PALO ALTO, Calif.–(BUSINESS WIRE)–GigCapital, Inc. (NYSE: GIG, GIG.U, GIG.RT, and GIG.WS) (“GigCapital”),
a Technology, Media and Telecom (TMT) Private-to-Public Equity (PPE)
corporation, previously announced that it will hold a special meeting of
stockholders (the “Special Meeting”) on June 5, 2019, at 10:00 a.m.,
local time, at the office of GigCapital, located at 2479 E. Bayshore
Rd., Suite 200, Palo Alto, California 94303, to vote on a proposal to
amend (the “Charter Amendment”) the Company’s amended and restated
certificate of incorporation to extend the date (the “Extension”) by
which the Company has to consummate its business combination with
Kaleyra S.p.A. (“Kaleyra”) for an additional six months, from June 12,
2019 to December 12, 2019 (the “Extended Date”).
GigCapital today announced that if the stockholders approve the Charter
Amendment, GigAcquisitions, LLC (the “Sponsor”) and the other founders
of GigCapital (the “Founders”) collectively have agreed to contribute to
GigCapital as a loan $240,000 for each calendar month, or portion
thereof, that is needed by GigCapital to complete the business
combination with Kaleyra (each, a “Contribution”). The Contributions are
conditional upon the implementation of the Extension. The Contributions
will not occur if the Charter Amendment is not approved or the Extension
is not completed for any reason. The Contributions will be deposited
into the trust account established in connection with GigCapital’s
initial public offering (the “Trust Account”). As a result, the amount
in the Trust Account following a Contribution for redemption of shares
of GigCapital’s common stock issued in its initial public offering
(each, a “Public Share”) that are not redeemed in connection with the
stockholder vote to approve the Extension, will be increased. The amount
of the Contributions will not bear interest and will be repayable by
GigCapital upon consummation of the business combination with Kaleyra.
If the Extension is implemented, the Sponsor and Founders will make the
first Contribution on or before June 12, 2019. GigCapital will announce
by the end of each calendar month whether there will be a subsequent
Contribution made, and any subsequent Contributions will be made on or
before the tenth of a subsequent month. The Sponsor will have the sole
discretion to determine whether to continue extending for additional
months until the Extended Date, and if the Sponsor determines not to
continue extending for additional months, the obligation of the Sponsor
and Founders to make additional Contributions will terminate and
GigCapital will dissolve and liquidate in accordance with its amended
and restated certificate of incorporation.
As previously stated by GigCapital in its proxy statement for the
Special Meeting, the sole purpose of the Charter Amendment is to allow
Kaleyra sufficient time to prepare the required financial statements
needed before GigCapital can seek stockholder approval of the business
combination with Kaleyra. Kalerya has been diligently working to prepare
those financial statements, and GigCapital anticipates being able to
move forward with the consummation of the business combination on the
timeline previously announced when the parties announced the
transaction. Kaleyra has provided GigCapital with the following
unaudited pro forma consolidated financial information for fiscal years
2017 and 2018, and consolidated financial information for its first
fiscal quarter of 2019, all based on U.S. GAAP, as approved by the
Kaleyra board of directors:
|2017 –||Revenues — $77.6 million|
|Adjusted EBITDA — $4.3 million|
|2018 –||Revenues — $98.5 million|
|Adjusted EBITDA — $7.4 million|
|Q1 2019 –||
Revenues — $27.7 million (up more than 35% from Q1 2018 pro forma
revenues of $20.4 million)
Kaleyra is in the process of finalizing its consolidated financial
information for its first fiscal quarter of 2019 based on U.S. GAAP as
one of its final steps of preparing financial statements for inclusion
in the proxy statement being prepared for approval by the GigCapital
stockholders of the business combination, and when completed and filed
as part of that proxy statement, further disclosure will be made
regarding expenses, net income and Adjusted EBITDA for the first fiscal
quarter of 2019.
