Stillcanna Operational Update
Stillcanna is pleased to present its B2B web portal to support its bulk sales initiatives. The Company obtained a comprehensive Certificate of Analysis (“COA“) of its CBD Isolate. The COA indicates that the product is pure CBD, has non-detectable levels of THC, and is free of any heavy metals and pesticides (“CBD Isolate“). The COA is available on the Company’s B2B portal. The portal also makes available a certificate of Good Farming Practices, EU registered hemp varietals used, a Material Safety Data Sheet and verification of EU GMP compliant construction and anticipated filing for certification. Stillcanna anticipates adding additional certifications to the portal as they become available including Halal, Kosher, Non-GMO, Gluten-free, Organic and others. http://www.stillcannacbd.com.
Since beginning production over the past few weeks, the Company is pleased to announce it has begun shipping CBD Isolate to Bioscience Enterprises Inc. as outlined in the supply agreement dated May 28, 2019. Bioscience has operations in California, the United Kingdom and Ireland. The CBD Isolate shipment was successfully delivered from the Company’s Polish based NEXUS extraction facility to Biosciences’ United Kingdom office. The Company anticipates ongoing monthly shipments to Biosciences offices globally.
The Company is pleased to announce that it has received and has begun fulfilling an order from HempLabs Poland. Hemplabs specializes in producing and selling various CBD-based products throughout Europe under the brand Cannabium, from its e-commerce site at https://cannabium.pl. Stillcanna anticipates fulfilling the HempLabs order by the end of the month.
The Company is pleased to announce it has begun shipping hemp biomass to Sequoya Cannabis in Poland as outlined in the supply agreement dated August 23, 2019. Sequoya has been successfully testing their CO2 extraction equipment, Stillcanna anticipates shipping hemp to Sequoya on an ongoing monthly basis.
Since producing its first pure CBD Isolate at its NEXUS facility last month, the Company has received over C$1,140,000 in confirmed purchase orders. The Company’s production staff in Poland has grown to 20 employees, working 12-hour shifts on a two-day rotation during a seven day work week. The company has every intention of delivering all orders in a timely manner in the weeks ahead.
While transitioning into sales, the Company has established a network of sales agents globally who work in the Cannabis space, referred to as the broker network. The Company is finalizing the required tool set for the network, including commissions, pricing, product documentation and sales protocols. The sales channel is made up of a combination of individuals and corporations that have established customers in the space. The sales cycle generally involves a potential customer first requesting the third party COA, followed by a sample of the Company’s product for their own testing, followed by pricing, terms and purchase order. Depending on the customer’s size and product requirements, the sales cycles can range from 30 days to 90 days on average, and in the case of large corporations 6 months or more. To help streamline the sales process, the Company has added Matt Human as Sales Operations Manager. With experience in optimizing processes and systems in growing companies, Matt will assist Marc Crimeni in overseeing the B2B sales process as the Company grows its network of customers. As of today, the Company has sent out approximately 50 samples of its CBD Isolate to over 20 countries. In the past 30 days, the Company has attended 5 cannabis tradeshows across Europe including Prague, Malta, the United Kingdom and Poland, identifying many new potential customers. From these new contacts, the Company anticipates shipping additional product samples over the next 10 days, further increasing its opportunity pipeline. For more information please email email@example.com.
The design of the NEXUS extraction facility requires an input of consistent hemp biomass, both in physical structure and in CBD concentration in order to streamline and monitor production efficiencies. The facility has the capacity to process 1080 kilos of blended hemp flower at a consistent 6% CBD biomass input into 40 Kilos of CBD Isolate every 12 hours. An average of 75% to 80% percent of the Cannabinoids are captured through the extraction process. The Company intends to blend its own biomass together with third party biomass to create a consistent input material of 6% CBD. If the Company can blend to a higher than 6% consistent input, it will increase extraction productivity. In Q1 of 2020 the Company plans to operate its NEXUS facility 7 days a week, 24 hours a day with the intention of increasing its extraction capabilities.
