TORONTO, April 02, 2018 (GLOBE NEWSWIRE) -- Newstrike Resources Ltd. (TSXV:HIP) ("Newstrike" or the "Company"), is pleased to announce that its wholly-owned subsidiary and licensed producer of cannabis, Up Cannabis Inc. (“Up Cannabis”), has received a producer’s licence to cultivate (“Licence”) in respect of its 160,000 sq. ft. automated greenhouse site in the Niagara region (the “Niagara Facility”). The Licence has a term of three-years and permits production at the Niagara Facility by Up Cannabis of:
Dried and fresh Marihuana;
Marihuana plants and seeds;
Cannabis in its natural form: Cannabis Resin; and,
Cannabis oil (bottled).
Cultivation is expected to begin at the Niagara Facility during the current month of April 2018 with the first harvest to take place in the third quarter of 2018. Production at the existing greenhouse is expected to reach the forecasted annual capacity of approximately 12,500 kg by the end of 2018.
“The receipt of this cultivation Licence marks the achievement of another critical milestone and showcases the ability of our production team to move from concept to cultivation effectively and quickly”, stated Jay Wilgar, Newstrike’s CEO. “In just over eight months, we acquired, financed, engineered, permitted, retrofitted and now licensed this fully-automated greenhouse facility and, in doing so, we expect to have aggregate annual production capacity of approximately 15,000 kg coming online for the opening of the Canadian adult-use cannabis market.”
The receipt of the Licence relates to the existing and recently retrofitted greenhouse operation in Ontario’s Niagara Region. As previously disclosed, Up Cannabis has received all land-use and related construction permits and expects to break-ground in the second half of 2018 to expand the Niagara Facility by adding an additional 160,000 sq. ft. of cultivation space as well as enhanced processing, packaging, shipping, storage and administrative facilities. On completion of this planned expansion to the Niagara Facility, Up Cannabis’ aggregate annual production capacity is expected to increase to approximately 27,500 kg.
Up Cannabis also received ISO 9001:2015 certification for its Quality Management System at its original Brantford facility (the “Primary Facility”). Up Cannabis intends to migrate the now-certified cannabis production, packaging and delivery systems developed and implemented at the Primary Facility to all of Up’s facilities as additional production capacity is built or acquired, beginning with the Niagara Facility.
Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Up Cannabis is in turn the parent company of Up Cannabis Niagara Inc. Newstrike, through Up Cannabis and together with select strategic partners, including Canada’s iconic musicians The Tragically Hip, is developing a diverse network of high quality cannabis brands.
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Newstrike to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to Newstrike’s expectations with respect to the production capacity of cannabis, expansion plans and approvals, legalization of adult-use cannabis and timing thereof. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a number of factors and risks. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date.
Newstrike does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracy of this release.