Reaffirmation of 2019 Outlook
Kaleyra management reaffirms its outlook on U.S. GAAP revenue and
Adjusted EBITDA for the full-year 2019 as previously set forth using
Italian GAAP in the investor presentation related to the business
combination with GigCapital filed with the Securities and Exchange
Commission (SEC) on February 26, 2019. This guidance is subject to the
risks and uncertainties described in the “Forward-Looking Statements”
“We are very pleased to provide this initial presentation of our
financial performance to the public and GigCapital’s stockholders. The
preliminary consolidated and pro forma results that we are reporting
today for fiscal year 2018, which includes strong annual revenue growth
of nearly 30% from the prior fiscal year to approximately $100 million
and accelerating Adjusted EBITDA, as well as growth of approximately 35%
for the first quarter of 2019 from the first quarter year ago to more
than $27 million, demonstrates the strength of our business and
financial model,” said Mr. Dario Calogero, Kaleyra’s Founder and current
Chairman of the Board and Chief Executive Officer. “We believe Kaleyra’s
future is bright. We move in a high growth market space at the
intersection between enterprise interactive services and mobile users,
where our platform is increasingly supporting thousands of enterprises
to smoothly interact with their consumers, using their mobile devices,
taking advantage of our omnichannel communication platform worldwide.
The pending combination with GigCapital will serve as a catalyst for the
next phase of growth within the rapidly expanding Cloud Communications
for Enterprises market. GigCapital’s powerful leadership team of
successful corporate executives with extensive technology public-market
operational and entrepreneurial expertise, along with a deep bench of
industry experts at their disposal, are already helping shape our future
as we prepare to become a publicly traded company. I look forward to
sharing our story with the investment community going forward.”
“I want to congratulate Dario and his team for their swift completion of
the preparation of the U.S. GAAP compliant results. We know this was a
challenging assignment given the many international acquisitions the
company has made in recent years and the stringent reporting
requirements under U.S. GAAP. Their ability to present this preliminary
information to investors in a short time period should give the market
confidence that their team is fully prepared to move forward as a U.S.
GAAP compliant publicly listed company,” said Dr. Avi Katz, Founder,
Executive Chairman of the Board, and Chief Executive Officer of
GigCapital, Inc. and Sole Manager of GigAcquisitions, LLC. “Once this
combination is approved by GigCapital’s stockholders, which we believe
will happen in just a few months, Kaleyra will have a stronger financial
structure to achieve its growth objectives. Furthermore, the combination
is a testament to the GigCapital team’s unique Private-to-Public Equity
(PPE) and Mentor-Investor platforms, which the GigCapital
Group plans to quickly replicate through new PPE enterprises as it looks
to partner with the many late-stage growth technology companies that
have expressed interest in our model to accelerate their path to a U.S.
public listing. We are happy to offer current GigCapital stockholders a
meaningful financial incentive, since we want them to stay as our
stockholders and minimize their redemption so they can continue to
benefit from Kaleyra’s potential long-term fundamental opportunity as we
move closer to consummation of the combination.”
A Current Report on Form 8-K has been filed today with the SEC,
accompanied by this press release, which can be accessed through the
SEC’s website at www.sec.gov.
This communication shall neither constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which the offer, solicitation,
or sale would be unlawful prior to the registration or qualification
under the securities laws of any such jurisdiction.
Additional Information About the Transaction and Where To Find It
Additional information about the proposed business combination with
Kaleyra and related transactions will be described in GigCapital’s
preliminary proxy statement relating to the proposed business
combination and the respective businesses of GigCapital and Kaleyra,
which GigCapital will file with the SEC. The proposed business
combination and related transactions will be submitted to stockholders
of GigCapital for their consideration. GigCapital’s stockholders and
other interested persons are advised to read, once available, the
preliminary proxy statement and any amendments thereto and, once
available, the definitive proxy statement, in connection with
GigCapital’s solicitation of proxies for its special meeting of
stockholders to be held to approve, among other things, the proposed
business combination and related transactions, because these documents
will contain important information about GigCapital, Kaleyra and the
proposed business combination and related transactions. The definitive
proxy statement will be mailed to stockholders of GigCapital as of a
record date to be established for voting on the proposed business
combination and related transactions.
