CX Industries Signs Exclusive Agreement with Ignite International Brands to Supply Premium Cannabis and CBD Products
/NOT FOR DISSEMINATION IN THE UNITED STATES/
Ignite-branded offerings to be produced and distributed by CX Industries and WeedMD for purchase in Canadian retail markets
TORONTO, July 24, 2019 /CNW/ - WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) ("WeedMD" or the "Company"), a federally-licensed producer and distributor of medical-grade cannabis, its wholly-owned subsidiary CX Industries ("CX Industries" or "CX") and Ignite International Brands, Ltd. (CSE:BILZ) ("Ignite") are pleased to announce they have entered into an exclusive licensing agreement for an initial term of two years with an option for a third year.
Widely recognized for its engaging marketing content, the Ignite brand is established internationally and recognized for its premium suite of cannabis and CBD products. The initial product launch will include a variety of THC and CBD products for the Canadian market.
"We truly believe quality flower is at the heart of every Ignite product we market. It's at the core of everything we make and represents an unwavering dedication to deliver premium cannabis and CBD products worldwide and now especially here in Canada," said Jim McCormick, President of Ignite. "Ignite represents cannabis and CBD at its finest and CX Industries and WeedMD are the perfect Canadian partners who share the same drive for quality."
"We welcome the Ignite family to our portfolio of branded products and the ever-expanding reach of our suite of premium cannabis offerings. Canadians are anticipating the arrival of vape and concentrate categories as another segment where quality-produced cannabis will be the driving factor for consumers," said Keith Merker, CEO of WeedMD. "With CX Industries focused on high-grade concentrates, and WeedMD cultivating mass amounts of trichome-rich outdoor cannabis, we are establishing a full-service business-to-business offering and creating partnerships that will shape the extracts market both on price and quality."
CX, which specializes in extraction, tolling, licensing and innovative third-party product formulations from WeedMD's fully-licensed Aylmer, Ontario facility, will be the extractor, packager and distributor of Ignite-branded vape products and cartridges in Canada. CX Industries is expected to have the capacity to process over 200,000 kilograms of biomass in 2020 and expects to begin processing roughly 20,000 kilograms of biomass delivered from WeedMD's first harvest in Q4 2019. Read the CX launch press release here.
About Ignite International Brands, Ltd.
Ignite is a CSE-listed vertically-integrated company operating in the cannabis industry. Ignite intends to expand its business, which currently includes branding, marketing, licensing, sales and distribution, across additional legal jurisdictions in the United States and into international jurisdictions, across multiple product applications. Ignite intends to effect this expansion through brand leverage, product development, targeted marketing and strategic supply chain partnerships in each of the target jurisdictions. As CEO and Chairman, Dan Bilzerian takes an active role and is deeply involved in the development of global strategic initiatives intended to establish Ignite as a global brand leader in the cannabis and CBD space.
About CX Industries
CX Industries is a wholly-owned subsidiary of WeedMD Inc. CX is operates out of the Company's fully-licensed 26,000 sq. ft. Aylmer, Ontario production facility which specializes in cannabis extraction and processing. The facility is located on four acres of expandable property owned by WeedMD. At peak production in 2020, CX is expected to produce more than 200,000 kgs of biomass annually.
For more information, access CX Industries' website here.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of cannabis products for both the medical and adult-use markets. The Company owns and operates two facilities: a 158-acre state-of-the-art greenhouse and outdoor facility located in Strathroy, Ontario and a 26,000 sq. ft. extraction and processing facility in Aylmer, Ontario operating as CX Industries. The Company currently has 136,000 square feet of licensed indoor and greenhouse production space and is expected to have a total footprint of more than 550,000 square feet of indoor and greenhouse production online in 2019. Additionally, 27 acres or 1,176,000 sq. ft. of outdoor cultivation is licensed and fully operational with first harvest expected in October 2019. WeedMD has a multi-channeled distribution strategy that includes selling directly to medical patients, strategic relationships across the seniors' market and supply agreements with Shoppers Drug Mart as well as six provincial distribution agencies where WeedMD's adult-use brand Color Cannabis is sold.
Cautionary Statement on Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation which are based upon WeedMD's and Ignite's current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen, or by discussions of strategy.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of WeedMD and Ignite to implement their respective business strategies; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD and Ignite do not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD or Ignite to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD's Annual Information Form dated June 21, 2019 (the "AIF") and Ignite's Listing Statement dated May 30, 2019, and other disclosure documents of WeedMD and Ignite filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com, The risk factors and other factors noted in the above noted filings and other disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.
NEITHER THE TSX VENTURE EXCHANGE OR THE CANADIAN SECURITIES EXCHANGE AND THEIR RESPECTIVE REGULATION SERVICES PROVIDERS (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE AND THE CANADIAN SECURITIES EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE Ignite International Brands, Ltd.
Released July 24, 2019