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Speakeasy Cannabis Club Ltd
Symbol EASY
Shares Issued 86,916,638
Close 2019-11-08 C$ 0.48
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Speakeasy receives Health Canada cannabis licence

2019-11-12 07:13 ET - News Release

Mr. Marc Geen reports


Speakeasy Cannabis Club Ltd. has received Health Canada's coveted licence for cultivation, processing and medical sales. The company, situated on 290 acres of fertile land in the Okanagan's renowned Golden Mile, has demonstrated adherence to the industry's rigorous compliance standards, and can now grow and provide its high-quality, small-batch cannabis to the burgeoning recreational and medical markets.

With the receipt of the licences, the company has immediately begun cultivation of cannabis in its 10,000-square-foot, purpose-built, state-of-the-art facility. The company has acquired an extensive library of unique genetics that will be used as starting material for the cultivation of cannabis at the facility.

Speakeasy's outdoor cultivation site has also been completed and stands ready to receive these genetics for the 2020 growing season. Speakeasy plans to submit its evidence package for the outdoor field and amend its licence to allow outdoor cultivation on its 60-acre field.

"Receiving our licence at long last, is a dream come true for all of us in the Speakeasy family. The support we have received from shareholders, employees, family and friends has been overwhelming and I appreciate you all more than I can say," says Marc Geen, founder of Speakeasy. "When it comes to producing phenomenal craft cannabis, farms will always be superior to factories and culture will always speak louder than corporations. Real people recognize authenticity and Speakeasy intends to lead by example, sharing the story of our people through the excellence of our product."

With the anticipation of receiving its outdoor licence, Speakeasy is positioned to become one of the largest cannabis producers in Canada with extremely low cost per gram outdoor grown flower and extremely high-quality small batch indoor flower.

Speakeasy recently completed the transformation of a 60-acre orchard into a custom-built outdoor cannabis cultivation environment. The fertile agricultural land is expected to enable the farm to produce up to approximately 70,000 kilograms of cannabis flower and the company plans to double the output to up to approximately 150,000 kg, pending approval of its outdoor cultivation licence.

Construction commenced in the fall of 2017 on the 80,000-square-foot Speakeasy campus in anticipation of demand for Speakeasy's craft cannabis flower and value-added products. Buildings two and three were completed to lock-up in the second quarter of 2019 and building four, another 26,600-square-foot facility commenced in the spring of 2019 and is also at the lock-up stage of its development. The anticipated use of building four is the processing of sun-grown outdoor flower and biomass for extraction. Speakeasy has accumulated an impressive library of unique genetics from sources outside existing licence holders, empowering the company to develop new strains, unique to Speakeasy, for both indoor and outdoor cultivation.

Speakeasy founders and team members are long-standing advocates for the value of community and harnessing the power of combined expertise through successful farming co-operatives. Speakeasy now plans to apply the same values for cannabis farming. Speakeasy's innovative business model is designed to support industry-leading talent through shared knowledge, resources and passion, with a commitment to maintaining exceptional quality standards and developing unique cannabis strains. The company empowers experienced growers and geneticists to operate independently with the freedom to develop each cultivar to perfection.

Other corporate updates

The company has changed its auditors to Davidson and Company.

In connection with the receipt of the licences, and pursuant to a performance agreement entered into on March 28, 2018, the company will be issuing 10 million common shares to Marc Geen of Rock Creek, B.C. As a result of the issuance, Mr. Geen will own 14,494,239 of common shares, representing approximately 14.96 per cent of the outstanding common shares of the company. The company has also reserved for issuance up to an additional two million common shares, which may be issued pursuant to a finder's agreement dated July 4, 2017, and amended on Nov. 28, 2017.

The company's board of directors has also approved the grant of options to 10 employees for up to 440,000 common shares of the company with an exercise price of 70 cents per share. The options will expire five years from the date of grant.

About Speakeasy Cannabis Club Ltd.

Speakeasy Cannabis Club is a licensed cultivator and processing company. Speakeasy leverages three generations of farming experience in B.C. to produce high-quality, small-batch cannabis products. The company currently owns 290 acres of land in Rock Creek, B.C. Speakeasy cultivates small batch, high-quality cannabis in its 10,000-square-foot indoor facility and has recently transformed a 60-acre orchard into an outdoor cultivation area with the intention, upon receipt of the amendment to its current licence to include the outdoor cultivation area, to produce up to approximately 70,000 kg of outdoor, sun-grown flower and biomass per year.

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