Cannabis

MedReleaf Reports Fiscal Year 2017 Results

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MedReleaf Reports Fiscal Year 2017 Results

MedReleaf Reports Fiscal Year 2017 Results

Fiscal 2017 Adjusted EBITDA of $14 million on $40 million in sales; phase 1 Bradford Facility expansion complete and in production

MARKHAM, ON, June 28, 2017 /CNW/ – MedReleaf Corp. (TSX: LEAF) (“MedReleaf” or the “Company”), Canada’s first and only ISO 9001 and ICH-GMP certified cannabis producer, today announced financial and operating results for the fourth quarter and fiscal year ended March 31, 2017. All amounts expressed are in Canadian dollars unless otherwise noted.

“We doubled revenue in fiscal 2017 and we did it profitably – growing Adjusted EBITDA more than threefold,” said Neil Closner, CEO of MedReleaf. “With the successful completion of our IPO in June we have $74 million in financing to help fund our strategic growth initiatives including: expanding our capacity more than five times to support up to 35,000 kilograms of production; scaling our domestic business; developing our recreational brand portfolio; and international expansion, which we believe positions MedReleaf well for future growth and profitability.”

Fourth Quarter and Fiscal Year 2017 Financial Summary

Three Months

Twelve Months

March 31,

March 31,

CAD$ (in 000s, except grams sold)

2017

2016

2017

2016

Sales

10,360

6,862

40,339

19,302

Gross Profit

10,316

4,474

37,939

12,517

Adjusted Product Contribution Margin*

7,398

4,442

30,903

11,928

Adjusted EBITDA*

1,622

1,954

13,851

4,622

Grams sold*

1,167,325

593,400

3,668,104

1,688,800

Adjusted product contribution per gram sold*

$6.34

$7.49

$8.42

$7.06

Cash cost per gram produced*

$1.53

$3.11

$1.73

$3.23

*Non-IFRS Measures

Through fiscal 2017, MedReleaf successfully increased production capacity, reduced cash production costs, and launched new cannabis oil products at its production facility in Markham, Ontario (“Markham Facility”), resulting in the following highlights:

Fiscal Year 2017 Highlights

  • Sales of $40.3 million, an increase of 109% from the prior year
  • Adjusted Product Contribution Margin of $30.9 million, an increase of 159% from the prior year
  • Adjusted EBITDA of $13.9 million, an increase of 200% from the prior year
  • Sold 3,668.1 kilograms of cannabis products, an increase of 117% from the prior year
  • Adjusted product contribution margin per gram sold of $8.42 compared to $7.06 in the prior year
  • Cash cost per gram produced of $1.73 compared to $3.23 in the prior year
  • In July 2016, completed the purchase of a 210,596 square foot production facility in Bradford, Ontario (“Bradford Facility”)
  • In November 2016, obtained a Health Canada Licence for the production and sale of cannabis extracted oils, and became the first Canadian Licensed Producer to bring cannabis capsules to market

Fiscal 2017 Fourth Quarter Highlights

  • Sales of $10.4 million, an increase of 51% year-over-year
  • Adjusted Product Contribution Margin of $7.4 million, an increase of 67% year-over-year
  • Adjusted EBITDA of $1.6 million, a decline of 17% year-over-year, as a result of increased investment in long-term growth initiatives and $0.6 million in one-time costs
  • Sold 1,167.3 kilograms of cannabis products, an increase of 97% year-over-year
  • Adjusted product contribution margin per gram sold of $6.34 compared to $7.49 in the prior year period
  • Cash cost per gram produced of $1.53 compared to $3.11 in the prior year period

Subsequent to the fiscal 2017 year end, MedReleaf completed the first phase of its Bradford Facility construction project, which included drying, trimming, packaging, shipping, storage and grow rooms with an estimated annual production capacity of 2,800 kilograms of cannabis products. In April 2017, MedReleaf received a cultivation licence from Health Canada pursuant to the Access to Cannabis for Medical Purposes Regulations in respect of the Company’s Bradford Facility and the Company has commenced production at such facility.

MedReleaf also became the first medical cannabis producer to receive an International Council on Harmonization certification for Good Manufacturing Practices (“ICH-GMP”) for Active Pharmaceutical Ingredients. The ICH-GMP certification is a significant milestone supporting the Company’s international expansion strategy and R&D initiatives to help the pharmaceutical industry more fully explore the benefits of medical cannabis through clinical trials.

