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Kaneh Bosm BioTechnology Signs LOI with Organica LLC to Design, Construct, and Provide Cultivation Consultation for their Denver based Cannabis Production Facility
April 02, 2015 8:00 AM EDT | Source: Kaneh Bosm Biotechnology
Vancouver, British Columbia--(Newsfile Corp. - April 2, 2015) - Kaneh Bosm BioTechnolgy Inc. (CSE: KBB) ("Kaneh Bosm" or the"Company"), is very pleased to report that the Company has signed a non-binding LOI with Organica LLC of Denver, Colorado, to design, construct, and provide cultivation consultation for a proposed state of the art Cannabis production facility. Negotiations on the final contract and deliverables timeline will commence at once.
Organica LLC presently has over 150,000 sq ft available between two buildings at their leased property in Denver, Colorado. An initial phase 1 plan calls for the utilization of approximately 30,000 sq ft to encompass a 480 1000W light Cannabis production facility. The proposed design calls for 360 luminaires in flowering production, and 120 luminaires in vegetative and mother growth. This phase 1 plan could produce 540 lbs of premium quality dried Cannabis flowers per quarter, worth an estimated $972,000USD (based on a wholesale off-take agreement at $1800USD/lbs).
Kaneh Bosm will deliver a state of the art production facility capable of consistently producing premium quality Cannabis flowers. The Company will provide Organica the following detailed plans for the construction of the facility:
| a. | Architectural | |
| b. | Mechanical | |
| c. | Electrical | |
| d. | HVAC | |
| e. | Environmental controls | |
| f. | Automation | |
| g. | Fertigation |
Kaneh Bosm will deliver a complete Cannabis cultivation system from mother plant to finished product, and an operations manual will be developed and documented. This operations manual will form the basis of the proposed training program, and will encompass all aspects and systems of the production facility, including a service and maintenance regime and schedule. Kaneh Bosm personnel will train key Organica staff over a 24 month period to become proficient in operating the facility. Additional ongoing cultivation consulting will be made available should Organica elect, or require continuing operational assistance.
Under the terms of the LOI, Kaneh Bosm will deliver the phase 1 Cannabis production facility design plans for $200,000USD. This figure is exclusive of any and all permitting fees or expenses, and all travel expenses to and from the facility's location. Kaneh Bosm will enter into an 24 month renewable consulting contract to operate the facility under Organica's management, and to train Organica staff. Consulting fees of $25,000USD will be payable monthly, plus all travel expenses. The following performance bonus structure, based on yields, is as follows:
| a. | Target production of 1lb per 1000W fixture | |
| b. | Production level attained of 1.3lbs per 1000W fixture – 5% of net sales | |
| c. | Production level attained of 1.5lbs per 1000W fixture – 7.5% of net sales | |
| d. | Production level attained of 1.75lbs per 1000W fixture – 9% of net sales | |
| e. | Production level attained in excess of 2.0lbs per 1000W fixture – 12% of net sales |
Maya Olson, CEO and President of Organica remarked, “After short-listing a number of service providers, we decided to go with Kaneh Bosm's team of experienced professionals. We are very confident to have them on board to lead this project."
Kaneh Bosm EPC (Engineering Procurement Construction) Cannabis Production Facility Design/Build Division
The Cannabis sector, both medical and commercial, has seen an incredible influx of capital recently. Most of this capital has been dedicated towards the construction of production facility infrastructure. This is a trend that Kaneh Bosm predicted as this sector grows out of its early stages. However, much of this capital is being invested into the sector by those not intimately familiar with Cannabis cultivation, and egregious errors in facility design have been made. Ultimately this will result in poor yields, high operational costs, and low quality product.
Enter Kaneh Bosm's EPC division, a full service engineering, procurement, and construction service, which strives to become the premier production infrastructure solution provider for Cannabis entrepreneurs.
The principles at Kaneh Bosm EPC collectively have spent many decades in the Cannabis business. This dynamic team has exceptional hands on experience which translates into an unparalleled depth of knowledge. This experience translates into an intimate understanding that success or failure in the Marijuana business begins and ends with a properly designed production facility.
Utilizing Kaneh Bosm's depth of experience in facility design and construction we are able to offer state of the art facilities which will minimize costs and optimize production levels and quality. As part of our service offering, we will train operators, provide ongoing maintenance, and even provide ongoing cultivation consulting. There is a reason BC Bud is internationallyrecognized for its quality and potency, in part Kaneh Bosm's team grew it! Get that experience working for you in your facility today.
Interested parties should contact info@kanehbosmbiotech.com.
On behalf of the Board of Directors of Kaneh Bosm BioTechnology Inc.
"Michael Martinz"
Michael Martinz
President, Director
"Rudy de Jonge"
Rudy de Jonge
CEO, Director
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
This news release includes certain statements that may be deemed “forward-looking statements" including design and consulting fees and assumes a formal agreement will be achieved. The use of any of the words “anticipate", “continue", “estimate", “expect", “may", “will", “would", “project", “should", “believe" and similar expressions are intended to identify forward-looking statements. 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. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.