Pickering, Ontario--(Newsfile Corp. - October 29, 2021) - Ayurcann Holdings Corp. (CSE: AYUR) (FSE: 3ZQ0) (the "Corporation" or "Ayurcann"), a Canadian cannabis extraction company specializing in the processing of cannabis and hemp for the production of oils and various derivative products, is pleased to announce that further to its press releases dated April 28, 2021 and May 18, 2021, Ayurcann has completed their Phase 2 expansion on their Pickering facility (the "Build-Out"), providing increased production and manufacturing capabilities. The completion of the Build-Out was done on time and on budget and provides for the immediate commencement of additional production capacity.
The cannabis industry in Canada is growing, in light of this, the Company is focusing on national and international partnership opportunities. With products such as the Fuego Vapes and Vida Tinctures available in the Canadian recreational markets and topicals such as Glow Day and Night, Green Bee Topicals, Her Highness Intimates, and Innocan Wellness CBD being manufactured for future entry into those markets, Ayurcann has distinguished itself as an established and reliable partner, who has the capacity to formulate, test and manufacture products at the highest standards for current and future requirements.
The aim of the Build-Out was to provide flexibility in manufacturing. Ayurcann designed multiple production rooms geared towards increased capacity for "Cannabis 2.0 and 3.0" products. With the Build-Out complete, Ayurcann is able to enhance its processing capacity up to 300,000 kg of biomass per year, and its manufacturing capacity for up to 3,000,000 product fills, making Ayurcann one of the largest processor and co-manufacturer in the country.
"We are thrilled to announce our increased capacity to service the growing needs in the market and we are optimistic about our market penetration and potential for growth. As an industry leading processor and manufacturer, we have been working alongside our partners to support them when it comes to quality, reliability and value," stated Igal Sudman, Chief Executive Officer of Ayurcann.
Earn-Out Payment
In connection with the completion of the Build-Out and further to the Corporation's press release dated November 25, 2020, the Corporation has provided Health Canada with notice that the Build-Out has been completed, triggering the second and final earn-out entitlement (the "Earn-Out") to original Ayurcann Inc. shareholders of an aggregate of 5,159,958 common shares of the Corporation ("Common Shares"). The Earn-Out payment was equal to the quotient of $1,000,000 divided by the current market price. The market price, as originally agreed to, was determined as the greater of (i) $0.05 and (ii) the ten (10) day volume weighted average trading price of the Common Shares on the Canadian Securities Exchange ("CSE") prior to the date of the Earn-Out being met, which equates to $0.1938.
https://www.newsfilecorp.com/release/101279