Lifestyle Delivery Systems Inc.'s Subsidiary, CSPA Group, Inc., Signs a Lease Agreement for a 20,000 Square Foot Warehouse Facility
VANCOUVER, British Columbia, April 10, 2019 /CNW/ -- Lifestyle Delivery Systems Inc. (CSE: LDS), (OTCQX: LDSYF), (Frankfurt: LD6, WKN: A14XHT) ("LDS" or the "Company") announces that its wholly-owned subsidiary, CSPA Group, Inc., has entered into a five-year lease agreement for 20,000 square feet of warehouse space at $2 per sq. ft. per month. The new facility will be used to expand the Company's transportation and distribution operations in Adelanto, California.
The requirement to increase the square footage for CSPA Group, Inc.'s transportation and distribution operations is dictated by the expected start of operations of Highway 395 Dispensary and 420 Prime Delivery Service, which are currently scheduled for the 3rd quarter of 2019. The new facility is conveniently located on the lot adjacent to the current Adelanto manufacturing facility, removing the need to engage third-party transportation services as well as allowing the Company to use its current armed security services at both locations significantly reducing the cost that would be required at any other location. The Company estimates its initial transportation and distribution space requirements to be approximately 10,000 square feet, which will allow the Company to sublease an unused portion of the building until increased space is required.
Brad Eckenweiler, CEO of LDS, stated,
This additional facility will allow for significant market growth in all CSPA Group's product lines as well as the products from Core Isogenetics, Inc. The warehouse will hold inventory of both, raw material and finished products, and will include an environmentally-controlled storage space for seeds and seedlings. The availability of this facility is certainly timely for our operations; not only is it located in the green zone, but the proximity to our manufacturing space will allow us to easily coordinate transportation and distribution of our products saving us time and tens of thousands of dollars in transportation and security costs.
The Company anticipates only limited construction cost to prepare the building for transportation and distribution operations. The Company will continue to update the market on all operational developments as they become relevant.
About CSPA Group, Inc.
CSPA Group, Inc. is located in Adelanto, California and is a City-permitted and State-licensed manufacturer and distributor/transporter in the California cannabis industry. The company manufactures extracted oils and distillates, producing CannaStripsTM under a license agreement with Lifestyle Delivery Systems Inc. a British Columbia company.
About Core Isogenetics, Inc.
Core Isogenics, Inc. is located in Adelanto, California and is a City-permitted and State-licensed cultivation and nursery operation in the California cannabis industry. Developing isogenic seed strains and automated cultivation methods for the cannabis industry with Lifestyle Delivery Systems Inc., a British Columbia company.
Lifestyle Delivery Systems Inc. is a technology company that licenses its technology to a state-of-the-art production and packaging facility located in Southern California. The Company's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to other forms of delivery but also superior bioavailability of cannabis constituents. Some strips will also include supplemental co-active ingredients such as nutraceuticals, vitamins and peptides. The technology provides a new way to accurately meter the dosage and assure the purity of selected product. From start to finish, the production process, based on the Company's technology, tests for quality and composition of all the ingredients used in each and every strip which results in a delivery system that is safe, consistent and effective.
Lifestyle Delivery Systems Inc.
CEO & Director
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Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to the Company's limited operating history and the need to comply with environmental and governmental regulations. In addition, marijuana remains a Schedule I drug under the United States Controlled Substances Act of 1970. Although Congress has prohibited the US Justice Department from spending federal funds to interfere with the implementation of state medical marijuana laws, this prohibition must be renewed each year to remain in effect. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, The Company undertakes no obligation to publicly update or revise forward-looking information.