CALGARY, Alberta, April 15, 2020 (GLOBE NEWSWIRE) -- Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT) ("Sugarbud") is pleased to announce that it has entered into a third-party licensing and distribution agreement (“Agreement”) with Agro-Greens Natural Products Ltd. (“Agro-Greens”) to sell and distribute Sugarbud’s Craft Cannabis Collection to authorized provincial wholesalers and retailers in Alberta, British Columbia and Saskatchewan. The agreement with Agro-Greens is subject to customary regulatory, licensing and new product notification requirements.
Under the terms of the agreement, Sugarbud will process and package its own craft cannabis dried flower products and Agro-Greens will act under a license from Sugarbud as the authorized sales and distribution intermediary between Sugarbud and authorized provincial wholesalers and retailers.
The Company’s agreement with Agro-Greens also covers the time between today’s announcement and when Sugarbud expects to receive authorization from Health Canada to sell its craft cannabis dried flower products directly to provincially authorized wholesalers and retailers. As previously reported Sugarbud submitted its license amendment application in February 2020 and expects to receive its sales license in the second half of 2020.
Under the terms of this agreement and subject to customary regulatory approvals and new product notifications, Sugarbud now expects to begin shipping its Sugarbud branded craft cannabis dried flower products to authorized provincial wholesalers and retailers within the next 75 – 90 days, significantly earlier than the late Q3 launch date provided in previous guidance.
READ: Sugarbud Provides Update on Operations and COVID-19 Preparedness
“Our partnership with Agro-Greens is a major step forward in the evolution of our Company and will help maximize the value of Sugarbud products. Together with our previously announced wholesale distribution agreement with National Cannabis Distribution in the Province of Saskatchewan, our partnership with Agro-Greens both solidifies and accelerates our entry into our core focus markets,” stated Sugarbud CEO, John Kondrosky.
“Our entry into the adult use recreational cannabis market in Canada is a major catalyst for the company and we couldn’t be more excited to be partnering with Agro-Greens to advance our plans to bring the Sugarbud Craft Cannabis Collection to our target markets and consumers in Alberta, British Columbia and Saskatchewan,” concluded Mr. Kondrosky.
“Sugarbud is a good example of the new wave of licensed producers that are coming online now, and we are really excited to help them bring their product to market,” said Jeremy Vokins, Managing Director of Agro-Greens.
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 Agro-Greens Natural Products Ltd.
Located in the Canadian heartland, Agro-Greens Natural Products Ltd. is a family-run Health Canada licensed producer. Proud to follow a long line dedicated to the prairie tradition of agricultural excellence, Agro-greens produces craft-quality, medical cannabis for those suffering from chronic pain and illnesses, acts as a processor for Micro-cultivators, and operates the medical e-commerce platform https://sheltermarket.ca/ in conjunction with Shelter Cannabis.
John Kondrosky
Chief Executive Officer
Sugarbud Craft Growers Corp.
Phone: (604) 499-7847
E-mail: johnk@sugarbud.ca
Investor Relations Contact
Gary Perkins, President
Tekkfund Capital Corp.
Tel: (416) 882-0020
E-mail: garyperkins@rogers.com
Website: http://www.sugarbud.ca/
Address: Suite 620, 634 - 6th Avenue S.W., Calgary, Alberta T2P 0S4
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.
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