Sugarbud To Enter Cannabis Concentrate Market, Announces Agreement with Embark Delta Inc. for the Development and Supply of Solventless Extract Products
CALGARY, Alberta, March 08, 2021 (GLOBE NEWSWIRE) -- Sugarbud Craft Growers Corp. (TSXV:SUGR, SUGR.WT, SUGR.WS, SUGR.DB) ("Sugarbud" or the "Company") is pleased to announce that it has entered into a contract manufacturing services agreement (the "Agreement") with Embark Delta Inc. ("Embark"), a wholly owned subsidiary of Embark Health Inc., for the development and supply of the Company’s solventless cannabis extract products.
Under the terms of the Agreement, Embark will provide Sugarbud with extraction, formulation and production services for the initial development and ongoing supply of the Company’s solventless extraction products. The first product to be developed and launched under this agreement will be a 0.5g Pressed Flower Rosin. The Agreement with Embark is subject to customary regulatory, licensing and new product notification requirements.
"We are very pleased to be collaborating with the very talented and experienced team over at Embark to develop and launch our first solventless cannabis extract product," stated Sugarbud CEO John Kondrosky. "Rather than deconstructing, distilling and then reconstructing the primary essence of the incoming dried flower, solventless extraction places a premium on maintaining the naturally occurring terpenes, flavors, aromas and cannabinoids throughout the entire process, ensuring that consumers will fully experience the essence of the original dried flower as nature intended. Sugarbud’s solventless concentrates are another example of a natural and logical extension of our inhaled product strategy that will further leverage and embody the quality, consistency, flavor profiles and aromas found in our exceptional craft cannabis flower," concluded Mr. Kondrosky.
New cannabis derivative products and formats such as vape cartridges and concentrates are a rapidly growing segment of the Canadian adult-use recreational market and Sugarbud expects that its rapidly expanding Cannabis 2.0 portfolio high-quality products will become a significant catalyst for future growth.
"We are confident that our partnership with Embark will equip Sugarbud to deliver high quality products to consumers with the safety, integrity and exceptional outcomes they demand and deserve," concluded Mr. Kondrosky.
"Embark works with master cultivators and suppliers of unwavering quality standards. Our solventless extraction team’s experience and expertise is a blend of tradition, artistry and technological innovation,” stated Dr. Luc C. Duchesne, Embark’s CEO. “We are pleased to support Sugarbud with our best-in-class, pure, craft flower rosin for the adult-use market in Canada," continued Dr. Duchesne.
Sugarbud now expects to launch its concentrate products nationally in early Q2 2021 as part of its previously announced Supply Agreement with CannMart Inc.
Sugarbud is an Alberta-based, consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. Our 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.
The Sugarbud Craft Cannabis Collection offers consumers "Hand-Crafted Cannabis for a New Era". The Company is proudly Albertan and is proud to share Western Canada's long tradition of exceptional craft cannabis with the most discerning of enthusiasts. Sugarbud strives to define the intersection of product craftsmanship, quality, and value for consumers in the Canadian craft cannabis space.
Chief Executive Officer
Sugarbud Craft Growers Corp.
Phone: (604) 499-7847
Investor Relations Contact
Chief Financial Officer
Sugarbud Craft Growers Corp.
Tel: (778) 388-8700
About Embark Health
Embark Health Inc. is an emerging leader in cannabis extraction; with a focus on the formulation and production of advanced 2.0 products for the contract manufacturing and adult-use markets. Embark continues to be at the forefront of the production of solventless concentrate products; including Bubble Hash, Traditional Pressed Hash, Rosin and Dry Sift. With the acquisition of Embark Nano Inc. (formerly, Axiomm Technologies Ltd.) Embark is also launching a suite of next generation Cannabis 2.0 products. The acquired portfolio of products and formulations support the mass production and distribution of advanced 2.0 products including cannabis-infused beverages, topicals, edibles and water-soluble powders. For more information, please visit www.embarknano.com.
Embark's mandate is to pursue best in class production processes resulting in premium quality commercial and consumer extraction products. Embark is dedicated to unleashing the full potential of the cannabis plant through scientific approaches to extraction and the production of quality products to enhance everyday life. For more information, please visit www.embarkhealthinc.com.
Dr. Luc C. Duchesne
Chief Executive Officer
Embark Health Inc.
Phone: (613) 878 6552
Investor Relations Contact:
Chief Financial Officer
Embark Health Inc.
Phone: (519) 671-6936
Forward Looking and Cautionary Statements
This news release contains forward-looking statements. More particularly, and without limitation, this news release contains statements concerning: Sugarbud's assessment of future plans, operations and cannabis cultivation, including sales, marketing and distribution opportunities; the Company's ability to remain operating in accordance with developing public health efforts to contain COVID-19; product quality; partnerships, including with Embark; the development, production and sale of cannabis extract products, including flower rosin and the timing thereof; future growth, including with respect to Cannabis 2.0 products; and the ability to build shareholder value. When used in this document, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Sugarbud. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Sugarbud believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: currently contemplated expansion and development plans may cease or otherwise change; production of cannabis may be lower than expected, Sugarbud may not obtain the required approvals from Health Canada, including with respect to an amended sales license; demand for Sugarbud's products may be lower than anticipated; results of production and sale activities; results of scientific research; changes in prices and costs of inputs; demand for labour; demand for products; failure of counter-parties to perform contractual obligations; failure to maintain consumer brand recognition and loyalty of customers; reliance on relationships with wholesalers and retailers for distribution of products and failure to maintain strategic business relationships; intense competition, including from illicit sources; uncertainty and continued evolution of markets; product liability litigation; reliance on information technology; infringement on intellectual property; failure to benefit from partnerships; sensitivity of end-customers to increased sales taxes and economic conditions; failure to comply with certain regulations; departure of key management personnel or inability to attract and retain talent; actions and initiatives of federal and provincial governments and changes to government actions, initiatives and policies and the execution and impact thereof; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; risks inherent in the agricultural business, such as insects, plant diseases and similar agricultural risks which can have a significant impact on the size and quality of the harvest of cannabis crops; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by Sugarbud with securities regulatory authorities. In addition, the Company cautions that current global uncertainty with respect to the spread of the COVID-19 virus and its effect on the broader global economy may have a significant negative effect on the Company. While the precise impact of the COVID-19 virus on the Company remain unknown, rapid spread of the COVID-19 virus may have a material adverse effect on global economic activity, and can result in volatility and disruption to global supply chains, operations, mobility of people and the financial markets, which could affect interest rates, credit ratings, credit risk, inflation, business, financial conditions, results of operations and other factors relevant to the Company. Please refer to Sugarbud's most recent annual information form and management's discussion and analysis for additional risk factors relating to Sugarbud, which can be accessed under Sugarbud's profile on www.sedar.com. Except as required by applicable laws, Sugarbud does not undertake any obligation to publicly update or revise any forward-looking statements.
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