VANCOUVER, BC / ACCESSWIRE / September 17, 2019 / StillCanna Inc. (CSE:STIL) (OTC:SCNNF) (FRA: 484) (“STIL” or the “Company”) would like to provide an update to its shareholders and prospective investors as the Company continues to implement its business plan.
The Company is pleased to report that it remains on track to complete its extraction facility in Romania in addition to its agricultural and extraction initiatives in Poland. The Company remains well capitalized not only to deliver on its current business plan but also to evaluate other strategic acquisitions.
Stillcanna’s Origin extraction facility in Romania, operated by Premium Extraction Services (PES), a joint venture with UK-based Dragonfly Biosciences (www.dragonflybiosciences.com), is poised to become Europe’s leading producer of THC-free CBD distillate honey oil, which remains rich in cannabinoids and terpenes.
The PES joint venture has decided to immediately double the capacity of its existing chromatography separation equipment as well as further upgrades to allow for full industrial scale chromatography in early 2020. This will enable the facility to custom make its oils to any mix a customer requires without the loss of cannabinoids or terpenes. The facility will be able to deliver a pure undiluted product for a true ‘entourage effect’ without the requirement to supplement with CBD isolate.
Dragonfly already leads the way in zero THC products and sets the benchmark for others to follow. Demand for this quality oil is very strong, but few extraction companies are able to deliver these specifications in quality or bulk at market acceptable prices.
“We see a substantial opportunity in increasing the supply to the market of Dragonfly’s organic GMP and Pharma quality oil,” says COO Hannah Skingle. “Our brand is already one of the most trusted in the marketplace and this further investment in technology will keep Dragonfly at the forefront of quality and safety. PES is set to be the market leader of the highest quality product to coincide with the expected tightening of quality controls from government and authorities to crack down on the inferior product. We are proud to be a partner with a company like Stillcanna that has such a high standard and commitment to quality”
“We see this cutting-edge joint venture facility currently as the sole extraction plant of scale that could extract similar quality products for third parties, thereby generating a substantial revenue stream. The market price and demand for quality CBD oil rich in cannabinoids and terpenes remain high. We have made the financial commitment that will allow the Origin facility to produce this product in volume,” added Stillcanna CEO Jason Dussault. “Origin is currently on target to receive its final licenses this year and begin fulfilling its extraction contract with Dragonfly Biosciences. With the building license already obtained and all equipment tested and installed the Company expects the facility to be operational in Q4/19. The operation of the facility remains under the oversight of Dr. Bucur Ilie (General Manager) and Ms. Georgiana Carsin (Production Manager).”
Nexus, the Company’s second extraction facility located in Poland, is proceeding on schedule with all equipment on site. The facilities’ industrial scale falling film distillation systems have been successfully tested and are capable of up to 600 liters of ethanol distillation per hour. The Two Stage Molecular Distillation Unit, which will create a high purity CBD oil, has also been successfully tested. Nexus is on track to begin manufacturing CBD and delivering on the Company’s supply contracts in Q4/19. The facility is designed to produce 1,320 kilograms of isolate per month once fully operational. The Company has plans to increase its production by deploying pelletizing technology over the coming quarters, which uses compressed flower through the extraction system allowing for a greater yield of cannabinoids per cycle.
Working with its Polish subsidiary Olimax, Stillcanna successfully planted 1,500 hectares of hemp and has actively been harvesting for the past six weeks. The hemp is comprised of multiple parcels of land in northern, central and southern Poland. Three of the proprietary harvesters are currently working the fields and are anticipated to complete the harvest on or ahead of schedule. Utilizing the Company’s proprietary storage technology, the biomass is being dried for extraction. The Company intends to blend all of its harvested biomass together to create a homogeneous mixture to process through its extraction facility.
Stillcanna has signed two flagship agreements, one with Dragonfly Biosciences to be their exclusive extractor and producer of CBD products estimated to be worth C$48 million over three years, utilizing the Romanian-based Origin facility. This contract is in good standing and our working relationship and commitment to the project with Dragonfly has never been stronger.
Stillcanna signed a C$36 million dollar supply agreement with Biosciences of California to deliver CBD isolate starting in Q4/19. This agreement remains in good standing and we are currently working with Biosciences on shipping and handling logistics, as we get closer to fulfillment.
Stillcanna also has signed a biomass agreement for approximately C$1 million dollars with Sequoya Cannabis (http://sequoya.ca). This agreement remains in good standing and Sequoya is excited about the possibility of receiving pelletized biomass.
The Company remains active in the sales and marketing of its bulk products in Europe and sees no slowdown in demand. Additionally, prices for quality CBD products in Europe have proven to remain higher than those in North America.
About Stillcanna Inc.
StillCanna Inc. (CSE:STIL) (OTC:SCNNF) (FRA: 484) (“STIL” or the “Company”) is a Canadian early-stage life sciences company focused on large scale CBD extraction in Europe. The Company believes its proprietary intellectual property allows it to extract CBD at a lower cost. The Company has signed an initial extraction contract in Europe to be the exclusive extractor for Dragonfly Biosciences LLC, a United Kingdom-based supplier of CBD. The Company also recently completed the acquisition of Olimax NT SP. Z .O.O, which is expected to increase the Company’s market share in the European CBD industry.
Cautionary Note Regarding Forward Looking Statements:
This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including that the Company’s Romanian facility was built to become Europe’s leading producer of THC free CBD distillate. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should” or “would” occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including that Company’s Romanian facility was built to become Europe’s leading producer of THC free CBD distillate. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, that the Company’s Polish facility may not yield over 1230 kilos CBD isolate. Readers are cautioned not to place undue reliance on forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
SOURCE StillCanna Inc.