At completion of its 2019 agricultural initiative, Stillcanna will have 855 bales of hemp flower, nearly 100,000 pounds of seed, and a million pounds of leaf and fiber biomass for industrial uses and CBD extraction. Hemp is one of the most versatile products in the world allowing all parts of the plant to be used across a wide variety of industries; from manufacturing CBD to seed used for agriculture, hemp seed oil and as a protein supplement. Hemp fiber can be sold for clothes, rope, fire logs and more as the Company intends to monetize all its harvested products.
Stillcanna’s ORIGIN extraction facility in Romania, a joint venture with its partner Dragonfly Bioscience of the United Kingdom, has received positive feedback regarding its outstanding operational permits from various authorities including local and state fire marshals, the Environmental Agency, the Ministry of Health and the Anti-Drug Agency. All final requests for permits have been filed and the Company remains optimistic that it will receive all permits by January 15, 2020. In addition, the ORIGIN facility recently received and installed a second rotochrome, which has the ability to increase production capacity of THC-free CBD oil once fully operational.
“This is a very exciting time for Stillcanna and our shareholders who have been anticipating proof of concept and sales,” says Jason Dussault CEO, Stillcanna “As a Company in this nascent industry, we have learned a great deal about the seed-to-CBD process and have fulfilled and met many of our corporate mandates. I feel we have made great strides in a relatively short time, and the entire Stillcanna team remains dedicated to delivering additional value to our shareholders.”
About Stillcanna Inc.
Stillcanna Inc. (CSE: STIL) www.stillcanna.com is a Canadian early-stage life sciences company focused on the large scale manufacturing of CBD in Europe. The Company believes its proprietary intellectual property allows it to extract CBD at a lower cost. The Company has signed an initial extraction contract in Europe to be the exclusive extractor for Dragonfly Biosciences LLC, a United Kingdom-based supplier of CBD. The Company also recently completed the acquisition of Olimax NT SP. Z .O.O, a multi-generational hemp agricultural firm that is expected to increase the Company’s market share in the European CBD industry.
On Behalf of the Board
Jason Dussault, CEO
Cautionary Note Regarding Forward Looking Statements: This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including that the Company anticipates adding additional certificates to the B2B web portal, the Company anticipates ongoing monthly shipments of CBD Isolate to Biosciences offices globally, the Company anticipates fulfilling its HempLabs order by the end of December, the Company anticipates shipping hemp to Sequoya on an ongoing monthly basis,, the Company anticipates sending additional product samples to various potential customers within the next 10 days, the Company plans to operate the Nexus facility 24 hours a day for 7 days a week and the Company anticipates monetizing the sale of the hemp components that are not utilized during the CBD Isolate distilling process. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should” or “would” occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including the Company will add additional certificates to the B2B web portal, the Company will make ongoing monthly shipments of CBD Isolate to Biosciences offices globally, the Company will fulfill its HempLabs order by the end of December, the Company will ship hemp to Sequoya on an ongoing monthly basis,, the Company will send additional product samples to various potential customers within the next 10 days, the Company will successfully operate the Nexus facility 24 hours a day for 7 days a week and the Company will successfully monetize the sale of the hemp components that are not utilized during the CBD Isolate distilling process. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, that the Company will not add additional certificates to the B2B web portal, the Company will not make ongoing monthly shipments of CBD Isolate to Biosciences offices globally due to lack of demand or unanticipated supply line or production problems, the Company will not fulfill its HempLabs order by the end of December due to unanticipated supply line or production problems, the Company will not ship hemp to Sequoya on an ongoing monthly basis,, the Company will not send additional product samples to various potential customers within the next 10 days, the Company will not successfully operate the Nexus facility 24 hours a day for 7 days a week and the Company will not successfully monetize the sale of the hemp components that are not utilized during the CBD Isolate distilling process. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
The CSE has not in any way passed upon the merits of and has neither approved nor disapproved the contents of this news release.
SOURCE: Stillcanna Inc.