SugarBud Announces Closing of the Disposition of its Oil and Gas Assets and Becomes a Pure-Play Canadian Cannabis Company
CALGARY, April 2, 2019 /CNW/ - SugarBud Craft Growers Corp. ("SugarBud" or the "Company") is pleased to announce that it has closed the sale of the Company's oil and gas assets (the "Dispositions") with several arm's length purchasers (the "Purchasers") pursuant to which the Purchasers have acquired all of the Company's oil and gas assets for gross proceeds of approximately $1.75 million in cash.
The series of Dispositions eliminates approximately $4.1 million of asset retirement obligations associated with the assets and significantly strengthens the Company's balance sheet. SugarBud has no debt or abandonment liabilities and does not anticipate requiring any additional financing prior to receipt of its Cultivation License from Health Canada.
SugarBud is an Alberta-based emerging cannabis company engaged in the development, acquisition, production and distribution of cannabis in Canada.
Forward Looking and Cautionary Statements
This news release may include forward-looking statements including opinions, assumptions, estimates, the Company's assessment of future plans and operations, and, more particularly, statements concerning: the receipt of a Cultivation License from Health Canada and the timing thereof; the cultivation of cannabis at the facility in Stavely, Alberta; and the completion of the Disposition and its impact on the Company's balance sheet, including that additional financing will not be required in advance of receipt of a Cultivation License. When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company that include, but are not limited to, the timely receipt of all required regulatory and third-party approvals. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: regulatory and third party approvals, including receipt of cultivation and sales licenses from Health Canada, not being obtained in the manner or timing anticipated; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Please refer to the Company's annual information form ("AIF") for the year ended December 31, 2017 and management's discussion and analysis ("MD&A") for the three and nine months ended September 30, 2018 for additional risk factors relating to the Company. The AIF and MD&A can be accessed under the Company's profile on www.sedar.com.
Except as required by applicable laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.
Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE SugarBud Craft Growers Corp.