AgraFlora Organics International Inc. (AGRA) (AGFAF) Introduces Initial Edibles SKUs for Production

• Rojo: a strawberry flavoured pectin based, cannabinoid-infused gummy SKU
• Naranja: a tangerine flavoured gelatine based, cannabinoid-infused gummy SKU
• Azul: a blue raspberry flavoured gelatine based, cannabinoid-infused gummy SKU
• Verde: a green apple flavoured pectin based cannabinoid-infused gummy SKU

Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora stated: “We are elated to announce the successful introduction and expected Health Canada product notification of our four cornerstone edibles SKUs, which harnesses the core competencies and competitive advantages associated with three generations of premium confectionary manufacturing experience.

We are of the opinion that AgraFlora’s initial cannabinoid-infused gummy SKUs will achieve the industry’s lowest COGS, resulting from a fully automated cooking, depositing and packaging production line, capable of producing 180,000 individually wrapped pieced per shift. All of our initial SKUs have been formulated, developed and packaged to meet the regulatory requirements, set out by Health Canada.

While our peers have initially focused on the submission of large numbers of wide ranging SKUs, we have instead elected to proceed with a more focused product development approach; leveraging the industry expertise refined over 100 years of profitable operations by our JV Partner, including supplying products to over 20,000 locations across North America, most prominently Costco and Wal-Mart.”

WINNIPEG EDIBLES FACILITY

The Company’s Winnipeg Edibles Facility, with 51,500 square feet, is equipped with over 30,000 square feet of dedicated edibles production space, as well as a 750 square-foot pharmaceutical-grade edibles research laboratory. Once activated, the Winnipeg Edibles Facility will be operated by a roster of third-generation chocolatiers/confectioners and boasts state-of-the-art manufacturing equipment capable of producing an assortment of both cannabinoid/terpene-infused products for medicinal, functional and adult use.

AgraFlora’s Winnipeg Edibles Facility is outfitted with fully automated production flow; therefore reducing associated labour costs and optimizing product throughput, as follows:

• Cooking Automation:
  • The Winnipeg Edible Facility’s confectionery line is powered by a custom, made to order cooking and mixing system. Recipes are programmed into the confectionery line’s operating system and are queued for production runs. Once the production run is initiated, pumping, and heating, mixing and cooking of formulations are executed in continuous automated process, requiring no human intervention.
• Depositing Automation:
  • A starchless confectionery mogul corrals the cooked cannabis infused confectionery and deposits the product into silicon molds; resulting deposit accuracy of greater than 99.5 per-cent. Flavours, colors and cannabis oil can be substituted during production runs, with no downtime required for changeovers.
  • The confectionery is then automatically cooled, demolded, sour sanded or oiled and then individually wrapped. From the moment ingredients are arrive at the plant to the time products emerge as finished cannabis infused edibles; no manual processes or human intervention is required.
• Packaging Automation:
  • The Winnipeg Edibles Facility is equipped with industrial high-speed packaging infrastructure that can wrap, bag and bottle cannabis edibles at speeds exceeding 15,000 packages per hour. Excise stamps are robotically applied to the packages and they are packed into finished cases leveraging automated pick and place systems.

The Company’s Winnipeg Edibles Facility is also equipped with the ability to formulate and mass-produce certain cannabinoid-infused fruit/vegetable purees, which conform to the more rigorous cannabis 2.0 regulations instilled by the Province of Quebec. This unique product development capability will permit the capture of defendable market share of the edibles, topicals and concentrates industry in Canada’s second most populous province.

CONTRACT MANFACTURING

AgraFlora continues to conduct advanced negotiations with its Tier 1 licensed producer peer group to develop and contract manufacture an array of cannabinoid edible confections. The Company is also proactively participating in provincial edibles product calls, as well as other mandated provincial edibles, topicals, and concentrates procurement activities. AgraFlora anticipates that the Winnipeg Edibles Facility will be fully operational by the first quarter of 2020.

EDIBLES EDUCATIONAL CAMPAIGN

AgraFlora also announces it is in the process of launching a national bilingual campaign dedicated to educating cannabis consumers regarding responsible consumption and secure storage of edibles products before they become available for sale in December.

Educational content will focus on identifying signs of overconsumption, understanding the differences in onset times and effects, along with cautions around mixing with alcohol and operating a motor vehicle while intoxicated. AgraFlora’s complete portfolio of cannabis 2.0 products, including but not limited to toffees, gummies and chocolates will include certified, lab-tested concentration of THC and CBD.

It is anticipated that AgraFlora’s edibles educational campaign will be launched across Canada and will be complemented on-line with digital and video assets, as well as radio and television advertisements.

THC OVERDOSE ANTIDOTE