EDMONTON, Alberta, July 17, 2018 (GLOBE NEWSWIRE) -- Atlas Biotechnologies Inc. (“Atlas”), the parent company of Atlas Growers Ltd., is pleased to announce that it has entered into an acquisition agreement (the “Agreement”) with Coastline Canada Inc. (“Coastline”) to acquire a 50% equity interest in Coastline. The key terms of the Agreement and information on Coastline are:
- Coastline is a privately held, arms-length party to Atlas, and is a late stage applicant to become a Licensed Producer (“LP”) of cannabis under Health Canada’s Access to Cannabis for Medical Purposes (“ACMPR”) regulations.
- Coastline has secured a nearly 5 acre site (lease for 20 years with 5-year renewal option) that will be used to construct an indoor cannabis production facility on east-central Vancouver Island. Subject to completion of financing, construction is planned to commence in the next 2 months.
- The new facility will be designed for up to 100,000 square feet, with estimated annual production capacity of 42,000 kg.
- Atlas has a first right of refusal to participate in any future equity financings which will be conducted by Coastline, which will allow Atlas to retain a minimum 50% equity interest if desired.
- Atlas will have 50% representation on the Coastline Board of Directors, along with a casting vote.
- In exchange for acquiring its 50% interest, Atlas will grant Coastline access to its intellectual property, which currently consists of expertise with the LP process, indoor cultivation expertise, securing of sales channels, and engineering designs, plans and experience related to the construction of Atlas’ own 38,000 square foot facility near Edmonton (scheduled for completion in September 2018).
- The Coastline facility will initially be intended to produce cannabis for the adult use, recreational market, while taking advantage of synergies with the Atlas team and its cannabis extraction and processing laboratories.
Sheldon Croome, Atlas President & CEO, indicated, “We have known the principals of Coastline for some time, and view this as a great opportunity for their shareholders to accelerate their business plan by drawing on synergies available from the experience and expertise of the Atlas team. The Agreement also brings strong value to Atlas as it gives our team the opportunity to diversify our production base geographically in Canada, increase available production capacity, and the option to maintain a minimum 50% interest in Coastline’s operation.”
About Atlas Growers Ltd.
Atlas Growers Ltd. (“Atlas”) is based in Edmonton, Alberta, Canada and is a wholly owned subsidiary of Atlas Biotechnologies Inc. Atlas has applied for, and expects to receive in Q3 2018, its cultivation and sales licenses under Health Canada’s ACMPR. Atlas’ initial purpose-built 38,000 square foot facility is nearing completion and will have the capacity to produce cannabis concentrates and up to 5,000 kg of dried cannabis annually. Further, the existing Atlas site could potentially allow for future expansion of up to 12,000,000 square feet of production capacity. Atlas is well financed and has an unutilized $6.25 million bank facility in place with ATB Financial.
For further information contact:
Jeffrey R. Gossain, P. Eng.
Vice President of Operations
Phone: 780-784-5920
Email: invest@atlasgrowers.com
Website: www.atlasgrowers.com
Graeme Dick, BMgmt
Colwell Capital Corp.
403-561-8989
graeme@colwellcapital.com
Dean Stuart
403-617-7609
dean@boardmarker.net