MIAMI, July 20, 2020 /PRNewswire/ - Cansortium Inc. (CSE:TIUM.U) (OTCQB: CNTMF) ("Cansortium" or the "Company"), a vertically integrated cannabis company with operations in Florida, Texas, Michigan and Pennsylvania, today announced the signing of a Management Agreement (the "Management Agreement") with Freedom Town Holdings, LLC ("FT"), a multi-state operator that specializes in the production of high end cannabis flower, products, genetics and extraction, pursuant to which FT will provide management and operational consulting services for the Company's newly secured Florida cultivation and production facility in Zolfo Springs, Florida. The Management Agreement, which has a term of 7 years and compensates FT based on the level of facility production, will leverage FT's cultivation and processing expertise to expand Cansortium's cultivation in its home market of Florida, help accelerate Cansortium's opening of new dispensaries across the state, and ensure a consistent supply of high quality dry flower and extract products to Cansortium's growing patient base.
The 26,000 square foot Zolfo Springs facility is expected to commence operations during the first quarter of 2021 following approval from the Florida Department of Health and will complement the Company's existing Florida cultivation and production, including that of its principal facility in Tampa. The capital costs of the initial buildout of the Zolfo Springs facility will be funded by FT and repaid from the profit generated by the facility. The second phase buildout, which will be funded by cash flow from the facility, is anticipated to occur in 2022.
Neal Hochberg, Executive Chairman of the Board, commented, "We are very excited to partner with FT on this opportunity to expand our cultivation and production footprint in our home state of Florida. We believe the production from this facility will allow us to expand our product offerings, greatly enhancing our customer experience."
About Cansortium Inc.
Headquartered in Miami, Florida, and operating under the Fluent™ brand, Cansortium is focused on being the highest quality cannabis company in the State of Florida driven by unrelenting commitment to operational excellence from seed to sale. Cansortium has developed strong proficiencies in each of cultivation, processing, retail, and distribution activities, the result of successfully operating in the highly regulated cannabis industry. In addition to Florida, Cansortium is seeking to create significant shareholder value in the attractive markets of Texas, Michigan and Pennsylvania, where the Company has secured licenses and established operations.
Cansortium Inc.'s common shares and warrants trade on the CSE under the symbol "TIUM.U" and "TIUM.WT.U", respectively, and on the OTCQB Venture Market under the symbol (OTCQB: CNTMF). Investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on www.otcmarkets.com.
Certain information in this news release, may constitute forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in the public documents of the Company available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Cansortium Inc