TORONTO, Oct. 26, 2017 (GLOBE NEWSWIRE) -- The Canadian Bioceutical Corporation (the “Company” or “BCC”) (CSE:BCC) (OTC:CBICF) today announced it has completed preparatory construction work and commenced detailed planning for the full build-out of its cannabis cultivation facility in Owen Sound, as well as provided an update on its application with Health Canada to obtain Licensed Producer status under the Access to Cannabis for Medical Purposes Regulation (“ACMPR”).
On January 7, 2015 the Company announced that its subsidiary, BioCannabis Products Ltd., had filed a Marijuana for Medical Purposes Regulations application with Health Canada, and subsequently updated its application under the ACMPR. On August 23, 2017 the Company was advised that its application was at the Detailed Review and Initiation of Security Clearance Process stage. Consequently, BCC has decided to commence further planning for the build out of its facility. Preparatory work on power and certain other utility systems has been completed, and the Company has now commenced more detailed design work for completion of the facility. The Company anticipates being ready to commence cultivation in the latter half of 2018 for final inspection by Health Canada. No assurances can be given at this point on the timeframe for inspection and potential subsequent granting of Licensed Producer status.
“Commencing the full build-out of our Owen Sound facility is a very significant milestone in the execution of our Canadian strategy,” stated Scott Boyes, CEO. “We have considerable cultivation experience through our operations in the U.S. and, through the use of innovative hydroponic rotary cultivation technology, we anticipate becoming a low-cost producer of high-quality products, including concentrates. Our go-to-market strategy is based on leveraging our award-winning concentrates brand MPX, which has proven highly successful in the U.S. We believe that the quality of MPX products, and our experience in sales and marketing, will enable us to build up market share in this high-growth segment of the market.
In getting to this stage, we’ve received significant support from the local community in Owen Sound, including a letter of support from the MP for Bruce-Grey-Owen Sound, the Honourable Larry Miller, as well as a recently updated letter of support from Owen Sound’s Fire Chief, Doug Barfoot; Chief of Police, William Sornberger; and M.O.M. and Mayor Ian C. Boddy. We thank them for their patience and very meaningful support. We look forward to updating our various stakeholders on progress, both in regards to construction and to our ACMPR application, and look forward to expanding our successful MPX brand into the medical market, and upon legalization, the adult use market.”
To support its efforts in obtaining Licensed Producer status, and to ensure all Health Canada conditions are met, BioCannabis has engaged with the following service providers:
Bennett Jones: one of Canada’s leading law firms with significant experience in mediation with Health Canada;
David Hyde & Associates: a full service security management and business risk consulting and training practice to assist with the Company’s proposed site security plan;
Eurofins Scientific: an international life sciences company for review and consulting in regard to the Company’s Standard Operating Procedures (completed);
Ample Organics: a seed-to-sale software solution to facilitate compliance with Health Canada’s ACMPR reporting requirements; and
Sketch Design Build Inc: a design consultant for floor plans and design, as re-submitted to Health Canada.
BioCannabis’ current lease encompasses a 72,342 square foot facility located within the City of Owen Sound, Ontario. The building’s first phase, upon approval of a pre-license inspection from Health Canada, will house in excess of 20 growing rooms, a drying area, trimming room, packaging area, a substantial vault, a laboratory, extraction and testing facility, a below-grade highly-secure shipping and receiving compound, as well as administrative offices and staff support areas. The building also allows for future expansion of up to an additional 402,658 square feet of grow space, for a total of 475,000 square feet.
Based on the design of its facility and use of innovative technology, the Company anticipates achieving a cultivation capacity of approximately 8,000 kg per year of high-quality flower, as well as over 300 kg per year of high-quality, high-margin concentrates produced from the trim from the Company’s cultivation. Acquiring trim from third parties would increase the annual concentrates production.
The basic building and utilities preparation for the initial 72,342 square foot of Phase I has been completed. The Company anticipates further construction to commence within 120 days, with completion expected for summer 2018, in line with the anticipated commencement of adult use sales. Management projects construction costs through to completion to be in the range of $5-6 million.
More information regarding the application process for licensed producers can be found on Health Canada’s website at https://www.canada.ca/en/health-canada/services/drugs-health-products/medical-use-marijuana/licensed-producers/application-process-becoming-licensed-producer.html
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 the award-winning Melting Point Extracts (“MPX”) (high-margin concentrates wholesale) brands. The successful Health for Life (“H4L”) brand operates in the rapidly growing Phoenix Metropolitan Statistical Area (MSA). The Company also owns assets in Massachusetts, supporting cultivation, production and up to three dispensaries in Massachusetts, as well as is supporting development of a third licensed dispensary in Arizona.
BCC continues to expand its U.S. footprint, being in the process of acquiring a cultivation and production wholesale business in Las Vegas, Nevada, and three dispensaries and a production license in Maryland. 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 to develop 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, 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; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR atwww.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.