Craftport Cannabis Provides Update Regarding Pitt Meadows Facility
Vancouver, British Columbia--(Newsfile Corp. - December 13, 2021) - Craftport Cannabis Corp. (CSE: CFT) ("Craftport" or the "Company") today announced the following regarding the Pitt Meadows facility ("Pitt Meadows"). Pitt Meadows is owned by 1161750 B.C Ltd. ("1161"), which is 51% owned by Craftport.
Termination of Cultivation Agreements
Pitt Meadows had entered into two separate cultivation agreements.
On August 17, 2020, it entered into an agreement with a third party to assist with the cultivation activities associated with an estimated 12,000 square feet of space within area 4 of the Pitt Meadows greenhouse. The agreement had a 4 year term and could be extended for consecutive 2 year periods. The agreement could be terminated by either party with or without any reason, and without any penalty, upon giving 180 days written notice.
On November 23, 2020, it entered into an agreement with another third party to assist with the cultivation activities associated with an estimated 33,600 square feet of space within area 3 of the Pitt Meadows greenhouse. The agreement had a 4 year term and could be extended for consecutive 2 year periods. The agreement could be terminated by either party with or without any reason, and without any penalty, upon giving 180 days written notice.
Except for the above two agreements regarding areas 3 and 4, Pitt Meadows had suspended all operations while management reviewed strategic options for the facility.
Effective December 12, 2021, written notice was provided to both of the parties who entered into the above agreements for areas 3 and 4, that the cultivation agreements would be terminated in 180 days in accordance with the provisions of the agreements.
Listing Pitt Meadows For Sale
The Company previously announced its intention to utilize an asset-light model to focus on the premium craft cannabis Canadian recreational market. The Company continues its effort to secure the funding necessary to fully execute on this business plan. Given Pitt Meadows no longer fits within the Company's new business plan, a listing agreement has been executed with B.C. Farm & Ranch Realty Corp. to sell the Pitt Meadows facility. Proceeds from the sale are expected to be used to repay debt and outstanding accounts payables, as well as for working capital purposes to support the asset-light model.
About Craftport Cannabis
Craftport Cannabis is a Canadian cannabis licensed producer based in British Columbia. The Company intends to focus on the Canadian premium craft cannabis recreational market by utilizing an asset light model based from it's Peachland facility. It intends to leverage legacy roots and know how in order to introduce unique genetics and strains to the Canadian market.
For more information about Craftport Cannabis, please refer to information available under the Company's profile on SEDAR at www.sedar.com and the CSE website.
Chief Executive Officer
Craftport Cannabis Corp.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this release.
This news release contains forward-looking statements pertaining to various risks and uncertainties regarding future events. The use of any of the words "anticipate", "continue", "intends", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. Forward-looking statements in this news release include, but are not limited to: the Company's ability to sell the Pitt Meadows facility, the Company's ability to secure financing, and the Company's ability to execute on its business plan. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Actual results could differ materially from those currently anticipated due to a number of factors and risks including the risk factors discussed in this news release and in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com and on the CSE website. These statements speak only as of the date of this news release. Except as required by law, the Company does not intend to update these forward-looking statements.
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