VANCOUVER, British Columbia, May 06, 2021 (GLOBE NEWSWIRE) -- BC Craft Supply Co. Ltd. (the “Company” or “BC Craft”) (CSE: CRFT) (OTC:CRFTF) (FSE:ZZD1) is pleased to announce that it has entered into an advisory and development agreement (the "Advisory and Development Agreement") with Jordache Commodities Ltd. (the “Consultant” or “Jordache Commodities”) dated May 5, 2021 to manage and develop the Company’s Medcann facility located in Chemainus, British Columbia (the “Consulting Agreement”).
Terms of the Advisory and Development Agreement
In connection with the Advisory and Development Agreement, the Consultant will finance up to $2 million for the development of the Medcann facility (the “Advance”).
Under the terms of the Advisory and Development Agreement, the Consultant will manage the reconstruction of the Medcann facility, provide ongoing day to day operations of the facility including staffing, construction and operation budgets, provide recruitment of revenue contracts for the facility and such other duties as required by the Company.
The Advance will be partially satisfied by BC Craft with the issue of an aggregate of five (5) million common shares in the capital of the Company (the “Common Shares”) at an attributed aggregate value of $275,000. The Common Shares will be issued on the later of: (i) four (4) months and one (1) day from the effective date of the agreement; and (ii) the date of which the construction of the Medcann Facility is completed. The remainder of the Advance will be repaid from the net profits from the Medcann facility. Upon the full repayment of the Advance from the issuance of the Common Shares and the net profits generated from the Medcann facility, the Consultant and the Company will share in the profits generated from Medcann facility operations (49% for the Company and 51% for the Consultant) under a five year term, or until the parties mutually agree to terminate the agreement. The Company will also issue an aggregate of 2.5 million stock options (each a “Stock Option”) exercisable for a period of two (2) years from issuance with an exercise price of $0.10 per Stock Option. 1 million of the Stock Options will vest upon completion of the construction stage of the facility and commencement of initial operations, another 1 million of the Stock Options will vest upon Medcann realizing $250,000 in gross revenue and the remaining 500,000 Stock Options will vest upon receipt of a sales license amendment that allows recreational sales.
All securities issued will be subject to a 4 month and 1 day statutory hold period from issuance.
Jordache Perrin, President of Jordache Commodities states, “Jordache Commodities is pleased to be moving forward with this transaction, as it will accelerate domestic and international growth and support local craft growers in Canada”.
Matthew Watters, CEO of BC Craft stated, “In addition to restoring our Medcann facility, which will open up medical sales revenue lines for the Company, our new partnership with Jordache Commodities allows us to add the power of in-house manufacturing and processing to the services we provide. Launching this facility is a critical step in our journey to be the premier aggregator helping growers, brands, and innovative products go to market. We look forward to working with Jordache for the good of cannabis”.
For further information please contact Matthew Watters, Director, at (604) 687-2038.
About BC Craft Supply Co. Ltd.
Based in Vancouver, British Columbia, BC Craft Supply Co. has aggregated the best legacy-era talent from Canada's craft cannabis industry, which boasts an international reputation. The team at BC Craft supports the most trusted cannabis cultivators in Canada to transition into their supply chain, bringing with them their unique cultivars and years of experience with the plant. In exchange for support with licensing, compliance and distribution, cultivators will sign on as a BC Craft supplier. This makes BC Craft uniquely positioned to be the premium cannabis brand in Canada.
BC Craft’s subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a license to sell medical cannabis products in Canada.
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CONTACT
Matthew Watters, Direct Phone: 604-687-2038
Email: mwatters@bccraftsupplyco.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking information in this press release includes statements relating to the services to be provided by Jordache Commodities pursuant to the Advisory and Development Agreement, the repayment of the Advance, the development of the facility and the Company’s ability to be a premier aggregator in helping growers, brands and innovative products go to market. Although the Company believes that the material factors, expectations and assumptions expressed in such forward- looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Accordingly, readers should not place undue reliance on forward-looking statements. BC Craft disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.