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Cdn Imperial Venture target gets Calif. pot licences

2019-10-01 11:58 ET - News Release

Ms. Jacqueline Tucker reports


Canadian Imperial Venture Corp. reverse takeover target Ikanik Farms Inc. has received all of the necessary licences required to begin construction of its cannabis camp in Adelanto, Calif. Ikanik expects to commence the first phase of this facility's buildout within 45 days.

Once complete, the Adelanto camp will significantly enhance Ikanik's ability to serve key verticals, such as cultivation, extraction and distribution, in California's multibillion-dollar legal cannabis market. The company expects to complete phase 1 of Adelanto camp's construction by January, 2020.

The Adelanto base camp

Situated on six acres of land in the northwest part of Adelanto, this site is aptly located due to its logistical proximity to I-15 and major metro markets within Southern California. Phase 1 for base camp's buildout will provide Ikanik with 22,000 square feet of cultivation space (approximately 8,000 pounds of dried flower production capacity per year), an extraction lab and distribution. Phase 2 of construction is anticipated to provide an additional 40,000 square feet of greenhouse cannabis cultivation capabilities. Commencement of phase 2 will be announced at a later date.

"Our base camp aims to set a new standard for vertically integrated cannabis operations in California, the world's pre-eminent market for legal cannabis," commented Brian Baca, chief executive officer of Ikanik Farms. "We are excited to better serve cannabis consumers across California with our gold-standard approach to providing quality cannabis consistently."

The company was awarded a Type 7 volatile extraction licence and will use butane (BHO) extraction methods, creating an assorted finished product offering, including: sugars, shatter, badder, sauce, diamonds and live resin. Ikanik's "additive-free" live resin extracts will support the connoisseur vape cart line, targeted for the first quarter of 2020. Additionally, the facility's space supports expansion into non-volatile extraction, providing third party manufacturers' distillate for finished goods. Ikanik's distribution platform will support both vertical and third party distribution, boasting 19,000 cubic feet of climate-controlled finished product storage, with 6,500 square feet of dry storage and production space.

The finished 57,000-square-foot facility will reflect a fiscally advantageous rate of 0.38 cent per foot and is inclusive of a purchase option.

About Ikanik Farms Inc.

Ikanik Farms is creating a dynamic portfolio of award-winning cannabis lifestyle brands, deep rooted in action sports and entertainment, unified with passion. Ikanik's leadership brings decades of expertise in R&D (research and development), cultivation, retail, branding and corporate finance, with the ambition to build the nation's most iconic, vertically integrated, seed-to-sale, multinational cannabis operator. Ikanik's operations are currently located in California and Colombia.

The company previously announced that it had entered into a business combination agreement with Ikanik, whereby the company has agreed to acquire all of the issued and outstanding securities of Ikanik and the business of Ikanik by way of a three-cornered amalgamation. The transaction will result in a reverse takeover of the company by the securityholders of Ikanik.

Completion of the transaction is subject to a number of conditions, including, but not limited to: the requisite shareholder approvals; the acceptance by the TSX Venture Exchange of the voluntary delisting of the common shares of the company; and the acceptance by the Canadian Securities Exchange of the listing of the resulting issuer's subordinate voting shares. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or listing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the company should be considered highly speculative.

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