promoting “BC Bud” as a globally recognized brand. Founder, Marc Geen states, “Working with other like-minded growers towards a common goal is extremely exciting, it happens in all other forms of farming for very good reason. We have so many advantages growing in BC, working with fellow farmers can compound those advantages.”
About Christina Lake Cannabis Corp.
All information in this news release relating to Christina Lake Cannabis Corp. is the sole responsibility of Christina Lake Cannabis Corp. Management of SpeakEasy has not independently reviewed this disclosure nor has SpeakEasy’s management hired any third party consultants or contractors to verify such information.
Christina Lake Cannabis Corp. is a licenced producer under the Cannabis Act having received its Standard Cultivation Licence from Health Canada on March 27, 2020. Christina Lake Cannabis Corp has also applied for a Research & Development License to support its cultivation objectives and long-term product development strategies. CLC’s Facility is a 32-acre property including over 870,000 square feet of outdoor grow space, offices, propagation and drying rooms. CLC plans to cultivate cannabis using strains specifically developed for outdoor cultivation and is planning to produce up to 17,700 kg from its 32-acre facility before developing it’s adjoining 99-acre expansion property, which will bring it’s cultivation footprint to over 4.35 million square feet or over 88,000 kg of low-cost, high-quality, sun-grown cannabis annually.
For more information about Christina Lake, visit www.clcannabis.com
SpeakEasy also announces the issuance of 600,000 common shares in the capital of the Company (the “Common Shares”) in settlement of a bona fide debt owed to an arm’s length creditor in the amount of $180,000. 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.
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 recently completed the development of its 60-acre outdoor field. The Company’s intention, upon receipt of an amendment to its current licence to include the outdoor cultivation area, is to produce approximately 70,000kg of outdoor, sun grown cannabis in 2020.
For more information about SpeakEasy, visit speakeasygrowers.com.
For further information:
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 intention to complete the transactions and services contemplated in the LOI and its expectations that such transactions and services will become an additional revenue stream, its expectation that the additional material will aid SpeakEasy’s ability to keep up to expected demands; its expectations regarding domestic and international markets, its expectation that finished product will be comparable and will market well together, its expectation that its cost of flower will be comparatively lower than industry average permitting it to enter into more supply agreements, its intent to produce and sell high quality craft cannabis, its expected production output upon receipt of an amendment to its current licence and the timeframe associated with such production output, 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.