VANCOUVER, British Columbia, July 16, 2020 (GLOBE NEWSWIRE) -- New Leaf Ventures Inc. (CSE: NLV) (“New Leaf,” “NLV” or the “Company”), a management and investment organization dedicated to evaluating and accelerating advanced stage operations in the North American Cannabis sector is pleased to advise on operational activities reported by its New Leaf USA team.
New Leaf USA Inc. (and its subsidiaries) provides licenses, consulting services, physical and intellectual property, production equipment and related services to a Washington-based Tier 3 Producer/Processor focused on industrial-scale agronomy, processing, packaging, marketing and distributing cannabis and cannabis related products. While recent global events have created uncertainty in many industries, reports from the Seattle-based team provide strategic insight and cautious optimism for the coming harvest season.
Product Sales Price Increase Averages 28%
- Over the past two years, the cannabis industry in Washington state has experienced stabilization in supply due to consolidation of producers and processors.
- The stabilization has resulted in an increase in wholesale costs of flower and extraction material throughout the regional sector.
- Beginning June 1st, the New Leaf USA licensee competitively matched the industry trend by increasing fees on flower sales to retailers by an average of 28% with virtually no impact to COGS. Retailer acceptance has been positive across the board.
- Based on information gathered from its industry partners, New Leaf USA expects wholesale prices to remain stable throughout the 2020-2021 harvest season, subject to normal seasonal fluctuations.
Harvest Season Preparations
- New Leaf USA has been actively establishing and building relationships with regional producers and processors in preparation for the upcoming harvest season.
- Early light deprivation greenhouse and auto-flower harvests are expected to start in late July, ramping up in August. Large scale outdoor and greenhouse harvests will begin in September through October.
- The license holder anticipates the purchase and processing of several thousand pounds of material in August, ramping up through the fall. New Leaf USA participates in earnings through its licensed IP whereby monthly revenues are earned relative to units sold. Therefore, the more biomass processed and sold ensures positive cash flow to New Leaf USA.
- A portion of purchased material will be packaged and sold via New Leaf USA’s affiliate Weed brand, with the remainder slated for sales in bulk to processors.
Cultivation Facility Upgrades
- New Leaf USA has received funding and initiated a series of upgrades to increase the scope of licensed indoor cultivation facilities.
- Phase one upgrades include higher efficiency lighting with increased light output. The operator expects a 25-35% increase in production volume of usable material based on initial tests of the new lighting configuration.
- The Company has also advanced changes to the drying and curing process that will result in increases in quality of flower production.
- New Leaf USA has authorized the implementation of an integrated software system for scheduling, managing, and tracking cultivation operations. This system will increase efficiencies in the cultivation cycle, improve the ability to identify issues, implement corrective measures and improvements (such as the introduction of new strains), and facilitate inter-departmental communication in support of lean manufacturing processes.
- Phase two upgrades will focus on environmental and process controls within the cultivation facility, resulting in improvements in consistency and quality of overall flower production, packaging and logistics.
Michael Stier, CEO of New Leaf Ventures states, “The reports and activities from our New Leaf USA subsidiary are welcome news. Our investment strategy and management controls are delivering a focused approach to production improvements and a practical pathway to revenue growth. We are delighted by these early successes including news of increased product interest by a growing number of regional retailers and processors. With an increased ability to deliver consistent high-quality products we aim to focus on cost-efficient replicable methods to achieve a dominant role as a leader in best practices and shareholder value.”
About New Leaf Ventures Inc. (CSE: NLV)
New Leaf Ventures Inc. is developing a cannabis sector-based scalable securities concept of focused financing and applied management to achieve earnings growth through targeted investment. The Company’s flagship enterprise is New Leaf USA and its subsidiaries, which provide licenses, consulting services, real property, intellectual property and equipment for lease and ancillary services to a Washington-based Tier 3 Producer/Processor focused on cultivating, growing, processing, packaging, and distributing cannabis and cannabis related products.
For further information, please contact:
New Leaf Ventures Inc.
Invictus Investor Relations
Tel: +1 (604) 343-8661
Email: investors@newleafventuresinc.com
Forward Looking Statement
This news release contains statements and information that, to the extent that they are not historical fact, may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as “may”, “would”, “could”, “will”, “likely”, “except”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook”, or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the Company; ability to realize benefits from its recent corporate appointments; ability to retain its key personnel; the intention to grow the Company’s business and operations; the competitive conditions of the industries in which the Company operates; and laws and any amendments thereto applicable to the Company.
Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to, key personnel and qualified employees continuing their involvement with the Company; and the Company’s ability to secure financing on reasonable terms.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation, risks relating to the future business plans of the Company; risks that the Company will not be able to retain its key personnel; risks that the Company will not be able to secure financing on reasonable terms or at all, as well as all of the other risks as described in the Company’s management discussion and analysis for year ended December 31, 2019 under the heading “Risks and Uncertainties”. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company’s management to predict all of such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.
The CSE does not accept responsibility for the adequacy or accuracy of this release.