- Harvested approximately 400 lbs of various grades and strains of cannabis
- Received a California state processing licence in addition to the existing five cultivation, extraction and distribution licenses it acquired from the Qlora Group in 2019
- Harvested 40 lbs of high-grade cannabis testing at approximately 20% THC in Reno
TORONTO, Feb. 19, 2020 — North Bud Farms Inc. (CSE: NBUD) (OTCQB: NOBDF) (“NORTHBUD” or the “Company“) is pleased to provide shareholders with an update on our U.S. operations, Bonfire Brands USA (“Bonfireâ€).
Salinas, California
To date, the Company has harvested approximately 400 lbs of various
grades and strains of cannabis. As anticipated, the winter season yields
were moderate with large flowers testing at approximately 19% THC. The
Company has sold approximately 50% of the harvest in wholesale
quantities. The Company expects its next harvest in 60 days and is
looking for an incremental increase in quality and yield. The Company
will provide revenue updates at the end of the quarter.
Licensing
The Company is pleased to announce it has received a California state
processing licence in addition to the existing five cultivation,
extraction and distribution licenses it acquired from the Qlora Group in
2019. This new licence will allow the Company to process, package and
distribute cannabis and cannabis products acquired from other licensed
producers in the state on a pay per use basis.
“Maximizing revenue streams in California where established and
highly regulated retail and distribution models exist has required new
entrants to operate within all verticals,†said Justin Braune,
President, Bonfire Brands USA. “This strategy requires significant
capital expenditures and has historically proven very difficult to
execute. By leveraging our strategic infrastructure into agreements with
established operators, Bonfire expects to increase revenue streams and
achieve profitability quicker with lower capital expenditure risks.â€
“I am very pleased by the significant progress made by our California
team in their short time since we completed the acquisition of the
Qlora Group,†said Sean Homuth, CEO of NORTHBUD. “In an industry that
has seen companies struggle to manage high infrastructure costs while
navigating ever evolving distribution landscapes, the anticipated
revenue from this model will be very crucial for the Company as we move
towards achieving EBITDA positive operations.â€
Reno, Nevada
To date, the Company has harvested 40 lbs of high-grade cannabis
testing at approximately 20% THC. This product is being sold under the
NORTHBUD brand to select retailers in Reno and Las Vegas and represents
the first revenue in Nevada for Bonfire Brands. The Company will update
the market further at the end of the quarter.
The Company has begun construction of two additional cultivation and
processing rooms which will increase annual revenue capacity by 40%.
With recent cost cutting measures implemented post acquisition, the
Company believes it is on track to bring the Nevada operation to cash
flow positive in the first quarter of 2020.
The Company has entered into a third-party service agreement with LTH
Logistics (“LTHâ€), a licensed third-party distribution and delivery
company. As per the terms of the agreement, LTH will provide these
third-party services under the distribution licence of Nevada Botanical
Sciences with revenue generated being split 60/40 in favor of Bonfire
Brands USA.
“Similar to California, many Nevada licensees have been operating
across all verticals,†said Justin Braune, President, Bonfire Brands
USA. “Bonfire has chosen to reduce execution risk and minimize capital
expenditures by working with established operators who seek to benefit
from our strategic infrastructure, which will allow the company will
expedite its progression towards EBITDA positive operations.â€
Corporate Name Change
As approved at our recent annual shareholder meeting, the Company
will officially change its name to Bonfire Holdings Inc. The Company has
reserved and will begin trading under the ticker symbol BURN in the
near future. The Company believes this better represents the vision and
structure of the Company moving forward. The Company owns brands such
as NORTHBUD, California Bud Co., Live For The Day (LFTD) and Trichomic
and manufactures and distributes Happiest Hour beverages in the state of
Nevada.
About North Bud Farms Inc.
North Bud Farms Inc., through its U.S. subsidiary Bonfire Brands USA,
has acquired cannabis production facilities in California and in
Nevada. The Salinas, California 11-acre farm is actively cultivating
cannabis in its 60,000 sq. ft. of licensed greenhouse production space.
The Reno, Nevada property is located on 3.2 acres of land which was
acquired through the acquisition of Nevada Botanical Science, Inc. a
world class cannabis production, research and development facility with
5,000 sq. ft. of indoor cultivation which holds medical and adult use
licenses for cultivation, extraction and distribution. Through its
wholly owned Canadian subsidiary, GrowPros MMP Inc., the Company is
pursuing a licence under The Cannabis Act, to cultivate in its
state-of-the-art purpose-built cannabis production facility located on
135 acres of Agricultural Land in Low, Quebec, Canada.
For more information visit: www.northbud.com
Neither the CSE nor its Regulation Services Provider (as that term is
defined in the policies of the CSE) accepts responsibility for the
adequacy or accuracy of this release.
Forward-looking statements
Certain statements
included in this press release constitute forward-looking information or
statements (collectively, “forward-looking statements”), including but
not limited to those identified by the expressions “anticipate”,
“believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “should” and
similar expressions to the extent they relate to the Company or its
management. Forward-looking statements are not historical facts but
reflect current expectations regarding future results or events. This
press release contains forward-looking statements that include, but are
not limited to, statements relating to the Company’s California, Nevada
operations and its corporate name change to Bonfire Holdings Inc. These
forward-looking statements are based on current expectations and various
estimates, factors and assumptions and involve known and unknown risks,
uncertainties and other factors. Such risks and uncertainties include,
among others, the risk factors included in the Company’s final long form
prospectus dated August 21, 2018, which is available under the
Company’s SEDAR profile at www.sedar.com.
FOR ADDITIONAL INFORMATION, PLEASE CONTACT:
North Bud Farms Inc.
Edward Miller
VP, IR & Communications
Office: (855) 628-3420 ext. 3
[email protected]