On June 7, 2017, MedReleaf closed its initial public offering and secondary offering for aggregate gross proceeds of $100.7 million and the Company’s common shares commenced trading on the Toronto Stock Exchange under the symbol “LEAF”.

Financial Review

Sales

Sales were $10.4 million for the fourth quarter of fiscal 2017, an increase of 51% from $6.9 million in the prior year period.

On November 22, 2016, Veteran’s Affairs Canada (“VAC”) announced a new Reimbursement Policy for Cannabis for Medical Purposes (the “VAC Policy”). The key points of the policy include a maximum reimbursement rate of $8.50 per gram of dried marijuana or the equivalent amount of fresh marijuana or cannabis oil, and coverage limitations to an amount of three grams per day, subject to a process that potentially allows for the daily limit to be exceeded by individual Veteran patients by way of an exemption request to be submitted to VAC by a medical specialist. The reimbursement limitations became effective immediately and the coverage limitations became effective May 21, 2017.

In response to the pricing changes introduced by the VAC Policy, the Company began to offer price discounts to qualifying Veterans to assist with the non-reimbursable portion of their medication. This resulted in a reduction in average selling price for the fourth quarter of fiscal 2017. Following the VAC Policy change the Company has continued to see strong patient growth in both veterans and non-veterans, as demand for premium cannabis products has sustained average price above the $8.50 VAC Policy cap.

During the fourth quarter of fiscal 2017, a total of 1,167.3 kilograms of cannabis products were sold at an average selling price of $8.87 per gram. This represents an increase of 573.9 kilograms sold, or 97% from the prior year period at an average selling price of $11.56 per gram. On a sequential basis, volume sold increased by 174.1 grams, or 18% from the third quarter fiscal 2017 at an average selling price of $10.50 per gram.

For the year ended March 31, 2017 and 2016, sales were $40.3 million and $19.3 million, respectively. This resulted in a $21.0 million, or 109%, increase in sales when compared to the prior year.

During the year ended March 31, 2017, 3,668.1 total kilograms of cannabis products were sold at an average selling price of $11.00 per gram (2016 – 1,688.8 kilograms at an average selling price of $11.43 per gram). This represents an increase of 1,979.3 kilograms or 117% compared to the prior year.

Sales and volume growth for the year was primarily the result of increased production capacity, patient demand, yield improvements, and the introduction of cannabis oil extracts for sale.

Cash Cost Per Gram Sold (Non-IFRS Measure)

The following are the Company’s cash production costs, on a total and per gram sold basis, for the three and twelve months ended March 31, 2017 and 2016, as compared to reported production costs (excluding costs resulting from the fair value of biological assets), which represents cost of sales, in accordance with IFRS:

Three Months

Twelve Months

March 31,

March 31,

CAD$ (in 000s, except grams sold)

2017

2016

2017

2016

Production costs

2,962

2,420

9,436

7,374

Amortization included in production cost

(426)

(162)

(1,197)

(590)

Recovery of production costs

Post production costs

(751)

(413)

(1,896)

(1,335)

Cash production costs

1,785

1,845

6,343

5,449

Equivalent grams sold

1,167,325

593,400

3,668,104

1,688,800

Cash cost per gram sold

$1.53

$3.11

$1.73

$3.23

Through the course of fiscal 2017, increased production volumes and higher yields resulting in improved efficiencies in labour utilization and allocation of fixed costs have allowed MedReleaf to produce premium, indoor-grown medical cannabis on a comparable cash cost per gram basis to greenhouse peers.

The cash cost per gram sold for the fourth quarter of fiscal 2017 was $1.53, compared to cash cost per gram sold of $3.11 in the prior year period. Cash cost per gram sold for the fourth quarter of fiscal 2017 decreased $1.58 or 51% compared to the prior year period.

The cash cost per gram sold for the years ended March 31, 2017 and 2016 was $1.73 and $3.23, respectively. Cash cost per gram sold for the year ended March 31, 2017 decreased $1.50 or 46% compared to the year ended March 31, 2016.

Adjusted Product Contribution Margin (Non-IFRS Measure)

The following is the Company’s Adjusted Product Contribution Margin as compared to the reported gross profit, which includes the gain on changes in fair value of biological assets in accordance with IFRS, for the three and twelve months ended March 31, 2017 and 2016.

