VANCOUVER, May 28, 2019 /CNW/ - StillCanna Inc. (CSE: STIL) ("STIL" or the "Company") is pleased to announce that further to its press release dated March 28, 2019, it has signed a definitive agreement to supply Bioscience Enterprises of California with up to C$36,000,000 worth of CBD Isolate.
"We are extremely pleased to formalize our relationship with StillCanna," stated Richard Parker President of Biosciences Enterprises, "not a day goes by that our firm isn't looking for a company like StillCanna, but finding a knowledgeable seed to shelf CBD manufacturer in this young industry is extremely rare. With access to their own biomass and years of extraction expertise StillCanna makes a perfect partner for us today and into the future."
To accelerate its product delivery, the Company is implementing a two-stage extraction plan for Poland. Stage one will consist of equipment engineered to optimize the production of CBD Isolate. With permitting in place and equipment ordered for Poland, it is anticipated that the initial line will produce and ship CBD Isolate Q4 of 2019 allowing the Company to begin fulfilling its obligations under the Biosciences agreement.
"One of the many benefits in our acquisition of Olimax in Poland is its infrastructure including buildings and existing licenses to extract CBD. By having these licenses in place, Olimax alleviates what could be a lengthy bureaucratic process to obtain such licenses. The purchase and installation of equipment is not the delaying factor in building an extraction facility in Europe, it's the time required to obtain the many license and permits to manufacture CBD," explained Jason DussaultChief Executive Officer of StillCanna, "the Company is ecstatic about being able to hit the ground in Poland running."
Stage two of the Company's extraction plan in Poland is a brand new, ground up, GMP certified CBD extraction facility engineered to produce over 80 million grams of CBD per year. The Company has budgeted an initial C$8.5 million for construction and equipment. Completion of stage two in Poland is expected to be completed in 10 to 14 months.
Since the Company's initial financing in October 28, 2018 it has been focused on the building and completion of its Romanian extraction facility. Originally, the Company had anticipated a 12 to 14 month build to be fully operational. The Company remains on time and on budget. Over the past 7 months the Company has:
- Secure the physical location;
- Completed all architectural drawings, electrical drawing and fire plan;
- Updated the architectural drawings to be GMP complaint;
- Ordered, installed and wired all the equipment required to produce CBD;
- Processed tons of hemp and have stored tons of flower waiting final processing;
- Purchased and received all laboratory equipment for testing and chromatography;
- Completed construction on a minus 26 degree, 400 square foot walk in freezer;
- Secured leading Chemists and PhDs to oversee production;
- Built GMP compliant facility including special floors, ceiling, walls, lights doors and ventilation;
- Achieved a major milestone by receiving final approval from the Environmental Protection Agency;
- Completed our GMP Standard Operating Procedures
The Company's equipment and personnel have been in place in Romania for many months as we anxiously await our final permits to manufacture CBD. The Company expects that it will receive all required licenses and permits and be in full production within its original 12-month timeline. The Company is waiting for certain approvals including, but not limited to:
- The Romanian General Inspectorate for Emergency Situations;
- A Geotechnical Report;
- Health Ministry Approval; and
- Final Fire Inspection.
The Company expects to receive all remaining approvals required to be obtained in its normal course of business without complication.
The Company looks forward to manufacturing and shipping CBD to meet the needs of its current and future partners.
The Company is also pleased to announce 1,800,000 stock options have been granted to certain officers and consultants pursuant to the Company's stock option plan. The options are exercisable after three months from the grant date for a period of five years at a price of $1.23 per share.
About StillCanna Inc.
StillCanna Inc. (CSE: STIL) www.StillCanna.com is a Canadian early-stage life sciences company focused on large scale CBD extraction in Europe. The Company believes its proprietary intellectual property allows it to extract CBD at a lower cost. The Company has signed an initial extraction contract in Europe to be the exclusive extractor for Dragonfly BioSciences LLC, a United Kingdom-based supplier of CBD. The Company also recently completed the acquisition of Olimax NT SP. Z .O.O, which is expected to increase the Company's market share in the European CBD industry.