NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH UNITED STATES NEWSWIRE SERVICES
VICTORIA, British Columbia, July 13, 2017 (GLOBE NEWSWIRE) -- Evergreen Medicinal Supply Inc. (“Evergreen”) is pleased to announce that it has commenced cultivation of medical cannabis at its licensed facility, pursuant to its ACMPR (“Access to Cannabis for Medical Purposes Regulations”) license from Health Canada, granted on March 16th, 2017.
Evergreen’s founder and CEO Shawn Galbraith commented, “The beginning of actual medical cannabis cultivation at our facility, which features a diversified strain selection, is another significant milestone for Evergreen Medicinal Supply. It is the intent of Evergreen to imminently apply for additional permitted activities to our ACMPR license at the earliest available opportunity, including the selling of dried cannabis flower, and the cultivation and sale of cannabis oil, as permitted under the ACMPR.
Evergreen has recently entered into a wholesale sales agreement with another Licensed Producer under the ACMPR program. Pursuant to this agreement, Evergreen has agreed to sell on a wholesale basis up to 30 kilograms of bulk-dried cannabis a month. Galbraith commented, “The starting of cannabis cultivation in concert with entering into a wholesale sales contract with a high performing Licensed Producer accelerates Evergreen’s development and provides a clear path to predictable revenue." Together these activities fortify Evergreen as it begins to operate under its license, and plans for its significant facility expansion anticipated commencing in 2017.
Evergreen Medicinal Supply recently entered into an interim agreement with Cannabis Wheaton Income Corp (“CW”) (TSX VENTURE:CBW). Pursuant to this agreement, CW will invest the sum of $25,000,000.00 Canadian into Evergreen. The proceeds will be deployed to fund the construction of a 150,000 square foot purpose built cannabis cultivation facility providing an additional 75,000 square feet of growing area (building 2) to be operated by Evergreen. CW will receive shares in Evergreen equivalent to 6.6% of the Corporation’s current outstanding shares. CW will additionally receive a stream equal to the lesser of: i) 33% of the total cannabis production generated within Building 2, or ii) 5,000,000 grams of cannabis per year from Building 2. This stream will commence upon Evergreen providing CW with its first allocation under this agreement, and then continues for a fixed term of ten years. Galbraith commented, “The interim agreement entered into with Cannabis Wheaton has secured for Evergreen the capital necessary to begin construction of one of the largest purpose built indoor cannabis production facilities in the world. Building 2 will allow Evergreen to increase production to 30,000 kilograms of dried cannabis per year. We anticipate that Building 2 will be completed by the summer of 2018. This expansion provides Evergreen with the production footprint to meet the overwhelming demand anticipated for our products over the years to come."
ABOUT EVERGREEN MEDICINAL SUPPLY INC.
Born and bred in historic Victoria, British Columbia, Evergreen Medicinal Supply currently operates out of a 5,700 square foot licensed facility, located on a 2.9-acre parcel of agricultural land. In compliance with current local zoning, the site is permitted to house in excess of 150,000 square feet of production space. Evergreen embraces advanced growing techniques, and will incorporate many of the innovations that the industry has developed over the last several years. The company has a very clear mission to support the local community, and is owned and operated by citizens of Victoria.