CALGARY, Alberta, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Sugarbud Craft Growers Corp. (TSXV: SUGR, SUGR.WT, SUGR.WS, SUGR.DB) (" Sugarbud " or the " Company ") is pleased to announce that it has entered into a national product purchase and supply agreement (the " Supply Agreement "), for the Company’s Cannabis 2.0 products with CannMart Inc. (" CannMart ").
Sugarbud is also pleased to announce that, as part of the previously announced contract manufacturing agreement with Heritage Cannabis Holdings Corp. (CSE: CANN) (" Heritage ") (the " Manufacturing Agreement "), it has completed the final development and qualification of its additive-free, 100% cannabis full-spectrum vape cartridges.
Supply Agreement
Under the terms of the Supply Agreement, CannMart will have the ability to purchase Sugarbud branded cannabis extract products for subsequent national distribution and sale to provincially/territorially authorized distributors/retailers under their own sales license and Sugarbud will process and package the Sugarbud branded craft cannabis extract products on behalf of CannMart. The agreement with CannMart is subject to customary regulatory, licensing and new product notification requirements.
“Our entry into the adult use recreational Cannabis 2.0 market in Canada is a major catalyst for the company and we couldn’t be more excited to be partnering with CannMart to accelerate our plans to bring our expanded Sugarbud Craft Cannabis Collection to our target markets and consumers in Canada,” stated Sugarbud CEO, John Kondrosky.
“Our partnership with CannMart is a very significant step forward in the rapid evolution of our Company and just another example of how we continue to focus and execute against our strategic priorities and hit the milestones we have laid out for the Company. Together with our previously launched dried cannabis platform of products, our partnership with CannMart both expands and accelerates our penetration into our core focus markets,” concluded Mr. Kondrosky.
“We are pleased to welcome Sugarbud to our portfolio as many companies are seeing added value in Namaste’s distribution footprint,” said Meni Morim, CEO of Namaste Technologies Inc. (TSXV: N) CannMart’s parent company. “We look forward to working closely with our new partner to expand their reach to Canadian cannabis consumers.”
Sugarbud now expects to be in a position to begin shipping its Sugarbud branded cannabis extract products to provincially/territorially authorized distributors/retailers by the end of Q1 2021.
The Company’s agreement with CannMart also covers the time between today’s announcement and when Sugarbud expects to receive authorization from Health Canada to sell its Cannabis extract products directly to provincially/territorially authorized distributors/retailers and registered patients.
The Company expects approval for its own amended sales license permitting the direct sale of cannabis extracts in early Q3 of 2021
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