Three Months

Twelve Months

March 31,

March 31,

CAD$ (in 000s, except grams sold)

2017

2016

2017

2016

Gross profit

10,316

4,474

37,939

12,517

Cost of finished harvest inventory sold

7,652

3,960

24,216

9,803

Gain on fair value changes in biological assets

(10,570)

(3,992)

(31,252)

(10,392)

Net gain on fair value measurement of biological assets

(2,918)

(32)

(7,036)

(589)

Adjusted Product Contribution Margin

7,398

4,442

30,903

11,928

Grams sold

1,167,325

593,400

3,668,104

1,688,800

Adjusted product contribution margin, per gram sold

$6.34

$7.49

$8.42

$7.06

Adjusted Product Contribution Margin for the fourth quarter of fiscal 2017 was $7.4 million or $6.34 per gram sold, compared to $4.4 million or $7.49 per gram sold for the prior year period.

Adjusted Product Contribution Margin for the year ended March 31, 2017 was $30.9 million or $8.42 per gram sold, compared to $11.9 million or $7.06 per gram sold the year ended March 31, 2016.

The increase in Adjusted Product Contribution Margin for the quarter and the year was as a result of growth in production capacity and sales throughout the year.

The decline in Adjusted Contribution Margin per gram sold for the fourth quarter of fiscal 2017 compared to the prior year period is a result of the impact of the VAC Policy resulting in lower average selling price per gram, partially offset by lower production costs as reflected in a reduction in the cash cost per gram sold.

Improvements in Adjusted Product Contribution Margin per gram sold for the year are primarily attributable to sales volume increases that allow for better utilization of, and the spread of cost allocations attributable to, labour production and overhead costs.

Adjusted EBITDA (Non-IFRS Measure)

Three Months

Twelve Months

March 31,

March 31,

CAD$ (in 000s)

2017

2016

2017

2016

Income (loss) before income taxes

2,891

1,408

15,642

3,371

Adjustments:

Amortization

588

243

1,692

870

Stock based compensation

604

324

3,053

903

Interest income

(56)

(19)

(75)

(51)

Finance costs

59

30

121

118

Initial public offering related fees

454

454

Net impact, fair value of

Biological assets

(2,918)

(32)

(7,036)

(589)

Adjusted EBITDA

1,622

1,954

13,851

4,622

Adjusted EBITDA for the fourth quarter of fiscal 2017 was $1.6 million, a decrease of $0.3 million or 17% from $2.0 million for the prior year period.

The decrease in Adjusted EBITDA in the fourth quarter of fiscal 2017 compared to the prior year period was driven by higher Adjusted Contribution Margin, offset by increased operating expense as the Company invests in long-term growth initiatives, specifically hiring for domestic expansion, creating the recreational brand portfolio, and developing international opportunities.

For the fourth quarter of fiscal 2017, bad debt associated with VAC receivables, accounting adjustments within the Tikun Olam agreement, and severance totaled $0.6 million. While MedReleaf believes these expenses were extraneous and isolated within the quarter, the Company did not alter for them in the Adjusted EBITDA calculation.

Adjusted EBITDA for the year ended March 31, 2017 was $13.9 million, an increase of 200% from $4.6 million for the year ended March 31, 2016. Adjusted EBITDA increased for the year as a result of operational growth in production capacity, patient demand, and sales.

Balance Sheet and Use of Proceeds from Offering

At the end of March 31, 2017, the Company had cash and cash equivalents of $12.9 million and working capital of $24.7 million.

On June 7, 2017, the Company closed its initial public offering and secondary offering for aggregate gross proceeds of $100.7 million, with MedReleaf receiving gross proceeds of approximately $80.7 million and the selling shareholders receiving proceeds of approximately $20.0 million. After the deduction of associated fees and expenses, the Company received net proceeds of approximately $74.0 million in connection with the initial public offering.

Approximately $55.0 million of the funds received by the Company in connection with the initial public offering are expected to be allocated to manufacturing capacity expansions at the Markham and Bradford Facilities, as the Company is now fully funded to increase production capacity to up to 35,000 kilograms annually. Approximately $2.0 million in proceeds are expected to be used for clinical research and product development and the remaining $17.0 million in proceeds are expected to be used for working capital and general corporate purposes.

Fourth Quarter and Fiscal Year 2017 Conference Call & Webcast

A conference call and webcast to discuss MedReleaf’s fourth quarter and fiscal year 2017 results will be held on Wednesday, June 28, 2017 at 8:00 a.m. (ET). The call will be hosted by Neil Closner, Chief Executive Officer, and Igor Gimelshtein, Chief Financial Officer, followed by a question and answer period.

To participate, interested parties are asked to dial (647) 427-7450 or (888) 231-8191 prior to the scheduled start of the call. A replay of the conference call will be available by dialing (855) 859-2056 and using the reference number 41045544. The replay of this call will be available until July 5, 2017.

