July 26, 2017 07:04 ET | Source: ABcann Medicinals
OTTAWA, July 26, 2017 (GLOBE NEWSWIRE) -- ABcann Global Corporation (TSX-V:ABCN) (Frankfurt:23Q) (OTCQB:ABCCF) (the “Company”) is pleased to provide an update on the Company's construction and expansion timelines for its Vanluven and Kimmett facilities, both located in Napanee, Ontario.
ABcann confirms that plans to commence construction at the Company's Kimmett facility in Q3 2017 remain on track, and the previously announced plans for a 71,000 square foot Phase 1 plan have been expanded to 100,000 square feet. In addition to the Kimmet construction plans, ABcann has initiated immediate expansion and construction at its current production facility at Vanluven to double production capacity and service the Company's growing patient base on an expedited timeline.
ABcann's current cash position is approximately $43 million, which the Company expects will be sufficient to complete both the Phase 1 100,000 square foot construction at Kimmett and the expansion at Vanluven.
"ABcann's strong cash position from its go public transaction, subsequent warrant exercises and recently announced equity financing for $2.25 per share has positioned the Company to aggressively expand our production capacity at both Vanluven and Kimmett," said ABcann CEO and director, Aaron Keay. "The imminent expansion plans and decision to expand our Phase 1 construction plans at Kimmett are in line with ABcann's corporate strategy to take advantage of the current domestic demand for a high quality standardized pesticide free product, in addition to becoming a strong competitor in a number of the emerging markets internationally."
The Kimmett facility will be constructed on a65 acre property (http://www.abcannglobal.com/Kimmet-Facility.php) that is wholly-owned by the Company and located very close to ABcann's existing Vanluven production facility in Napanee. Our existing acreage provides ABcann the opportunity to continue expansion postPhase 1 construction of up to 1,200,000 square feet of production space. Additional updates and timelines with respect to the Kimmett and Vanluven development plans are as follows:
- First cultivation from the Kimmett facility is expected in Q4 2018.
- Kimmett reaching full production capacity is expected in Q1 2019.
- First cultivation from the expansion areas at Vanluven is expected in Q1 2018.
- Bird Construction Inc. will act as the General Contractor for both the Kimmett and Vanluven projects (see "About Bird", below).
- NORR Engineering has been engaged to act as project engineer (see "About NORR", below).
"ABcann has moved methodically through each stage of our growth since first obtaining our license in 2014. Providing a high quality standardized pesticide free product to our patients remains our number one priority as we initiate our largest expansion plans to date,” said founder and director, Ken Clement. "With a proprietary growing technique that is repeatable and consistent, we are in a great position to deploy our capital and production knowledge on a massive scale."
Since commencing trading on May 4, 2017, ABcann has received approximately $7.0 million additional dollars through the exercise of warrants.
Bird Construction Inc. (“Bird”) is a national general contractor with deep roots in Eastern Canada. Its national reach provides its Eastern Canadian team an unprecedented experience base while still remaining competitive in local markets.
At Bird, the values of Safety, Teamwork, Integrity, People, Professionalism, and Stewardship are the underpinnings of success. With more than 96 years of experience in the construction industry, Bird's unwavering commitment to service delivery, planning and cost-efficient construction strategies has led to many loyal partnerships. As a leading general contractor in Canada, Bird turns ideas into reality through exceptional client service and value creation. Bird's resumé includes pre-construction and construction services with a long list of new and repeat clients.
Bird has also become a key design-build and equity member of many public-private partnership projects. With its broad market reach, Bird's clients include leading firms in the commercial, institutional, retail, high-rise residential, industrial, mining, energy, defense construction and civil sectors. Since opening its doors in 1920, Bird has undergone substantial growth, with its employee base nearing 2,000 staff across the country. Bird’s success covers most delivery models including Alternative Finance Projects (AFP), design-build, construction management and conventional fixed price contracts. For more information about Bird, see its website at: www.bird.ca.
Visit our web site at: www.bird.ca
NORR was founded in Toronto in 1938 by John B. Parkin who had a design vision of timeless clarity and honesty of expression in architecture. Today, in its 80th year, it continues to pursue that vision with 700 staff in 21 global offices in Canada, USA, UAE, UK and India. NORR is a Canadian, privately held company owned by its employees.
With over 200 staff members, NORR's Toronto office provides fully integrated Functional Programming, Planning, Architecture, Interior Design, Structural, Mechanical, Electrical Engineering as well as Project Management. NORR has received countless industry awards for its work across 20 different client sectors.
Similarly, NORR’s integrated A/E Ottawa office – which is becoming one of the largest in the city – is entrusted with some of the most important local assignments. This is because of its complement of over forty, highly experienced, locally based staff.
NORR’s strengths lie within its people. As a privately held, integrated multi-disciplinary consulting firm with a long history of working together, NORR exceeds expectations for all of its clients. Its staff takes pride in this record. Part of its success is due to its approach to projects. NORR ensures the best of its people are dedicated. It leads all of its projects with senior staff, and has a large pool of resources to ensure it can deliver to its clients' expectations.
About ABcann Global Corporation (TSX.V: ABCN):
ABcann was one of the first companies to obtain a production license under the Marijuana for Medical Purposes Regulations, which it received on March 21, 2014. It obtained a sales license on December 31, 2015. ABcann’s flagship facility, in Napanee, Ontario, contains proprietary plant-growing technology, including environmentally-controlled chambers capable of monitoring and regulating all variables in the growing process. This approach and the systems in place allow ABcann to produce organically grown and pesticide-free, high-yielding plants, which, in turn, can generate high-quality products that are consistent from batch to batch. ABcann is able to control environmental and nutrient demands, tailor-made for a particular strain of cannabis, without the variation that is typical when producing large quantities in less-controlled, larger rooms and greenhouse-type structures. ABcann’s modular approach to systems technology eliminates scale-up risk and allows ABcann to locate anywhere in the world and maintain consistency and quality of product. ABcann is pursuing opportunities in Germany, Australia and other jurisdictions as well as exploring the development of multiple delivery vehicles.
ON BEHALF OF THE BOARD OF DIRECTORS
CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which are statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this news release include statements relating to: (i) the scope and expected timing of the Company’s proposed expansions at its Vanluven and Kimmett facilities; (ii) the expected amount and timing of production therefrom; (iii) the expected service providers in connection with the expansions; and (iv) the Company’s ability to deploy its capital and production knowledge on a massive scale. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements, including: (i) changes to applicable legislation or regulatory requirements; (ii) construction delays; (iii) difficulties sourcing necessary production material in the time expected or at all; (iv) changes to the anticipated costs of the expansions that require the Company to obtain additional capital; and (v) other factors beyond the Company's control. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. Readers are urged to consider these factors, and the more extensive risk factors included in the Company’s filing statement dated March 31, 2017 which is available on SEDAR, carefully in evaluating the forward-looking statements contained in this news release and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements in this news release are made as of the date hereof and the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. Statements in this news release regarding Bird and NORR have been provided by Bird and NORR, respectively, and have not been independently verified by the Company.