Captiva Verde unit partners with Adastra Labs
2020-12-07 11:01 ET - News Release
Mr. Jeffrey Ciachurski reports
SOLARGRAM FARMS SELECTS CANNABIS BIOMASS EXTRACTION PARTNER AND UPDATES HEALTH CANADA SALES AND PROCESSING LICENSE APPLICATION
Captiva Verde Land Corp.'s Solargram Farms Corp., a holder of a Federal Health Canada licence to cultivate, test, harvest and sell cannabis, has successfully selected its cannabis biomass extraction partner and provides an update to its Health Canada sales and processing licence application.
Extraction Partner Chosen
Through a very rigorous selection process, Solargram Farms has chosen Adastra Labs Holding Ltd. (CSE:XTRA) (FRANKFURT:D2EP) ("Adastra") of British Columbia, as its preferred extraction partner for processing its biomass for monetization within the Canadian market place commencing the first quarter 2021. Adastra states "Solargram Farms has the highest THC potency we have ever seen from any outdoor cultivation in Canada".
Under the terms of the agreement, Adastra will process Solargram's high quality biomass over the next six months commencing in December 2020, producing and supplying back to the company, high quality THC and CBD full spectrum distillate oil. This high grade cannabis oil will provide the basis for significant planned company revenues through value-added, high quality, cannabis concentrate products such as vape pens, tinctures, bath bombs, shatter, topicals and other edibles.
About Adastra Labs Holdings Ltd.
Adastra Lab Holdings Ltd. is a Langley, BC-based cannabis company with a co-located Health Canada Licensed Standard Processing Facility and Analytical Testing Laboratory. Adastra can produce cannabis extract through Cryo-Ethanol extraction from Evolved Extraction Solutions as well as conduct in-process quality testing. Such extracts can be easily incorporated into edibles, beverages, topicals, tinctures, vape cartridges, and other products that will serve the Canadian medical and recreational cannabis markets.
Health Canada Sales and Processing License Application Status Update
Immediately following our harvest completion on October 30, 2020 Solargram, with its cannabis consultants Deloitte, submitted its sales and processing license application to Health Canada for review. This licensing application process is a rigorous, multi-phased acceptance process that will enable Solargram to monetize selling and distributing its authorized products into the provincially run, Canadian retail distribution network. We expect and anticipate that Solargram will receive this license within the first quarter of 2021.
In anticipation of this timeline, Solargram has commenced strategic discussions including pricing negotiations with several Canadian wholesalers across Canada and the initial discussions have exceeded early expectations.
One hundred per cent of the Solargram's shares are held in an escrow account to be transferred to Captiva Verde in exchange for 35 Million Captiva shares subject to a tight pooling agreement, subject to Health Canada approving an in-process application by all the Captiva Verde Officers and Directors to pass a security clearance and CSE approval.
We seek Safe Harbor.
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