12:34:11 EDT Fri 19 Aug 2022
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Heritage Cannabis Holdings Corp
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Close 2021-02-10 C$ 0.20
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Sugarbud to sell cannabis 2.0 products to CannMart

2021-02-11 08:34 ET - News Release

See News Release (C-SUGR) Sugarbud Craft Growers Corp

Mr. Chris Moulson of Sugarbud reports


Sugarbud Craft Growers Corp. has entered into a national product purchase and supply agreement for the company's cannabis 2.0 products with Namaste Technlogies Inc.'s CannMart Inc.

Sugarbud is also pleased to announce that, as part of the previously announced contract manufacturing agreement with Heritage Cannabis Holdings Corp., it has completed the final development and qualification of its additive-free, 100 per cent cannabis full-spectrum vape cartridges.

Supply agreement

Under the terms of the supply agreement, CannMart will have the ability to purchase Sugarbud branded cannabis extract products for subsequent national distribution and sale to provincially/territorially authorized distributors/retailers under their own sales licence and Sugarbud will process and package the Sugarbud branded craft cannabis extract products on behalf of CannMart. The agreement with CannMart is subject to customary regulatory, licensing and new product notification requirements.

"Our entry into the adult-use recreational cannabis 2.0 market in Canada is a major catalyst for the company and we couldn't be more excited to be partnering with CannMart to accelerate our plans to bring our expanded Sugarbud Craft cannabis collection to our target markets and consumers in Canada," stated Sugarbud chief executive officer John Kondrosky.

"Our partnership with CannMart is a very significant step forward in the rapid evolution of our company and just another example of how we continue to focus and execute against our strategic priorities and hit the milestones we have laid out for the company. Together with our previously launched dried cannabis platform of products, our partnership with CannMart both expands and accelerates our penetration into our core focus markets," concluded Mr. Kondrosky.

"We are pleased to welcome Sugarbud to our portfolio as many companies are seeing added value in Namaste's distribution footprint," said Meni Morim, chief executive officer of Namaste Technologies, CannMart's parent company. "We look forward to working closely with our new partner to expand their reach to Canadian cannabis consumers."

Sugarbud now expects to be in a position to begin shipping its Sugarbud branded cannabis extract products to provincially/territorially authorized distributors/retailers by the end of Q1 2021.

The company's agreement with CannMart also covers the time between today's announcement and when Sugarbud expects to receive authorization from Health Canada to sell its cannabis extract products directly to provincially/territorially authorized distributors/retailers and registered patients.

The company expects approval for its own amended sales licence permitting the direct sale of cannabis extracts in early Q3 of 2021.

Manufacturing agreement

Under the terms of the previously announced manufacturing agreement, Heritage will continue to provide Sugarbud with extraction, formulation and production services for the continuing supply of its prefilled vape cartridges utilizing proprietary, additive-free 100 per cent cannabis formulations. Additional details are available in the company's press release dated Oct. 15, 2019.

"Our high-quality, 100 per cent cannabis vape products are a natural and logical extension of our inhaled product strategy. Sugarbud vape products leverage and embody the quality, consistency, flavour profiles and aromas found in our exceptional craft cannabis flower," stated Mr. Kondrosky.

New cannabis derivative products and formats such as vape cartridges and pens are a rapidly growing segment of the Canadian adult-use recreational market and Sugarbud expects that its high-quality, additive-free 100 per cent cannabis vape products will become a significant catalyst for future growth.

"We are confident that our partnership with Heritage will equip Sugarbud to deliver high-quality products to consumers with the safety, integrity and exceptional outcomes they demand," concluded Mr. Kondrosky.

About Sugarbud Craft Growers Corp.

Sugarbud is an Alberta-based, consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. The company's vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers.

About CannMart Inc.

CannMart is a wholly owned subsidiary of Namaste Technologies, a leading platform for cannabis products, accessories and education.

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