CBD Distillation Process
VANCOUVER, British Columbia, July 14, 2020 (GLOBE NEWSWIRE) -- AgraFlora Organics International Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF) is pleased to announce its wholly owned subsidiary Sustainable Growth Strategic Capital Corp. (“SGSC” or “the Company”), a federally licensed cannabis company based in the Greater Toronto Area (“GTA”), in partnership with its biomass partner MicroC45, has generated an inventory of approximately 1,000 kg of CBD Crude Oil and Distillate (collectively “CBD Oil”), which it is readying for sale this quarter. The CBD oil was produced from approximately 10,000 kilograms of hemp biomass that was subject to the Company’s proprietary pre-extraction processes. The Company has retained an inventory of approximately 10,000 kilograms of additional hemp biomass ready for extraction and processing.
The Company is currently working to further refine the CBD Oil into CBD Isolate, with manufacturing expected to start this month. If the CBD Oil is converted fully into CBD Isolate, the Company forecasts it would have an inventory of over 850 kilograms of isolate. The Company is currently engaged in negotiations with potential buyers to determine the optimal sales mix of CBD Isolate, CBD Distillate and CBD Crude Oil and expects to close its first bulk transactions this quarter.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb221b31-07bc-4660-a413-bcaa9a1b2c4d
“It is our view that the CBD product market is still in the early days in Canada. We are well positioned to solve the short term supply issues of CBD ingredients such as CBD Isolate and CBD Distillate, which will help unlock growth in Canada’s CBD product market,” stated Brandon Boddy, AgraFlora Executive Chairman and CEO. “We’re also thrilled to see the efficiency that our partners have been able to harvest, process, extract and purify our hemp biomass. This points to our ability to maintain competitive pricing over time.”
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a leading cannabis company building shareholder value through the development of revenue generating operating assets in the global cannabis industry. AgraFlora is focused primarily on the Canadian cannabis industry; the world’s most advanced and regulated legal cannabis market. Flagship Canadian assets include: Edibles & Infusions, a fully automated manufacturing facility in Winnipeg, MB for white-label and consumer branded edible production; Propagation Services Canada, a large-scale commercial greenhouse in Delta, BC focused on reshaping the Canadian flower market with high-potency, low cost cannabis flower, and AAA Heidelberg, a craft focused cannabis producer in London, ON. In addition, AgraFlora’s wholly owned subsidiary Farmako GmbH is scaling towards its goal of being Europe’s leading distributor of medical cannabis. Farmako currently has active distribution operations in Germany and expects to commence active operations in the United Kingdom in 2020. For more information please visit: https://agraflora.com/.
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Forward-looking Information Cautionary Statement
Except for statements of historic fact this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan” “expect” “project” “intend” “believe” “anticipate” “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates 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 anticipated in the forward-looking statements including but not limited to delays or uncertainties with regulatory approvals including that of the CSE. There are uncertainties inherent in forward-looking information including factors beyond the Company’s control. There are no assurances that the business plans for AgraFlora Organics described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company’s filings with Canadian securities regulators which are available at www.sedar.com.