Organic Flower to Enter Into Exclusive Cannabinoid-Infused Beverage Supply and Distribution Agreement
VANCOUVER, British Columbia, April 23, 2019 (GLOBE NEWSWIRE) -- Organic Flower Investments Group Inc. (CSE: SOW)(FWB: 2K6)(OTC: QILFF) ("Organic Flower" or “OFIG” or the “Company”) is pleased to announce that the Company has entered into a binding letter of intent (the “LOI”), dated April 22, 2019, to acquire 80% of Potluck Potions and Edibles Inc. (“Potluck”). Potluck specializes in the management of beverage industry supply chains, including the bottling and manufacturing of a variety of beverages (the “Bottler” of the “Facility”).
The Bottler boasts extensive experience manufacturing for leading beverage brands such as Heineken, SABMiller as well as the Coca-Cola Company. The Facility is strategically situated in the Greater Toronto Area (the “GTA”) affording the Company unbridled access to the largest addressable Canadian marketplace. The GTA is buoyed by established infrastructure, offering the flexibility to accommodate shipments from multiple ports and hubs across North America.
The Facility can achieve throughput of up to 30-million bottles per year and is equipped with state-of-the-art bottling equipment; configured to conduct rapid production runs, with minimal downtime for production line changeovers. The Facility is fully operational and has been granted the following industry certifications:
- Good Manufacturing Practices (“GMP”);
- Canadian Organic Standards;
- Certified Vegan;
- Fair Trade Certification (ISO 17065); and,
- Kosher Facility Status.
Through the acquisition of Potluck, Organic Flower plans to leverage the Facility to produce a suite of both cannabinoid-infused and functional beverages. The Facility is presently configured to produce formulations for water, coffee, tea, juice and carbonated sodas in a variety of formats, including glass bottles, polyethylene terephthalate (“PET”) bottles and aluminum cans. The Facility has the capabilities to develop and produce premium beverages that exceed market standards, by leveraging innovative industry technologies including:
- Pharmaceutical-grade mixing tanks;
- Advanced UV sterilization; and,
- Custom Extended Shelf Life (“ESL”) bottling lines
The functional beverage category is increasingly becoming the popular choice among consumers who are seeking low-calorie, nutrient-dense options as a healthy alternative to traditional beverages. The global functional beverage market is expected to grow at a compound annual growth rate (CAGR) of 6.1 per cent to $93.68-billion (U.S.) by 2019, according to a new study by Grand View Research Inc1. Organic Flower’s functional beverage formulations will address major and growing consumer health and wellness needs for the modern lifestyle.
ACCESS TO CANNABIS FOR MEDICAL PURPOSES REGULATION (“ACMPR”)
Concurrently, Organic Flower will assist with the Facility’s application for relevant or applicable Health Canada license(s) (the “License” or “Licenses”), or any other such relevant certifications, which permit the Bottler to supply and distribute a suite of cannabinoid-infused beverages, pursuant to relevant ACMPR and Cannabis Act regulations.
Joel Dumaresq, Chief Executive Officer and a Director of Organic Flower stated:
Canada’s progressive regulatory environment coupled with best-in-breed management, has positioned this facility as the ideal beachhead for future global exports of cannabinoid-infused beverages. We are thrilled to be working with roster of leading global experts and look forward to formulating a portfolio of functional and adult-use beverage formulations to address a number of lifestyle verticals, including, mood and energy, relaxation, sleep and stress relief. This exclusive supply and distribution equips us with the necessary resources to produce quality products to market in an expedited fashion.
Organic Flower is currently in the midst of medicinal and adult-use brand development, including its functional beverage line. The initial beverages are anticipated to be ready for consumers if and when Health Canada allows consumer beverage products to be legal for sale. The marketing and eventual distribution of Organic Flower’s beverage products will follow additional testing and will be subject to necessary approvals and licences to be granted by Health Canada and regulatory authorities in other territories
Under the terms of the LOI, the Company will issue 10 million common shares upon the execution of the definitive cannabinoid-infused supply and distribution agreement; and an additional 6 million common shares upon the achievement of certain milestones to be defined under the subject supply and distribution agreement.
The Company will pay finder's fee upon closing of the transaction.
Leveraging strategic relationships, proprietary investments and exclusive partnerships with preeminent international cannabis cultivators and formulators for the development of best in class products and brands to be marketed and distributed throughout our global footprint.
Via its wholly owned subsidiary, Delta Organic Cannabis Corp (“DOC”), Organic Flower is launching one of the largest and most efficient cannabis facilities on the planet. Organic Flower has control or direction over 44,852,040 common shares of Agra, representing 10.12 per cent of the issued and outstanding shares of Agra on a non-diluted basis.
ON BEHALF OF THE ORGANIC FLOWER INVESTMENTS GROUP INC. BOARD OF DIRECTORS
+1 (604) 687-2038
Learn more about Organic Flower by visiting our website at: https://sowcannabis.ca/
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Notice Regarding Forward Looking Information:
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, the Company’s ability to secure distribution channels in international jurisdictions, competition and other risks affecting the Company in particular and the cannabis industry generally.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.