The Conference Call will also be webcast live at
http://bit.ly/2rl9jgz

Financial Statements and Management’s Discussion and Analysis

This news release, along with the audited consolidated annual financial statements and the Company’s corresponding management’s discussion and analysis, are available on the Company’s website at www.medreleaf.com and on SEDAR at www.sedar.com.

Non-IFRS Measures

This news release refers to certain non-IFRS financial measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing additional information regarding the Company’s results of operations from management’s perspective. Accordingly, non-IFRS measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. All non-IFRS measures presented in this news release are reconciled to their closest reported IFRS measure.

(a) Adjusted Product Contribution Margin

Management makes use of an “Adjusted Product Contribution Margin” measure to provide a better representation of performance in the period by excluding non-cash fair value measurements as required by IFRS. The Adjusted Product Contribution Margin used by management is a non-IFRS financial measure that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management believes this measure provides useful information as it represents the gross margin for management purposes based on the Company’s complete cost to produce inventory sold, exclusive of any fair value measurements as required by IFRS. The metric is calculated by removing all amounts related to biological asset fair value accounting under IFRS including gains on transformation of biological assets and the cost of finished harvest inventory sold, which represents the fair value measured portion of inventory cost (“fair value cost adjustment”) recognized as cost of goods sold.

(b) Equivalent grams and kilograms

Equivalent gram or kilogram refers to the equivalent number of dried grams or kilograms of cannabis required to produce extracted cannabis in the form of cannabis oil. The Company estimates and converts its cannabis oil inventory to equivalent grams using the combined Tetrahydrocannabinol (“THC”) and Cannabidiol (“CBD”) content in extracted cannabis products. Any reference to grams in this news release includes the combined dried cannabis and equivalent grams of extracted cannabis.

(c) Cash Cost Per Gram Sold

The cash cost per gram sold is used by management to measure the estimated amount of direct production costs, on a per gram sold basis, that are required to produce dried cannabis and cannabis oil. Management uses this measure to track production cost trends and assess the sensitivity and tolerance for pricing changes. Management believes this measure provides useful information by removing non-cash and post production costs and provides a benchmark of the Company against its competitors. This is not a defined term under IFRS. The metric is calculated by: removing from production costs incurred during the period, all non-cash based costs (including amortization and inventory write-downs or impairments) and all post production costs; and dividing such amount by the approximate number of grams of cannabis sold during the period. Post production costs include indirect overhead expenses such as: equipment rentals, payment processing fees, indirect labour expenses, shipping expenses, quality control expenses, and other order fulfillment costs included in production costs.

(d) Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”)

Adjusted EBITDA is used by management as a supplemental measure to review and assess operating performance and trends on a comparable basis. The Company defines Adjusted EBITDA as EBITDA adjusted for the impact of any unrealized expenses or gains, stock based compensation, fair value gains or costs arising from biological assets, expenses related to readying the Company for its initial public offering and other non-recurring costs the Company deems unrelated to current operations.

Adjusted EBITDA does not have a standardized meaning under IFRS and is not a measure of operating income, operating performance or liquidity presented in accordance with IFRS and is subject to important limitations. The Company’s definition of Adjusted EBITDA may not be the same as similarly titled measures used by other companies. The Company believes that Adjusted EBITDA provides a useful tool for assessing the comparability between periods of its ability to generate cash from operations. Adjusted EBITDA is presented in order to provide supplemental information to the Financial Statements included elsewhere in this prospectus, and such information is not meant to replace or supersede IFRS measures.

Cautionary Statement Regarding Forward-Looking Information

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are statements other than statements of historical fact and which can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would”, “could” or “will” happen, or by discussions of strategy. Statements in this news release containing forward-looking information are based upon the expectations, estimates, projections, assumptions and views of future events of management at the date hereof and that management believes to be reasonable in the circumstances, including those relating to: general economic conditions, the expected timing and cost of expanding the Company’s production capacity, the expected timing of cannabis legalization in Canada, future growth of the Company’s business and international opportunities, the development of new products and product formats, the Company’s ability to retain key personnel, the Company’s ability to continue investing in its infrastructure to support growth, the impact of competition, trends in the Canadian medical cannabis industry and changes in laws, rules and regulations. Statements containing forward-looking information should not be read as guarantees of future events, performance or results, and will not necessarily be accurate indications as to whether, or the times at which, such events, performance or results will occur or be achieved. The forward-looking information contained in this news release is subject to known and unknown risks and uncertainties, including but not limited to those risks and uncertainties described under the heading “Risk Factors” in the Company’s annual information form dated June 27, 2017 (which will be available on the Company’s SEDAR profile at www.sedar.com), any of which could cause actual results to differ materially from those expressed or implied by the forward-looking information disclosed herein. Accordingly, readers are cautioned not to place undue reliance on such forward-looking information. Statements in this news release containing forward-looking information speak only as of the date on which they are made and MedReleaf does not undertake any obligation to update or revise any forward‑looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

About MedReleaf Corp.

