Canary RX Inc. Signs Definitive Agreement with Thrive Cannabis on New Joint Venture Cultivation Opportunity
TORONTO, June 3, 2020 /PRNewswire/ - TARGET GROUP INC. (OTCQB: CBDY) ("Target" or the "Company"), is pleased to announce that its wholly owned subsidiary, Canary RX Inc. ("Canary RX") has entered into an agreement to form a Joint Venture Partnership ("JV") with THRIVE CANNABIS INC. ("Thrive") in Norfolk County, ON for the production of premium craft cannabis.
The terms of the 5 year definitive agreement have Target and Thrive each with a 50% ownership of the JV. Target, via its wholly owned subsidiary Canary RX Inc. will permit Thrive to produce premium craft grown cannabis in 7 of its 8, 2300 square foot growing rooms within its existing 44,000 sq. ft. licenced cultivation facility in Norfolk County, ON. In addition, Thrive will maintain and supervise the staff on their proprietary methods of cultivation that it currently utilizes from its production in Canada. Operations within the facility are expected to begin immediately.
This partnership is anticipated to increase the initial production yields within the Canary RX facility and will encompass stronger cultivation management led by an already proven team. Once operational, the JV will begin producing premium craft cannabis for both Target and Thrive, to supply existing distribution networks in Canada. The JV will, additionally, utilize formulations from both parties in Canada as well as manufacture proprietary branded products that both parties plan to distribute throughout their respective supply chains.
"Moving forward with Thrive Cannabis in the form of this JV allows us to execute our growth strategy more quickly and efficiently. Their knowledge in maximising the growth of cannabis in our Canary Rx facility and development of genetics is next to none. We are very excited with the Thrive partnership and experience their team brings" said Tony Zarcone, Target Group's CEO.
"This is a world class asset to take on under our management that adds substantial capacity for the cultivation of premium indoor flower. We could not be happier to be partnering with Canary RX for the mutual benefit of our organizations and shareholders," said Geoff Hoover, Thrive CEO.
The JV will also look to manufacture white label products for other licensed producers throughout Canada, and it is currently in talks with several potential customers to produce other value-added cannabis products such as tinctures, topicals, pre-rolls, food products and formulated bulk THC/CBD oil.
About Canary RX Inc.
Canary RX Inc. ("Canary") is a Licensed Producer under the Cannabis Act. Situated in Ontario's Garden, Norfolk County, Canary lies nestled amongst the shores of Lake Erie in a vibrant, agricultural community. Our 44,000 sq. ft. facility is engineered to meet strict quality standards and equipped with the latest environmental control technology. The production space includes eight separate flower rooms, projected to produce 3,600kg cannabis per year. Canary's talented team will cultivate premium, organic cannabis, while aligning with distinguished, veteran brands to bring the highest quality product to market. www.canaryrx.com
About Thrive Cannabis Inc.
Thrive Cannabis is a privately held, vertically integrated cultivator and processor of premium and ultra-premium craft cannabis and cannabis concentrates, founded in 2018, with production facilities in Simcoe, Ontario. Thrive holds production, sales and outdoor cultivation licenses from Health Canada. Thrive Cannabis is currently developing premium products for the Canadian recreational market that will commence distribution in 2020. To learn more, visit us at thrivecannabis.ca
About Target Group Inc. (CBDY) - Target Group Inc. ("Target Group" or the "Company") is a progressive, diversified, and vertically integrated cannabis acquisition company. Target Group is curating an iconic brand portfolio, leveraging product diversification, innovation, and operational expertise to solidify long-term growth and stability. The Company owns and operates Canary RX Inc, a Health Canada licensed producer under The Cannabis Act (Bill C-45), and CannaKorp, makers of the pod-based Wisp™ Vapor technology. Target Group is expanding its global operations to build an international network of manufacturing, distribution, production, and sales operations. www.targetgroupinc.ca
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SOURCE Canary RX Inc.
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