Mr. Bin Huang reports
SPEAKEASY CANNABIS CLUB LTD. PROVIDES OUTDOOR OPERATION UPDATE
Speakeasy Cannabis Club Ltd. is providing its shareholders with an update on the progress made to date with its outdoor operations.
Since receiving the amendment to its licence to include the outdoor area in early April, Speakeasy has been hard at work making preparations for the 2020 grow season. To date, Speakeasy has created over 90,000 clones and is thrilled to report that the outdoor planting has begun. Founder Marc Geen stated: "This has been a dream come true, many years in the making. A lifetime of farming has taught me that very few things go exactly according to plan and this year is no exception. We find ourselves ahead of schedule at this point, not something I'm accustomed to. Huge credit is due to our amazing crew of hard-working men and women whose enthusiasm, devotion and commitment has brought us to where we are today."
Although the company has received more rain this spring than normal, temperatures have been above average, the plants have responded very well to the transition from indoor to outdoor life and are growing vigorously. With the ideal climate in Rock Creek for outdoor cannabis cultivation, combined with our genetics which are perfectly suited to this area, we expect a bumper crop this season. Crews are working seven days a week, and planting is expected to continue through most of June.
The company's internal projections remain at approximately 70,000 kilograms of total harvest, 22,000 kilograms of flower and 48,000 kilograms of biomass. Upon receipt of appropriate amendments to its current licence, the company intends to sell flower as a finished smokable product, made into prerolls and used in extractions for concentrates. Bulk biomass will be extracted on site and made into distillate for bulk sale and in-house value-added products.
With sales in the legal Canadian cannabis market steadily increasing due to many factors, Speakeasy finds itself in just the right place at just the right time. Speakeasy's low cost of production makes it competitive, not only within the Canadian legal market, but compared with unregulated market as well. Recent announcements from the B.C. provincial government suggest movement toward a farm gate model that would allow sales directly from LPs to the public and the ability to have dispensaries on production sites. Chief executive officer Bin Huang stated: "The company has had the customers' wants and needs in mind from the very beginning, and although it seems like a basic concept, it's a concept that has been missing in this industry. Speakeasy has been designed from the ground up to be able to provide our customers the products they want at a price they can afford."
Everyone has been challenged this year with COVID-19 at the very least making everything more difficult, and Speakeasy feels very fortunate it has made it through this situation so far with no cases affecting its crew and no significant effect on its operation. Protocols have been implemented to protect the company's team and ensure work continues on schedule, and the company is happy to report that everything is moving along well. Mr. Geen stated: "The stage is set for Speakeasy to enter the market this fall in a big way, and it's time for us to show what we can do. Our indoor harvests have been 25 per cent higher than internal projections and of excellent quality. We expect similar results from our outdoor harvest this fall. The pressure is on us and we welcome the challenge."
Speakeasy also announces the issuance of 635,944 common shares in the capital of the company in settlement of bona fide debts owed to arm's-length creditors in the amount of $228,940. Additionally, the company will issue 600,167 common shares in settlement of a bona fide debt owed to a non-arm's-length creditor in the amount of $216,060. The common shares will be subject to restrictions on resale in accordance with applicable securities laws. These restrictions will expire four months plus a day from the date of issuance. The shares-for-debt transaction is subject to final acceptance by the Canadian Securities Exchange.
In addition, the company issued 50,000 common shares to an officer of the company in satisfaction of the company achieving certain milestones. These common shares are subject to restrictions on resale in accordance with applicable securities laws, which restrictions will expire four months plus a day from the date of issuance. The issuance of these shares is subject to final acceptance by the Canadian Securities Exchange.
About Speakeasy Cannabis Club Ltd.
Speakeasy holds a cultivation, processing and sales licence, issued by Health Canada under the Cannabis Act. Speakeasy owns 290 acres of land in Rock Creek, B.C., and leverages three generations of farming experience in British Columbia, as well as its favourable location to grow and process high-quality cannabis products at low cost. Speakeasy cultivates small-batch, high-quality craft cannabis in its 10,000-square-foot indoor facility and has completed the development of its licensed 60-acre outdoor field. The company expects to complete planting its outdoor cultivation area during second quarter 2020 and to produce approximately 70,000 kilograms of outdoor, sun-grown cannabis in 2020.
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