Alliance One International Announces Production Expansion Of Its Canadian Cannabis Subsidiary, Launch of New Brand
May 21, 2018, 06:45 ET
MORRISVILLE, N.C., May 21, 2018 /PRNewswire/ -- Alliance One International, Inc. (NYSE: AOI) today announced that its Canadian Prince Edward Island-based indirect subsidiary, Canada's Island Garden, will undergo a significant expansion to support the growth of its Canadian cannabis line. This state-of-the-art expansion will increase Canada's Island Garden's production capacity of medicinal cannabis, and recreational cannabis as and when sales for the recreational adult market are legalized.
Phase 1 of the expansion, which includes a 166,000-square-foot greenhouse and 54,000-square-foot warehouse, is a $27 million (CAD$35M) investment. The warehouse is being constructed to also accommodate Phase 2 of the expansion, which would add an additional 90,000 square feet of greenhouse space. Phase 1 will increase the facility's annual production capacity from 1,200 kilograms to 18,000 kilograms and is expected to be complete in spring 2019. Assuming completion of Phase 2, Canada's Island Garden would have a total annual production capacity in excess of 35,000 kilograms.
Both the Phase 1 and Phase 2 expansions are designed to feature the latest technological advancements in horticulture and cannabis production to allow for the production of a premium-quality and sustainable product for consumers in Canada, optimized to create comprehensive transparency and traceability, from plant to final product, while also including security protections to maintain proper control of the facility.
Canada's Island Garden also unveiled a new FIGR brand, which reflects the scientific rigor and decades of agronomic excellence for which it is known. Since the acquisition of 75% of Canada's Island Garden by Canadian Cultivated Products, a wholly owned indirect subsidiary of Alliance One, the Canadian companies have been working on a new naming and branding concept. Canadian Cultivated Products will be rebranded to FIGR Cannabis, Canada's Island Garden to FIGR East and Goldleaf Pharm, a sister company in Simcoe, Ontario, to FIGR Norfolk.
FIGR products are intended become available to the public in Canada as soon as sales in the recreational adult market are legalized. Sales to medical patients in Canada will remain under the current branding of Canada's Island Garden.
About Alliance One International, Inc.
Alliance One International is an agricultural company that delivers value-added products and services to businesses and customers, and is a trusted provider of responsibly sourced, independently verified, sustainable and traceable products and ingredients.
About Canada's Island Garden
Based in Charlottetown, Prince Edward Island, Canada's Island Garden is Prince Edward Island's only federally licensed producer of cannabis. In January 2018, Canada's Island Garden announced a supply agreement with the Province of Prince Edward Island to provide a safe, high-quality supply of cannabis to Islanders. For more information, visit www.canadasislandgarden.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. Such statements include, but are not limited to, statements about future plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based on the current beliefs and expectations of management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results may differ materially from those currently anticipated expected or projected. The following factors, among others, could cause actual results to differ from those expressed or implied by the forward-looking statements: the impact of regulation and litigation and risks and uncertainties associated with the expansion of the FIGR brand, including the risk of obtaining anticipated regulatory approvals in Canada, as well as the anticipation of enactment of Canadian legislation legalizing the production and sale of cannabis for adult recreational use, delays in the completion of the construction of the facilities, including due to unforeseen conditions, such as adverse weather, and unanticipated variations in design during the construction of facilities that may affect ultimate annual production capacity. Additional factors that could cause Alliance One's results to differ materially from those expressed or implied by these forward-looking statements can be found in Alliance One's most recent Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the period ended December 31, 2017 and the other Alliance One filings with the Securities and Exchange Commission (the "SEC") which are available at the SEC's Internet site (http://www.sec.gov).
SOURCE Alliance One International, Inc.
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