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Auxly Announces Issuance of Sales Licence for Kolab Project and Provides Update on Saskatchewan Retail Strategy
VANCOUVER, British Columbia, July 23, 2018 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V:XLY) ("Auxly" or the "Company") is pleased to announce that its wholly-owned subsidiary, Kolab Project Inc. ("Kolab" or “Kolab Project”), has received its sales licence from Health Canada, pursuant to the Access to Cannabis for Medical Purposes Regulations. The sales licence authorizes Kolab to sell dried cannabis to registered Canadian medical patients across the country through its online portal at kolabproject.com.
Kolab will source the best cannabis products from the entire Auxly cultivation platform and through partnerships with acclaimed growers from around the world. Among these will be Kolab’s facility in Carleton Place, Ontario, where the second phase of construction has been completed and is expected to be commissioned for cultivation in the coming months. Once phase three is completed, the facility will total 20,000 sq. ft., have over 20 local employees and be a centre of excellence for the production of medical-grade cannabis.
“The sales licence marks a significant milestone in Kolab’s development of a different kind of company – one that rethinks the patient experience,” said Andrew Rock, Chief Operating Officer of Kolab. “As a craft grower, we are passionate about our product and take our commitment as a licensed producer seriously. Through our focus on research and development, we will produce the highest quality medical-grade cannabis. I am grateful to our team for the dedication and hard work that got us here and look forward to building a community that enriches the health and wellness of Canadian patients.”
The Company is also pleased to announce that Kolab has been selected to apply for a cannabis retail permit in Lloydminster, Saskatchewan. The permit, if granted by the Saskatchewan Liquor and Gaming Authority, will allow for Kolab to operate one physical location in addition to a province-wide e-commerce platform to serve the adult-use market following the legalization of recreational cannabis. The Company is actively working to finalize details of the application and retail concept and anticipates having the retail outlet built and operating following legalization on October 17th, 2018, subject to regulatory and municipal approvals.
“We could not be more pleased with the issuance of the sales licence to Kolab. The receipt of the sales licence is instrumental in allowing Kolab and Auxly to execute on the broader business strategy of the entire platform. We remain convinced that Andrew has assembled the right team and is well equipped to deliver patients an elevated experience by sourcing the best products from across Auxly’s cultivation partners,” said Chuck Rifici, Chairman and CEO of Auxly. “We are also honored to have been selected as a retail cannabis store licence applicant in Saskatchewan. This new retail store and e-commerce presence in Saskatchewan serve as an important piece of Auxly’s downstream distribution segment as we look to address both the medical and adult-use markets on a provincial and national basis.”
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Kolab Project
Kolab Project is a wholly owned subsidiary of Auxly Cannabis Group and is a licensed producer pursuant to the Access to Cannabis for Medical Purposes Regulations. Kolab Project will offer a unique patient experience that will be curated in collaboration with the best and brightest growers, licensed producers, creators, and artists. For more information, please visit kolabproject.com.
About Auxly (TSX.V:XLY)
Auxly Cannabis Group Inc. is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.
Media Enquiries (only):
For media enquiries or to set up an interview please contact:
Sarah Bain, VP External Affairs
Lejla Latifovic, Director, Kolab Experience
Notice Regarding Forward Looking Statements:
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: expectations of future growing capacity at the Kolab facility and the projected costs associated with each expansion phase of the facility; the completion of the planned build-out and expansion phases; the funding requirements for each expansion phase; the Company’s ability to obtain the cannabis retail permit in Saskatchewan and to generate revenue from such cannabis retail permit, political change, future legislative and regulatory developments involving cannabis; competition and other risks affecting the Company in particular and the cannabis industry generally.
A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to, whether: Kolab is able to maintain its sales license; the Company is able to obtain the cannabis retail permit in Saskatchewan, general economic, financial market, regulatory and political conditions in which the Company operates will remain the same. Additional risk factors are disclosed in the revised annual information form of the Company for the financial year ended December 31, 2017 dated May 24, 2018.
New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.