VANCOUVER, British Columbia, July 26, 2019 (GLOBE NEWSWIRE) -- Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), is pleased to provide operational and corporate updates for its operating entities in the United States, Puerto Rico and Colombia.
- Chemesis’ 19.9% stake in GSRX Industries continues to be advantageous, as it brings access to GSRX’s dispensary and retail cannabis network. GSRX has steadily increased revenues and continues to grow its dispensary network throughout Puerto Rico, California, Tennessee. This investment is a part of the Companys' retail expansion strategy and will continue to explore additional opportunities to expand its retail footprint.
- Rapid Dose continues to work with Chemesis in its efforts to commercialize its QuickstripTM Oral Thin Strips in Puerto Rico, California and Michigan.
- The Association for the Promotion of Cannabis Cultivation (“Association”) which was formed by La Finca Interacviva Med (“La Finca”), is working in Colombia with farming communities and large networks to bring education, and opportunity through cannabis cultivation. The Association is on track and expects to extended its sowing prospects to an additional 10,000 acres in the next three years.
- The operations team in California has currently processed over 3,000 lbs of trim in the month of July, and continues to ramp up production at its extraction facilities.
- In addition, the Company will continue its efforts to increase its THC infused product portfolio with a focus on beverages, edibles and topicals in Calendar 2019.
- The Company is on track to fulfill its recently announced a partnership with Happy Tea to manufacture and distribute 3 SKU’s which will be expanding to 9 SKU’s as the brand develops new offerings. The Company received a $4,000,000 USD minimum purchase order to manufacture and distribute these products.
- The Company is continuing efforts to plant its first 13 acres of hemp in Michigan under the previously announced Cultivation license.
- The Company’s distribution asset, Desert Zen continues to operate and provide services for third-party and in-house brands. The team is expanding its reach to additional dispensaries in central & southern California.
- Chemesis’ Arizona CBD manufacturing facility is operational and is continuing to provide third-party manufacturing services and continues to work towards GMP certification.
- The Company continues to work closely with PR ONE to meet the previously announced $6,000,000 USD annual minimum purchase order.
- Natural Ventures has increased its previously announced cultivation area to yield in excess of 9,000 lbs per year. This expansion allows Natural Ventures to fulfill the previously announced agreements with third-party brands.
- Natural Ventures has completed the previously announced LED lighting upgrade in partnership with VividGro. This allows the Company to conduct cultivation operations with greater efficiency and reduced energy costs.
- Natural Ventures operations have not been affected by recent unrest and protest in the area, and is working with authorities to ensure the Company is in compliance and does not experience any delays in production.
- La Finca is on track to increase its land package by 10,000 acres within the next three years. To accomplish this, the Company continues to increase its seed stock to ensure it is able to significantly increase the planted acreage.
- La Finca has commenced Agronomic Evaluations in three of the twelve subregions defined by the ICA (Ministry of Agriculture). This is a necessary step as a prerequisite for obtaining commercial cultivar certification per seed type on each of the 12 subregions. Within six months La Finca expects to have completed all requirements in order to start its propagation plan. The PEAS are being conducted jointly with Universidad Nacional and closely supervised by ICA.
- La Finca’s plan remains on track for both the extraction and cosmetics manufacturing lab. The facilities are being constructed under GMP and EU GMP standards in preparation for future exports to International markets. La Finca’s facilities are strategically located next to Bogotá’s international airport, considered a major hub for international flights connecting the América’s and Europe as well as the Caribbean.
- La Finca is working closely with regulators and is on track to obtain THC cultivation and manufacturing of THC derivatives licenses. This allows Chemesis to partake in one of the fastest growing medical Cannabis markets in the world as a potential supplier of CBD and THC raw materials and finished products.
“The Company continues to execute on long term growth targets by building its cultivation, manufacturing, extraction, and brands in the areas that it currently operates,” said CEO of Chemesis, Edgar Montero. “As Chemesis further integrates it operations, it will look for additional operational efficiencies to decrease lead times and op-expenses, while increasing quality. Chemesis and its operational entities are in constant communication with regulatory authorities to ensure the Company is consistently in compliance with all rules and regulations in the industry.”
Chemesis remains in a stable financial position with access to $32,625,000 in drawdown equity facilities.
On Behalf of The Board of Directors
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated U.S. Multi-State operator with International operations in Puerto Rico and Colombia.
The Company focuses on prudent capital allocation to ensure it maintains a first mover advantage as it enters new markets and is committed to differentiate itself by deploying resources in markets with major opportunities. The Company operates a portfolio of brands which cater to a wide community of cannabis consumers, with focus on quality and consistency.
Chemesis has facilities in both Puerto Rico and California, and is in the process of constructing a GMP certified facility in Colombia. Chemesis’ Puerto Rico operations are licensed to operate 100,000 ft2 of cultivation, and 35,000 ft2 of manufacturing floor space. The Company is positioned to win additional licenses in highly competitive merit-based US states, and will expand its footprint to ensure it maintains a first mover advantage.
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Forward-Looking Information: This news release contains "forward-looking information" within the meaning of applicable securities laws relating to statements regarding the Company's business, products and future of the Company’s business, its product offerings and plans for sales and marketing, including finalizing an acquisition in Colombia. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company's products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release
Source: Chemesis International Inc.
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