VANCOUVER, B.C., Oct. 17, 2018 (GLOBE NEWSWIRE) -- Sunniva Inc. (“Sunniva” or the “Company“)
(CSE:SNN) (OTCQX:SNNVF), a North American provider of cannabis products and services, is pleased
to announce that the Company has signed a non-arms length binding letter of intent dated October 16, 2018 with the Oakland Vision
Project (“Vision”) to acquire all the issued and outstanding equity interests of the companies that comprise Vision (the
“LOI”). Vision is co-owned by Vinayak Shastry, Sunniva’s President of US Operations. Vision operates a licensed
cultivation facility located in Irvine, California (the “Vision Facility”). Completion of the acquisition remains
subject to a number of conditions including, among other things: the negotiation and execution of a definitive agreement between
Sunniva and Vision, completion of due diligence and receipt of regulatory approvals, including approval of the Canadian Securities
Exchange (“CSE”).
The Vision Facility is lead by a seasoned group of cultivation professionals who have experience in both small and large-scale
operations. The cultivation team is currently producing some of the highest quality pesticide free cannabis flower in California.
The acquisition will provide Sunniva with:
- A proven cannabis cultivation team to manage Sunniva’s production operations in California
- Proof of concept of Sunniva’s strategy focussed on full vertical integration across the entire value chain, from seed to
sale
- Current production capacity of ~1,600 lbs per year with development plans to scale production to ~8,000 lbs per year in 2019,
with an estimated capital investment of $1.5 million and estimated production costs below $1.00 per gram
- Clean clones for onboarding into the Sunniva California Campus
- Library of more than 20 proven genetic strains with on-site genetics lab for the development of future strains
- Premium flower and trim to launch high end Sunniva branded product lines
“This acquisition will deliver full vertical integration in California that strategically enhances the value of the Sunniva
brand. Production from this facility will allow Sunniva to launch its first premium-quality craft flower brand with the
assurance of large-scale production from this facility and the large-scale 325,000 sqft purpose-built, high technology Sunniva
California Campus greenhouse. The key to brand success in California will be the ability to produce high-quality pesticide-free
products at a large-scale. This acquisition and our state-of-the-art cultivation and extraction facility positions us as a
market leader in California,” commented Leith Pedersen, President of Sunniva.
“Sunniva has recently assembled a preeminent in-house marketing team that is developing a house of brands that will include high
end extracts, flower, pre-rolls, vaporizer and vape cartridges along with a future beverage line. We are excited to immediately
show proof of concept with this strategic acquisition demonstrating vertical integration from seed to sale and we anticipate the
initial Sunniva house of brands to be launched commencing January 2019.”
Total transaction consideration will be USD $1 million through the issue of common shares of Sunniva Inc. (“Shares”) upon
closing and up to an additional USD $2 million through the issue of Shares based on the achievement of certain operational
milestones by the end of 2019. The Company is not assuming any long-term debt of Vision as part of the transaction and there
are no finder’s fees payable. The number of Shares issued will be based on a price per Share of $5.24, which is the volume
weighted average trading price of the Shares on the CSE for the five (5) trading days prior to execution of the LOI.
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically integrated cannabis company operating in the world’s two largest cannabis
markets – Canada and California. Our ability to leverage our large-scale, purpose-built cGMP designed greenhouses, offering
better quality assurance with cannabis products free from pesticides, uniquely positions Sunniva as a leading supplier of safe,
high quality products at scale. Through our strategically positioned cultivation and extraction facilities, we are launching
Sunniva branded products in various product categories including flower, pre-rolls, beverages, vape cartridges, extracts as well as
aggressively pursuing upstream vertical opportunities including distribution and retail expansion. Sunniva's management and board
of directors have a proven track record for creating significant shareholder value both in the healthcare and biotech
industries.
About the Oakland Vision Project.
The Oakland Vision Project (Oakland Vision Project Leasing, LLC, Oakland Vision Project, Inc. and Vision Alchemy, LLC) have been
in business since 2015 producing high-grade cannabis flower in California. Lead by a well-established cultivation team which has
developed proprietary IP and standard operating cultivation procedures in order to maximize production yields while ensuring costs
below $1.00 per gram. The Vision team have extensive knowledge, understanding and expertise operating a vertically integrated
cannabis facility in California.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes statements containing certain "forward-looking information" within the meaning of applicable
securities law ("forward-looking statements"), including, but not limited to, statements with respect to the conditions of
completing the acquisition, including negotiating and executing the definitive agreement, regulatory approvals, and future
production estimates, timing and costs from the Vision Facility. Forward-looking statements are frequently characterized by
words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are
only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the
forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no
obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as expressly required by applicable law.
Company Contact:
Dr. Anthony Holler
Chairman and Chief Executive Officer
Investor Contact:
Phil Carlson / Erika Kay
KCSA Strategic Communications
Phone: (212) 896-1233
Email: pcarlson@kcsa.com / ekay@kcsa.com
Media Contact:
Katelyn Tumino
KCSA Strategic Communications
Phone: (212) 896-1252
Email: ktumino@kcsa.com
