VERNON, British Columbia, Oct. 18, 2018 /PRNewswire/ -- SunPure Industries Ltd., under its wholly owned subsidiary SunPure Cannabis Co. (www.sunpure.ca) ("SunPure Industries"), and Big Red Nose Productions ("BRN") are pleased to announce that they have entered into the signing of a Letter of Intent (LOI) Agreement to form a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.
The joint venture will be structured on a semi-exclusive basis for a period of five (5) years to produce a line of cannabis-infused non-alcoholic beverages for Canadian distribution, following regulatory approval. The new business development venture will combine the proven beverage experience of BRN's successful Colorado-leading cola experience and a recognized innovator in the fast-growing consumable cannabis sector market, which is expected to be legally permissible in Canada in 2019.
SunPure's President and CEO Mike Mueller stated, "Canada is breaking new ground in the recreational cannabis sector and SunPure has a unique opportunity to participate in this exciting and rapidly expanding consumer segment. This new venture is consistent with our growth strategy and our commitment to bringing stakeholder value to our shareholders and joint partnerships. While we remain a late-stage ACMPR-applicant and greenhouse business at our core, we are excited to create a separate new venture with a trusted partner that will offer Canadian consumers new experiences with quality, reliable and consistent non-alcoholic, cannabis-infused beverages. We look forward to partnering with BRN, who brings a wealth of knowledge and experience in the Colorado cannabis beverage sector to our potential revenue streams in British Columbia and, as we expand, across Canada."
"Big Red Nose Productions is pleased to work towards a definitive agreement and, with a respect for law and regulations, establish a relationship built on trust, where together we will develop responsible, high-quality cannabis-infused beverages for the consumable cannabis market in Canada. The goal of BRN has always been to create cannabis drinks that are new and uniquely crafted to the cannabis market. We shall market these drinks in view of the cannabis connoisseur mindset and not in the fashion taken on by generic drinks or alcohol. Our message will be clear - be yourself and don't judge others. Our goal is to create drinks and marketing campaigns driven to the rise of a market that's truly unique," said Robert Morrissey, president and CEO of Big Red Nose Productions. In 2009, Robert Morrissey was the sole founder and creator behind Keef Cola's original branding, recipe and launch into the cannabis beverage market of Colorado.
Closing of the transaction, which is targeted to occur before Oct. 30, 2018, is subject to the satisfaction of certain conditions, including execution and delivery of various transaction agreements, including governance documents, R & D, packing, licensing, distribution and supply agreements.
About SunPure Cannabis Co.
SunPure Cannabis Co. is a start-up cannabis cultivation company under the Access to Cannabis for Medical Purposes Regulations (ACMPR), located in Armstrong, British Columbia. SunPure currently owns a 40-acre parcel land package. There is currently a 1,500-square-foot agricultural building with concrete, with dedicated electrical service to the property, with an Artesian well to tap into the Spallumcheen underground aquifer that overlies the valley bedrock, with an estimated yield of Artesian Well of 200 to 600 gallons/per/minute (gpm). SunPure is founder-funded to date, which includes land acquisition, all site construction costs and is debt-free. SunPure is now in the "Detailed Review Stage" in preparation for receipt of our "Confirmation of Readiness" letter. SunPure is set to break ground on construction of its Phase One 12,500-square-foot automated greenhouse and is currently retrofitting the existing processing facility on site. Targeting a 30-acre outdoor seeding of industrial hemp Q2 2019; Option for Spring 2019 to seed our land with industrial hemp and utilizing third-party cannabidiol (CBD) extractors, formulators and processors. SunPure is focusing on growing our export division through supply contracts, offtake agreements and increasing revenue streams by developing our hemp and extraction divisions.
The SunPure brand will feature craft cannabis strains ideally suited for Canada's emerging medical and upcoming recreational marijuana markets. Our comprehensive quality control program will ensure safe and reliable products that are responsibly grown and delivered with unparalleled customer service.
About Big Red Nose Productions
In 2009, Robert Morrissey was the sole founder and creator behind Keef Cola's original branding, recipe and launch into the cannabis beverage market of Colorado. Le Canna Royale is designed to be the legacy brand of cannabis drinks. Many, if not all, of its features go against the flow of traditional cannabis sodas, non-alcoholic beers and wines. These beverage flavours are designed to drink alone or in combination with top spirits in a social shared experienced.
Le Canna Royale Market
As seen in the Colorado and California legal cannabis markets, beverages are on the rise. However, the cannabis drink market is becoming fully saturated with colas. It is BRN's official stance that the drink market needs diversity. Le Canna Royale fits the niche market of 750ml bottles designed to drink as a socially shared experience. Our ability to not be locked into mainstream corporate price wars will allow for BRN to capitalize on its individuality as a product. With little to no competition at this time in the socially shared cannabis drink market, BRN estimates that Le Canna Royale will become the measuring point of this market.
For further information about SunPure Industries, please visit the Company's website at www.sunpure.ca and to view a video of the Armstrong facility;
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This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected including, but not limited to completion of planned improvements at both the Canadian and U.S. sites on schedule and on budget, the availability of financing needed to complete the Company's planned improvements on commercially reasonable terms, the availability of contractors and materials, planned occupancy by the tenant-growers, commencement of operations, weather and other natural factors that may affect agriculture-based businesses, the ability to mitigate the risk of loss through appropriate insurance policies, and the risks presented by federal statutes that may contradict local and state legislation respecting legalized marijuana. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
This news release does not constitute an offer of securities for sale in the United States. These securities have not and will not be registered under United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to a U.S. Person unless so registered, or an exemption from registration is relied upon.
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