Maricann Provides Corporate Update on Operations Including Recreational Cannabis Supply Contract
TORONTO, July 05, 2018 (GLOBE NEWSWIRE) — Maricann Group Inc. (CSE:MARI) (FRANKFURT:75M) (OTCQB:MRRCF) (“Maricann” or the “Company”) is pleased to announce that the Company has entered into a supply agreement with the Alberta Gaming, Liquor & Cannabis Commission (AGLC) to provide the Alberta market with cannabis products.
The Company is in dialogue with several other provinces for both 2018 and 2019 and will make announcements as permitted if and when such agreements are executed. While there are no assurances that additional supply agreements will be executed, ongoing discussions with certain provinces have confirmed a high regard for the Company’s capabilities and competitiveness consistent with that of much larger industry players.
Langton Facility Expansion
Construction on the expansion of the Company’s facility at 138 8th Concession Road, Langton, Ontario (the “Langton Facility’) is continuing to progress. By mid-November, 2018 (subject to receipt of the applicable licenses from Health Canada), Maricann expects to be capable of producing 706kg of dried cannabis per week in Phase 1 of the expansion of its Langton Facility. By April 2019, Maricann expects to be capable of producing 2,023kg of dried cannabis per week assuming building permits, long lead items, such as HVAC equipment are delivered on time, at its Langton Facility.
Germany Operations Update
Maricann has completed the retrofit to 4,600 sqm (approximately 49,000 sq. ft.) of its Ebersbach facility in Germany for narcotics import and wholesale. Site inspections by European Medicines Agency authorities are now complete, with no significant findings noted. The Company will provide a further update if and when final approval from regulatory authorities is achieved. This certification, if obtained, will permit Maricann to import its own and others’ EMA-GMP approved products for distribution in Germany and the rest of Europe, where legal, maintaining profit margin, that in most cases totals 50% of wholesale price.
Malta and VesiSorb Update
As anticipated, Maricann has received confirmation from Malta Enterprise (the country’s official economic development agency) in the form of a Letter of Intent, to move ahead with licensing of finished goods production facilities for medical cannabis. Malta comprises an integral part of Maricann’s long-term development strategy, with finished goods manufacturing, including its patented VesiSorb CBD and THC softgels to take place in Malta. VesiFact produces the world’s first dosage controlled soft gel capsules with enhanced bio-availability and rapid onset.
Maricann has now manufactured consistent THC distillate at its Langton Ontario facilities, a building block for future recreational market products, and consistent finished dose pharmaceutical products. Maricann utilized Thin Film Distillation to process the material.
We continue to execute and develop all aspects of the Company according to our plan, achieving forward momentum for our shareholders, with a focus on maintaining baskets of margin by developing business units and additional capabilities as a company for a fraction of the expense seen in the sector. Governmental regulatory agencies continue to endorse our company by entrusting us as one of a handful of companies with medical cannabis licensure and product supply.
Ben Ward, Mariccan Group CEO
We are proud of our progress to date and will continue to drive shareholder value, over the long term by strategically segmenting our business by geography, strategic investments, quality and scientifically differentiated products, developed by proficient and qualified experts.
Special Committee Review
Further to the work of the Special Committee of the board of directors (the “Special Committee”), the Company has broadened and strengthened its policy on trading blackouts and is preparing to adopt enhanced approval processes for trading by Board members and senior management.
Consistent with the high level of strategic activity in the sector, the Company under the direction of the Special Committee has discussed, and continues to discuss, various potential strategic transactions, including both business combinations, joint ventures and significant supply arrangements with various domestic and international parties. The Company intends to continue to monitor industry developments and may have further discussions in respect of potential strategic transactions. At this time there are no specific transactions for the Company to disclose.
About Maricann Group Inc.
Maricann is a vertically integrated producer and distributor of marijuana for medical purposes. The company was founded in 2013 and is based in Burlington, Ontario, Canada and Munich, Germany, with production facilities in Langton, Ontario where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada. The Company also has production operations in Dresden, Saxony, Germany and Regensdorf, Switzerland. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft. (87,515 sq. m) build-out and will continue to pursue new opportunities in Europe.