(Image Credit - Canadian Bioceutical Corp.)
TORONTO, May 31, 2017 (GLOBE NEWSWIRE) -- The Canadian Bioceutical Corporation (the “Company” or “BCC”) (CSE:BCC) (OTCQB:CBICF) today announced that one of the two Health for Life dispensaries supported by the Company in Arizona has been relocated and reopened successfully, with strong sales recorded in its first week of operations.
The new facility, Health for Life Mesa North, has been relocated to a more commercial-type environment, with substantially higher traffic and population densities, factors shown to have a positive correlation with sales. The new dispensary was professionally designed utilizing retail optimization parameters, and will be the blueprint for all future Health for Life dispensaries. Based on completed and in-process acquisitions, the Company expects developing at least seven further dispensaries in Arizona, Massachusetts and Maryland within the current financial year, to reach a total of 10 throughout the U.S.
Record One-Week Sales
The new 2,500 square foot facility attracted 157 new patients during its first week of operations who had not previously visited a Health for Life dispensary. Sales in excess of US$250,000 (approximately CAD$335,000) were recorded, and more than double (+113.5%) same week sales at the old Mesa North dispensary in 2016 and a one-week record for Health for Life North.
“Initial customer feedback, evidenced by record one-week sales, shows that the design, layout and location of the new dispensary have each contributed towards an improved visitor experience,” stated Beth Stavola, President of U.S. operations for BCC. “This win-win outcome for both our customers and ourselves, we believe, clearly validates the relocation, as well as provides a blueprint for the introduction of the Health for Life brand at new locations in Arizona, Massachusetts, Maryland and potentially, in Nevada and other states.”
Scott Boyes, BCC’s CEO, added, “While increased promotional activities around the opening of the new dispensary will have undoubtedly contributed to a positive 'first-week' effect, we anticipate the annualized sales at the new location will be sustainably higher than was recorded at the previous Mesa North facility, an assumption supported by the considerable growth in the number of new patients that visited during our opening week.”
Expanding Cultivation Capacity
At the new location, the Company will also support the development of additional cultivation capacity. Upon completion, total capacity is expected to double from the current 1.6 million grams per annum to 3.2 million grams per annum. Completion of the build out is anticipated by the end of 2017.
Stavola added, “With over 125,000 registered card holders, the Arizona medical cannabis market is similar in size to the entire current Canadian market, and continues to develop rapidly. Considering general market trends, as well as our own organic growth and acquisition-driven expansion, doubling our capacity in Arizona will enable us to continue to meet demand from our expanding customer base.”
About The Canadian Bioceutical Corporation
BCC, an Ontario corporation, through its wholly owned subsidiaries in the U.S., provides substantial management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to two medicinal cannabis enterprises in Arizona operating under the Health for Life (dispensaries) and MPX (high-margin concentrates wholesale) brands. The successful Health for Life (“H4L”) brand operates in the rapidly growing Phoenix Metropolitan Statistical Area (MSA) with a population of 4.6 million people. The award winning Melting Point Extracts (“MPX”) brand is carried by over 40% of Arizona dispensaries.
The Company is also supporting development of a third licensed dispensary in Arizona, expected to be operational during the third quarter of this year. Additionally, BCC is expanding its U.S. footprint, acquiring additional assets supporting cultivation, production and up to three dispensaries in Massachusetts, three to-be-developed dispensaries and a concentrate production facility in Maryland, as well as a cultivation and production wholesale business in Las Vegas, Nevada. Both Massachusetts and Nevada are implementing legalization of adult use.
The Company also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license. In addition, the Company will continue its efforts related to its legacy nutraceuticals business.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the completion of the announced acquisitions in Arizona, Maryland, Massachusetts and Nevada, expansion of cultivation capacity and concentrate yields, the Canadian and U.S. political and regulatory environment, availability of financing and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments, completion of the announced acquisitions in Arizona, Maryland, Massachusetts and Nevada, delay of expansion of cultivation capacity and concentrate yields, availability of financings, delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.