MedReleaf sets The Medical Grade Standard™ for cannabis in Canada and around the world. The first and only ICH-GMP and ISO 9001 certified cannabis producer in North America, MedReleaf is a R&D-driven company dedicated to patient care, scientific innovation, research and advancing the understanding of the therapeutic benefits of cannabis. Sourced from around the world and perfected in one of two state of the art facilities in Ontario, MedReleaf delivers a variety of premium products to patients seeking safe, consistent and effective medical cannabis.

For more information on MedReleaf, its products, research and how the Company is helping patients #livefree, please visit MedReleaf.com or follow @medreleafcanada.

SOURCE MedReleaf Corp.

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Published at Wed, 28 Jun 2017 12:45:44 +0000

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Expert Joints LIVE!: Happy Birthday Jenny

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Expert Joints LIVE!: Happy Birthday Jenny

Expert Joints LIVE!: Happy Birthday Jenny

Happy Birthday Jenny! This week Craig and Jen welcome the folks from the National Joint League via Skype, and welcome back Cody Van Gogh. The teams from Miss Envy Botanicals and the Cannabis Life Conference will also stop by; plus products from Vancouver Pain Management Society & Everlasting Extracts too. It’s also Jen’s birthday episode… so toke up, tune in, and watch us eat cake!

Original air date – June 29th, 2017

For more on our guests, please visit:
https://www.doapsoaps.com
https://www.instagram.com/national_jo…
https://www.instagram.com/roll_with_c…
https://www.missenvy.ca
https://cannabislifeconference.com
https://www.instagram.com/ev3rlastingx
https://www.facebook.com/The-Vancouve…

Find EXPERT JOINTS & Loudonio online at:
http://EXPERTJOINTS.com
https://twitter.com/EXPERTJOINTS
https://instagram.com/EXPERTJOINTS
https://youtube.com/EXPERTJOINTS
https://facebook.com/EXPERTJOINTS
https://twitter.com/Loudonio
https://www.instagram.com/loudonio


Expert Joints LIVE!: That’s Doap

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Expert Joints LIVE!: That’s Doap

Expert Joints LIVE!: That’s Doap

Original air date – June 29th, 2017

For more on our guests, please visit:
https://www.doapsoaps.com
https://www.instagram.com/national_jo…
https://www.instagram.com/roll_with_c…
https://www.missenvy.ca
https://cannabislifeconference.com
https://www.instagram.com/ev3rlastingx
https://www.facebook.com/The-Vancouve…

Find EXPERT JOINTS & Loudonio online at:
http://EXPERTJOINTS.com
https://twitter.com/EXPERTJOINTS
https://instagram.com/EXPERTJOINTS
https://youtube.com/EXPERTJOINTS
https://facebook.com/EXPERTJOINTS
https://twitter.com/Loudonio
https://www.instagram.com/loudonio

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Published at Mon, 26 Jun 2017 01:49:48 +0000

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Canopy Growth Update

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Canopy Growth Update

Canopy Growth Update

SMITHS FALLS, ON, June 24, 2017 /CNW/ – Earlier this week, Canopy Growth Corporation (TSX: WEED) (“Canopy Growth” or the “Company”) provided a global operational update to keep shareholders and other stakeholders apprised of operational developments as they relate to international milestones and innovative new product types. With a rapidly growing medical market in Canada, increasing international demand profiles and the fast-approaching move towards an adult-use access market in Canada, a reliable, diversified and exponentially larger footprint will be essential.

With a track record of building and operating the largest sites in Canada and already overseeing the largest diversified network of sites, including over 500,000 square feet of GMP-certified indoor and greenhouse facilities, Canopy Growth is pleased to announce the first in a series of capacity announcements and expansion plans.

