OTTAWA, Aug. 06, 2019 (GLOBE NEWSWIRE) -- Eureka 93 Inc. (CSE: ERKA, “Eureka93” or the “Company”), one of North America’s largest hemp-derived cannabidiol (CBD) extraction and processing companies, today announced that it has refocused its growth strategy for the Company in conjunction with the filing of its Annual Information Form.
Based on long-term growth opportunities in the U.S. and leveraging the Company’s extraction expertise, Eureka93 management has decided to focus its growth efforts on expanding its hemp-derived CBD business in both the United States and Canada, specifically processing and distributing CBD-based products. As a result of its refocused growth strategy, the Company has decided not to pursue any business involving non-hemp cannabis.
“By focusing our efforts on hemp-derived CBD, we expect to drive greater value for our stakeholders,” said David Rendimonti, CEO, Eureka93. “We can consistently extract and produce CBD products from hemp at scale, and we believe that leveraging that expertise will enable us to capture greater market share in the U.S. and Canada.”
U.S. Hemp-Derived CBD Growth Strategy
The Company’s Montana facility is fully operational and can consistently produce up to 8,000 litres of full plant extract per month, subject to biomass availability. This full plant extract may be sold at this point or may be further refined and isolated to create up to 800 kilograms of CBD isolate per month (assuming minimum 10% CBD hemp biomass). In May 2019, the Company registered this facility with the FDA.
The Las Cruces, New Mexico, facility (the “New Mexico facility”) was acquired during the first quarter of 2019. Subject to available capital, management plans to convert this to a GMP facility in anticipation of FDA regulations and to better position the Company to gain market share. Subject to completion of the engineering review, management has estimated a capital investment of approximately US$25 million, with an estimated timeline to complete of six to nine months post breaking ground. This significantly larger facility is expected to increase the Eureka93’s current extraction capacity by approximately 2,000,000 kg (2,000 metric tons/4,409,250 lbs) of hemp biomass per month. At full production capacity, this would generate up to an additional 70,000 kgs (70 metric tons/154,324 lbs) of CBD isolate per month.
Canadian Hemp-Derived CBD Growth Strategy
Assuming the Company’s Ottawa, Ontario, location is successful in obtaining a Standard Cultivation Licence, cultivation will focus on growing industrial hemp with the goal of producing and distributing CBD isolate and full-plant extract oil. The Health Canada Standard Cultivation Licence will enable Eureka93 to distribute hemp-derived CBD products to Canadian Licensed Producers. The Company is diligently working directly with Health Canada in responding to inquiries regarding this application.
Subject to obtaining relevant licensing from Health Canada, the Company also plans to expand its Windsor, Ontario, location for future CBD-based health and wellness product manufacturing as well as advanced research and development. This facility contains 20 pharmaceutical-grade clean rooms, is certified by Health Canada, has NSF certifications for GMP and Sport, is a USDA-Certified Organic Manufacturer, and is an FDA-registered facility.
About Eureka93
Eureka93 is a multi-faceted CBD life sciences company with significant U.S. assets and operations, dedicated to the extraction, production, and distribution of CBD, a naturally occurring, non-psychoactive compound found in the hemp plant. With facilities in Eureka, Montana, Ottawa, Ontario, and Windsor, Ontario, the vertically integrated company is dedicated to producing the highest-quality CBD products for its customers. Eureka93 is a design-driven company for creative solutions in systems, products, packages and services. For more information visit, Eureka93.com
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Forward-looking statements include all disclosures regarding possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Often, but not always, forward-looking statements can be identified by the use of words or phrases such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, and may be based on management’s current assumptions and expectations related to all aspects of the Company’s business, industry and the global economy. Further, the Company cautions that this foregoing list of material factors is not exhaustive and additional information identifying risks are detailed from time to time in the Company’s other continuous disclosure filings.
The forward-looking information contained in this press release represents expectations of the Company as of the date of this press 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 securities laws.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Eureka 93 Inc.
For more information:
Investors
Conrad Seguin
437.226.7002 or cseguin@eureka93.com
Media
Sónia Brum
647.338.7381 or sbrum@eureka93.com
Company
David Rendimonti, Chief Executive Officer
819.718.2042