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Auxly Provides Operational Update on Uruguay-Based Inverell S.A.
VANCOUVER, British Columbia, Sept. 13, 2018 (GLOBE NEWSWIRE) -- Auxly Cannabis Group Inc. (TSX.V - XLY) ("Auxly" or the "Company") is pleased to provide the following operational update on the Company’s operations in Uruguay conducted through Inverell S.A. (“Inverell”). Inverell, founded and operated by Dr. Raul Urbina, a world-renowned expert in large scale outdoor cultivation, micropropagation, plant breeding and extraction operations, is a federally licensed cannabis operator based in Montevideo, Uruguay.
Pursuant to the definitive agreement (the “Agreement”) dated April 10, 2018, the Company will acquire 80% of the outstanding common shares of Inverell in exchange for aggregate consideration of USD$15,000,000. Part of the consideration is subject to Inverell achieving certain milestones related to the registration of certain cannabis genetics and the successful export of CBD products. The transaction remains subject to regulatory approval in Uruguay which the Company expects to receive imminently.
2018/2019 Cultivation Plan
Inverell has finalized its 2018/2019 cultivation plan where it will plant 150 hectares, composed of over 1,500,000 hemp plants, starting in mid-October 2018. Inverell’s land parcel contains key pieces of infrastructure needed for the mass cultivation of hemp plants, including a large fresh water lake that feeds into an existing irrigation system infrastructure. Inverell expects that the first harvest, once completed in April 2019, will yield approximately 75,000 kilograms of biomass to be used as feedstock for its extraction facility described below.
Inverell is progressing well toward the expected 2019 completion of its extraction facility (the “Extraction Facility”) located within Uruguay’s Parque de las Ciencias (“PDC”). The PDC is a Free Trade Zone located near the Montevideo airport which exempts facilities located on the property from local taxes for activities conducted in the Free Trade Zone. Inverell is pleased to be working with TSYA S.A. (“TSYA”) on the technical design and buildout of the Extraction Facility in the PDC. TSYA has significant experience on the design and buildout of world-class pharmaceutical facilities, having completed the state-of-the-art Mega Pharma Campus located in the PDC which consists of a pharmaceutical plant, R&D center and logistics hub. Upon completion, the Company expects the Extraction Facility to have the capacity to output 12,000,000 grams of CBD crystal per annum for local consumption and international export.
Inverell has made significant progress towards its genetics objectives over the preceding months, having moved several new genetic strains to the propagation phase. Inverell expects that the combination of proprietary genetics and feminized seeds, currently being propagated and produced in Inverell’s existing greenhouse, will result in significant operational efficiencies and improved cultivation yields.
Hugo Alves, President and Director of Auxly commented: “Taking into consideration that Inverell is a key partner and contributor to the upstream segment of the Auxly platform, we could not be more pleased with the progress Dr. Urbina and his team have made in the short time since the announcement of the acquisition. The depth of Dr. Urbina’s team’s knowledge on plant breeding, micro-propagation, high density outdoor cultivation and extraction of high value molecules from plants is truly unmatched. For these reasons, we believe that Inverell is poised to be a dominant player in the production of CBD extract for export in South America with their world class hemp cultivation and processing assets.”
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Auxly Cannabis Group Inc. (TSX.V: XLY)
Auxly Cannabis Group 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.
About Inverell S.A.
INVERELL – innovation beyond imagination - was founded by Dr. Urbina in February 2017 and has a committed team with a passion for innovation. Inverell has already achieved the creation of various strains, a genetic bank, growth protocols, in vitro propagation protocols, massive seed propagation protocols and innovative and more efficient organic extraction processes.
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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: the Company's ability to obtain all requisite regulatory approvals for the production and export of cannabinoid products from Uruguay and/or import of such products to other federally legal jurisdictions, political changes in Canada, Uruguay and internationally, future legislative and regulatory developments involving cannabis in Canada, Uruguay 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.
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: Inverell is able to maintain its cannabis operator license, the Company is able to successfully develop international distribution channels for cannabis products, Inverell is able to successfully cultivate and harvest outdoor hemp crops in Uruguay, Inverell can obtain all necessary governmental and regulatory permits and approvals for the Extraction Facility, and whether such permits and approvals can be obtained in a timely manner, and general economic, financial market, legislative, regulatory, competitive 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.