THE HIGHLIGHTS (FROM WEST TO EAST):

  • Agreement with Goldman Holdings, Ltd. (“Goldman Group”) pursuant to previously announced MOU to begin build-out and licensing process for a 160,000 square foot indoor facility in Edmonton, Alberta.
  • Cultivation license obtained at the Yorkton, Saskatchewan-based Tweed Grasslands (rTrees Producers Limited or “rTrees”) facility.
  • Retrofit and expansion at the Mettrum Bowmanville, Ontario facility now completed and licensed, adding 200% more production capacity at that facility.
  • The previously announced supply agreement and sale of Mettrum (Bennett North) Ltd. (“Bennett North”) to Cannabis Care Canada, backed by LiUNA, North America’s single largest construction union with over 100,000 Canadian members, is progressing with closing anticipated shortly.
  • Expansion at our flagship 1 Hershey Drive Campus in Smiths Falls continues with licensing of 33% more flowering space, licensed and launched production of industrial scale CO2 super-critical extraction, and construction is underway in the remaining 300,000 square foot North Campus area.
  • Entered into an agreement to acquire a 100,000 sq. ft. facility in Fredericton, New Brunswick with the intention of launching a Tweed facility for indoor production in New Brunswick.

Our ongoing mission is to build the brands and products that people want, and to support those brands with the necessary capacity footprint to satisfy all the customers who trust our family of companies for their cannabis. Canopy Growth is committed to prioritizing patient access over recreational sales but that doesn’t change its plans to pursue recreational markets in Canada or any other federally legal jurisdiction.

Through its subsidiaries, Canopy Growth has overseen hundreds of harvests across multiple facilities. Management believes it has an unparalleled ability to forecast production capacity in the industry. As we release more information on our expansion plans, we will begin to paint the picture of how our footprint will position us for future global demand.

ADDITIONAL DETAILS
Smiths Falls Campus – Main Building: The 40 acre Smiths Falls Campus at 1 Hershey Drive is the Company’s largest indoor location and will continue to act as the strategic hub for innovation, consumer shipping, and multi-format value-add conversion activities. But we still do a lot of growing there and are pleased to announce the recent licensing of 33% more flowering space.

Additionally, to support increased demand across all oil-based products, a custom-built industrial extraction system is now commissioned and operational in the Smiths Falls facility. The new system is capable of producing as much oil in approximately 1 month as the Company has produced since extraction activities commenced in November 2015. This is a major step forward and will lead to increased product availability across multiple brands in the short term once fully ramped up.

Smiths Falls Campus – North Campus: Another 300,000 square feet of production space is currently in the early stages of demolition and construction at the North Campus area of our site. The future space, subject to Health Canada approval, is expected to support additional growing and vault capacity, production of value add products for the evolving adult access market, when permitted, office administration space and a return of the famous Visitor Centre at the Smiths Falls Hershey Drive campus.

Tweed Grasslands: Canopy Growth is pleased to announce that Tweed Grasslands (rTrees) in Yorkton-Saskatchewan has become its sixth licensed production site, having received its cultivation license. Production will begin next month to support increased demand from medical patients around the world. The Grasslands facility will be fully operational by early summer 2018.

New Edmonton Facility Planned: Canopy Growth has leveraged a previously announced MOU with Goldman Group to expand its footprint into Edmonton, Alberta with a 160,000 square foot facility that, per the terms of the MOU, will be leased to Canopy Growth by Goldman Group with an option to purchase the facility at the end of each 5-year quarter of the 20-year lease. The transaction is expected to close August 1, with the existing tenants vacating October 1, 2017. As always, licensing is contingent upon Health Canada and municipal approvals.

Main Bowmanville Facility: The Mettrum Bowmanville facility has received approval for additional flowering rooms, a 200% increase over current production capabilities. These rooms are coming online in tandem with the completion of retrofit work on the existing rooms following the acquisition of Mettrum by Canopy Growth.

Fredericton, New Brunswick: Canopy Growth has entered into an agreement to acquire a 100,000 sq. ft. facility in Fredericton, New Brunswick with the intention of launching a Tweed facility for indoor production in New Brunswick.

Vert Cannabis Drummondville Site: The Vert Cannabis application in St. Lucien, Quebec continues to advance through the Health Canada application process and is ready for inspection.

Mettrum (Bennett North): Per the previously announced transaction with Cannabis Care Canada Inc. (“CCC”) outlining the sale of Mettrum (Bennett North) to CCC, the transaction is progressing and is expected to close shortly. The announcement was originally made prior to Canopy Growth acquiring Mettrum Health Corp. and has proceeded as planned following that acquisition.

