Mr. Brad Eckenweiler reports
LIFESTYLE DELIVERY SYSTEMS INC. ANNOUNCES THAT CSPA GROUP INC. HAS RECEIVED AN LOI FOR ONE THOUSAND LITERS OF EXTRACTION PER MONTH
Lifestyle Delivery Systems Inc.'s affiliate, CSPA Group Inc., has received a letter of intent to purchase 1,000 litres per month of extracted distillate from cannabis oil.
The distillate produced under the LOI will not be in direct competition with any of the CSPA's products and will allow CSPA to gradually build up its production volume to the required 1,000 litres per month.
In order to accommodate the production level required by the recent orders, the Adelanto facility is currently in the process of increasing its extraction capabilities to over 800 litres of extracted material per month. These equipment modifications are expected to be completed in the next three weeks. To accommodate the volume requirements anticipated under the LOI, the company ordered additional equipment for installation within the Adelanto facility. In addition to equipment modifications at the Adelanto facility, the company plans to also expand the current square footage of the facility by approximately 2,400 square feet. CSPA Group intends to increase its production capability to over 3,000 litres of extracted material per month.
Brad Eckenweiler, the chief executive officer of Lifestyle, stated: "These equipment and facility modifications are required to fulfill current orders, as well as anticipated future orders for extracted cannabis material from licensed white label manufacturers and wholesale market distributors. This LOI at wholesale prices represents between $6[-million] and $7-million in revenue per month for CSPA Group." The company believes that it is uniquely positioned in the market to be a significant wholesale/white label provider. The company has the necessary extraction expertise and, with increased production capabilities, will be able to supply those wholesale or white label customers that are not in direct competition with the company. The company will continue to update its shareholders on its progress as information becomes available.
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