Ravenquest signs MOU to supply weed to B.C. Ravenquest signs MOU to supply weed to B.C.
2018-09-25 06:55 ET - News Release
Mr. George Robinson reports
RAVENQUEST PROVIDES CORPORATE UPDATE
Ravenquest Biomed Inc. has provided a full update on milestones achieved and strategic initiatives undertaken as the company prepares for legalization on Oct. 17, 2018. We've signed a major supply agreement with the Province of British Columbia, we'll have two facilities in major markets running at full capacity by year's end, we're rapidly expanding our capacity, executing on new agreements with Indigenous communities, launching two attractive new brands and building out a craft grow division to supply boutique brands to discerning consumers.
Update on License to Sell and Supply MOU with BCLDB
A huge step forward for our Company, RavenQuest has entered into an MOU to supply recreational cannabis to the Province of British Columbia. We expect virtually all of 2019 production from our Markham facility will be sold to BCLDB.
Benilda Sable, who leads Quality Assurance and Compliance for RavenQuest, commented that "after complying with a series of rigorous requests for information from Health Canada's review unit, we are now waiting for a final date from the federal inspection unit. With legalization nearing, Health Canada's scrutiny was tighter as compliance was evaluated with the framework of migrating the license from the Access to Cannabis for Medical Purposes Regulations (ACMPR) to the Cannabis Act."
Obtaining our sales license will be a significant milestone for our Company as we graduate into an exclusive class of companies licensed to sell cannabis legally in Canada.
Our Technology is Real, our Facilities are Built!
Our Markham facility is completed and growing cannabis right now. Head of Plant Science for RavenQuest, Dr. Simerjeet Kaur, expressed that "our grow rooms are filled with strong, beautiful cannabis and plant health is excellent. We look forward to harvesting additional rooms near-term so that we can begin shipping product in fulfillment of our agreement with BCLDB."
Our Edmonton facility is near completion and each grow room is now being equipped with the Company's fully automated Orbital Garden 2.0 grow technology. We've checked all the boxes and are now awaiting final approval from Health Canada for a license to cultivate in Edmonton.
The Orbital Garden 2.0 technology being installed at our Edmonton facility is a remarkable technological innovation in large scale cannabis production. Each Orbital Garden 2.0 contains up to 280 plants revolving or "orbiting" around one light source, leading to a 65% reduction in electrical costs, as well as 90% less nutrient expenses while wasting almost zero water. Not only does this tell a dramatic and innovative sustainability story, but also creates a perfect and repeatable grow environment for our plants, leading to a premium and remarkably consistent end product. All of our facilities are ultra modern, setting the standard for automation, consistency and cleanliness, and our grow environments can be precision controlled from outside the grow room by as little as two individuals running the entire facility using a human-machine interface.
Our cannabis is dried and cured using pharmaceutical dryers procured from Europe and designed specifically for perfect drying conditions while maintaining the integrity of the plant's natural terpenes and trichomes. Our pharmaceutical grade drying process dries cannabis much faster than hanging to dry meaning our product goes to market faster while maintaining full flavour and entourage effects for a first class consumer and patient experience.
Our 500% Capacity Expansion is Underway
Construction is underway on a 250,000 square foot, facility on Fort McMurray First Nation #468, and we expect the first 25,000 square foot module to be complete by fall 2019. This facility will be a purpose-built, EU-GMP compliant facility containing our state-of-the-art grow methodologies including Orbital Garden 2.0.
Ground has also been broken at a 125,000 square foot Port Mellon, BC facility, just a short ferry ride from Vancouver, BC, a major market of over 2.5 million residents.
Both facilities are expected to be 50% complete and operational in 2019, with full completion targeted for 2020.
Consumer Brands to be Rolled Out Prior to Legalization
We've taken a great deal of time and have carefully considered our approach for adult recreational branding. We're putting the finishing touches on these truly unique brands and we expect to roll-out our flagship recreational brands, directed at both feminine and a masculine target markets, prior to legalization. We anticipate releasing detailed information on our branding shortly, and will feature visuals of our branding and packaging concepts during upcoming ad spots on BNN, Canada's business television network.
Indigenous Partnership with Alexander First Nation
Our focus on working with Canada's Indigenous communities is unique and we continue to build our relationships here. With these communities reaching for sustainable economic independence, RavenQuest participating with a distribution and tax advantage, and consumers able to access premium quality cannabis at competitive pricing, we see this as a win-win-win for everyone. As we continue to expand our list of Indigenous partners, RavenQuest has entered into a services contract to develop a cannabis application with Alexander First Nation, located near Edmonton, Alberta. This agreement is in addition to the previously announced partnership to build a 250,000 square foot cannabis facility with Fort McMurray First Nation #468, solidifying RavenQuest's position as a leading partner in cannabis for Canada's Indigenous communities.
RavenQuest's Craft Grow Offering is Being Built Out!
RavenQuest is teaming up with craft growers in a big way. We see the value in offering boutique brands to discerning consumers, so we've announced an initiative to partner with these brands. These microcultivators need a strategic partner to help them transition into the legal side of the industry and our services division, the leading cannabis consultant in the country, is the perfect partner. RavenQuest began this initiative by announcing a LOI to acquire Elephant Extracts on June 14, 2018 and expects many more transactions of this nature in the months ahead.
R&D is in our DNA
RavenQuest's research partnership with McGill University continues apace. Thus far, the research has uncovered several key microbes which naturally stress the plant, producing impressive disease resistance, up to 30% yield improvement and stabilization.
Corporate Activity
To date, we have raised over $40 million since going public less than a year ago. Most recently, this spring we raised $8,053,455 in an oversubscribed private placement. We're using proceeds to complete construction at the Edmonton facility, prepare for our Port Mellon and Fort McMurray projects and for general corporate purposes.
All four pillars of RavenQuest "four-pillars" approach continue to move forward in the following ways:
Investment Division: Projects on schedule for licensing; Expect to reach full capacity at Markham and Edmonton for calendar 2019; Initial move into craft grow space; Consumer recreational branding launch within weeks; Supply MOU with BCLDB Indigenous Partnerships: New agreement announced with Alexander First Nation Services Division: Produced over $1.2 million in revenue for 2018 to date Scientific R&D: Advanced research project with identification of key microbes for disease resistance and yield improvement
RavenQuest CEO, George Robinson, was a featured speaker at The Moneyshow (Cannabis Investing Symposium) on September 14-15 in Toronto, Ontario and delivered the keynote address at the Ontario First Nations Economic Advancement Conference.
RavenQuest will also be a featured advertiser in BNN, Canada's largest business network, throughout the month of October.
RavenQuest wishes to thank our shareholders for their ongoing support and interest in our rapidly growing Company. We went public less than one year ago with a small team of experienced professionals and have accomplished a remarkable amount in a short time period. As we approach a historic year of firsts, including the first G7 country to legalize adult use recreational cannabis, we see our growth trajectory accelerating in 2019 as we look forward to revenue and expansion milestones, increased branding and consumer presence, plant research breakthroughs and international expansion. Our stated goal is to deliver exceptional shareholder value. As RavenQuest's largest shareholder, I am committed to delivering a positively rewarding and unforgettable 2019 to our shareholders.
About RavenQuest BioMed Inc.