CCC is financially backed by Laborers International Union of North America (“LiUNA”), North America’s single largest construction union with over 100,000 Canadian members. Under the terms of the agreement, CCC will pay $7 million in cash to acquire Bennett North and enter into a three-year Supply Agreement with CGC. As part of the transaction, CCC will assume all outstanding obligations associated with Bennett North.

Canopy Growth subsidiaries, working in conjunction with CCC, will begin working directly with LiUNA local chapters in the near future to support members’ needs.

Scarborough Sites: Canopy Growth continues to explore partnership opportunities for the original Bedrocan Canada distribution-only licensed site, and production continues at the main Scarborough location.

Here’s to (a lot of) Future Growth (across Canada).

ABOUT CANOPY GROWTH CORPORATION
Canopy Growth is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. Through its wholly‑owned subsidiaries, Canopy Growth operates numerous state-of-the-art production facilities with over half a million square feet of GMP-certified indoor and greenhouse production capacity, all to an unparalleled level of quality assurance procedures and testing. Canopy Growth has established partnerships with leading sector names in Canada and abroad, with interests and operations spanning four continents. The Company is proudly dedicated to educating healthcare practitioners, providing consistent access to high quality cannabis products, conducting robust clinical research, and furthering the public’s understanding of cannabis. For more information visit www.canopygrowth.com.

NOTICE REGARDING FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements. 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. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canopy Growth Corporation, Tweed Inc., Tweed Farms Inc., Mettrum Health Corp., or Bedrocan Canada Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include future operational and production capacity, the impact of enhanced infrastructure and production capabilities, and forecasted available product selection. The forward-looking statements included in this news release are made as of the date of this news release and Canopy Growth Corp. does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Canopy Growth Corporation

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Published at Sat, 24 Jun 2017 17:20:18 +0000

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Expert Joints LIVE!: “Saltwater Sesh”

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Expert Joints LIVE!: “Saltwater Sesh”

Expert Joints LIVE!: “Saltwater Sesh”

A “Saltwater Sesh” with The Saltwater Cowboy, Tim McBride who is scheduled to join Craig in Vancouver!

This week Craig and Jen chat with Chris of Black Octopus Glass, and sample more products from Liberty Farms. Creative Roller Cody Van Gogh of the National Joint League is also back; as is Chronic Cooking and Puff Puff Pass It Along. Episode 98 also features a special edition of Tim’s Tales with the ‘Saltwater Cowboy’ Tim McBride who will be IN THE POT TV STUDIO!!! This is an episode you do not want to miss. Expect a few surprise guests, a ton of weed and a helluva good time!

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Published at Sun, 18 Jun 2017 22:45:42 +0000

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Jack Herer: You know the strain, now get to know the man

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Jack Herer: You know the strain, now get to know the man

Jack Herer: You know the strain, now get to know the man

Who was Jack Herer? One of the most celebrated figures in the history of marijuana legalization was not a simple man.

Herer, who died in 2010, would have celebrated his 78th birthday tomorrow. Even before his passing, he became a larger-than-life figure whose had a popular strain of cannabis and a prestigious cannabis cultivator/product competition named in his honor.

A former military policeman who didn’t smoke marijuana until he was 30, then a relentless rabble-rouser for cannabis. A Buffalo, New York, native and a West Coast counterculture icon. Married four times and father of six. Author and fearless champion of marijuana legalization. The Hemperor, the Godfather of the Hemp Revolution, the Johnny Appleseed of Weed.

Jack Herer was all that and more.


“The Emperor Wears No Clothes,” by Jack Herer.

His landmark non-fiction work, “The Emperor Wears No Clothes,” was ground-breaking when it was first published in 1985. The product of years of research, Jack began laying out the book in early 1981 during a brief prison stay for registering voters on federal property after dark. (He was camped out in front of the federal building in L.A., where he and other demonstrators were protesting marijuana laws.) It has provided ammunition for generations of pot advocates and enthusiasts, outlining the history of cannabis, showing its many uses and explaining how it ended up as an illegal substance in the United States.

Keith Stroup, the public-interest attorney who founded the National Organization for the Reform of Marijuana Laws (NORML) nearly 50 years ago, first met Herer at cannabis legalization protests and events in the mid-70s. He vividly recalled Herer’s no-concession approach to legalization.

“Occasionally he would come across as a bit abrasive or aggressive because he was upset with NORML, because we had made some compromises and gotten a law passed in some state,” Stroup told The Cannabist. “And Jack inevitably felt it would have been better if we had not passed a law, and held out until we got what he considered a perfect law.”

What really made Herer stand out and attracted people to his message was his unabashed love of marijuana at a time when it was considered a societal evil, Stroup said.

“You couldn’t see (Herer) without recognizing immediately that he was a marijuana aficionado.” Stroup said. “He wore it on his sleeve. So I think a lot of his impact was that he showed the courage to be out front long before it was acceptable to be out front.”

Jack Herer Venice Beach
Jack Herer manned his cannabis awareness booth in Venice Beach for more than 20 years. (Courtesy Dan Herer)

Sometimes at events and protests he would “have more marijuana on him personally than most of us would feel comfortable having in our apartment,” Stroup said. “He would be smoking joints regardless of where he was, handing out joints; he was truly a Johnny Appleseed who appeared to have very little fear of legal repercussions. And that was a helpful trait; it encouraged the movement to come out of the closet.”

For Herer’s children, their dad’s legacy can be bittersweet.

“I think most people in the pot movement kind of know about the (Jack Herer strain of cannabis) but don’t know anything about his legacy,” said Mark Herer, a Portland-based cannabis grower who also ran his father’s famous The Third Eye head shop until its recent closure after 30 years in business. “Of the people who know his book, (few) have read it. It’s disappointing but understandable.”

The Jack Herer strain is just a small part of his dad’s impact on the cannabis legalization movement, Mark said. The people who knew him probably remember Jack Herer as “a crotchety son of a bitch that wouldn’t waver from his goal. And his goal was complete freedom (for cannabis use).”

Jack with Captain Ed Adair, 1990
Jack Herer with Captain Ed Adair, 1990 (Courtesy Dan Herer)

One of the most “radical” things about his father was his willingness to talk publicly about the merits and benefits of cannabis, Mark said, recalling months and months spent touring the country with his father and cohort “Captain” Ed Adair.

“In the fall of ’90 we did this 72-show tour around the East Coast and the Midwest–clocked 15,000 miles,” Mark, now 52, remembered. “We had Captain Ed’s 28-foot motor home, a trailer with all of our gear.”

The caravan stopped in college towns, hit as many festivals as possible and even knocked on doors of private homes to spread the word about marijuana and hemp legalization, he said.

Mark’s brother, Dan Herer, has taken on the mantle of his father’s cannabis activism as director of the Jack Herer Foundation, a hemp educational organization. His father was a “very driven individual” who realized there was a “great void of information and awareness” in society’s understanding of cannabis.

Dan, now 54, has fond memories of taking part in his father’s early 1980s demonstrations at the L.A. federal building.

“As a father-son activity it was an interesting experience,” he told The Cannabist. “Sleeping on the lawn, camped out listening to live rock and roll bands, smoking cannabis on the federal building lawn.”

Jack Herer and Dennis Peron, California medical marijuana legalization
Jack Herer, left, hangs out with Dennis Peron, leader of the campaign for Proposition 215, which made California the first in the nation to legalize medical marijuana, on Nov. 6, 1996 at Peron’s Cannabis Buyers Club dispensary in San Francisco. (Andy Kuno, The Associated Press)

His father’s posthumous celebrity can be a double-edged sword, Dan said.

“People will say to me ‘I love the (Jack Herer) strain’ but they have no understanding of the man. That cuts deeply,” he said. “When people found out what he stood for, they were able to find their voice (in the legalization movement). But without understanding that, then you don’t know the real story. You don’t know Jack.”

Stroup echoed that sentiment. Today’s audience probably finds it difficult to understand a social and legal environment where smoking marijuana was really considered as dangerous as violent crime, he said.

Back in the 1970s, “getting busted for marijuana was not just an inconvenience that might cause you to lose your job. You were often confronted with the possibility of serving several years in prison–even for a couple of joints,” he said.

Herer was a “phenomenon” and cultural force, Stroup said. He wasn’t a perfect messenger, but he certainly was a courageous messenger.

“I think that myths frequently play a helpful role in social change,” he said. “They allow us to create heroes that help show us the way forward. And the myth of Jack Herer has played that role in the legalization movement.”

Dan Herer said his father was a visionary, who understood the potential of cannabis decades before new technologies allowed the plant’s many applications to be unlocked and exploited.

“When I drive down the street and see a dispensary, or I go to conventions that extol the virtues of this plant in such a wide variety of ways and applications; or when I see the ingenious ways that people are using (cannabis), I see my father every day.”

Family portrait: Jack Herer’s wife Vera, with son Mark in her arms. Dan in center and brother Barry to the right of Jack.(Courtesy Dan Herer)

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Published at Sat, 17 Jun 2017 12:00:03 +0000

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