Stockholders may also obtain a copy of the preliminary or definitive
proxy statement, once available, as well as other documents filed with
the SEC by GigCapital, without charge, at the SEC’s website located at www.sec.gov
or by directing a request to Tara McDonough, Vice President and Chief
Financial Officer, GigCapital, Inc., 2479 E. Bayshore Rd., Suite 200
Palo Alto, CA 94303, or by telephone at (650) 276-7040.
Participants in the Solicitation
Kaleyra, GigCapital and their respective directors and executive
officers and other persons may be deemed to be participants in the
solicitations of proxies from GigCapital’s stockholders in respect of
the proposed business combination and related transactions. Information
regarding GigCapital’s directors and executive officers is available in
its Form 10-K filed with the SEC on December 6, 2018. Additional
information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests will be contained in
the preliminary and definitive proxy statements related to the proposed
business combination and related transactions when it becomes available,
and which can be obtained free of charge from the sources indicated
About GigCapital, Inc.
Inc. (NYSE: GIG, GIG.U, GIG.RT, and GIG.WS), is a Private-to-Public
Equity (PPE) company, (also known as a Blank-Check or Special Purpose
Acquisition Company (“SPAC”)), sponsored by GigAcquisitions, LLC, and
sole-managed by GigFounders, LLC (www.gigfoundersglobal.com).
All were founded in 2017 by Dr. Avi Katz. The GigCapital Group companies
are led by an affiliated team of technology industry experts, deploying
a unique Mentor-Investors methodology to partner with exceptional
privately-held and non-U.S. public technology companies of dedicated
solid entrepreneurs. The GigCapital Group companies offer financial,
operational and executive mentoring to U.S. and global private, and
non-U.S. public companies, in order to accelerate their path from
inception and as a privately-held entity into the growth-stage as a
publicly traded company in the U.S. The partnership of the GigCapital
Group with these companies continues through an organic and roll-up
strategy growth post the transition to a public company. For more
information, visit www.gigcapitalglobal.com.
“Private-to-Public Equity (PPE)” and “Mentor-Investor” are trademarks of
GigFounders, LLC, used pursuant to agreement.
Kaleyra is a global group specializing in providing mobile messaging
services for financial institutions and multiple other types of
enterprises of all sizes. Through its proprietary platform, Kaleyra
manages multi-channel integrated communication services on a global
scale, comprising messages, push notifications, e-mail, instant
messaging, voice services and chatbots. Kaleyra’s technology today makes
it possible to manage huge volumes of messages, with some 2 billion
notifications a month. For more information: www.kaleyra.com
Non-GAAP Financial Measure and Related Information
This communication includes reference to adjusted EBITDA, a financial
measure that is not prepared in accordance with U.S. generally accepted
accounting principles (“GAAP”). Adjusted EBITDA is defined as of any
date of calculation, the consolidated pro forma earnings of Kaleyra and
its subsidiaries, before finance income and finance cost (including bank
charges), tax, depreciation and amortization calculated from the audited
consolidated financial statements of such party and its subsidiaries
(prepared in accordance with local GAAP), plus (i) transaction expenses
of Kaleyra and GigCapital, (ii) without duplication of clause (i),
severance or change of control payments, (iii) any expenses related to
company restructuring, (iv) any compensation expenses relating to stock
options, restricted stock units, restricted stock or similar equity
interests as may be issued by the post-combination company or any of its
subsidiaries to their employees and (v) any provision for the write down
of assets. The pro forma earnings of Kaleyra, which is an Italian
company, and its subsidiaries, which include subsidiaries outside of the
U.S., may not be prepared in conformance with Article 11 of Regulation
S-X of the SEC. Adjusted EBITDA is being used to determine whether
conditions have been achieved that would result in the issuance of the
earn-out and the vesting of the Deferred Shares. GigCapital management
believes that this non-GAAP measure of Kaleyra’s financial results will
provide useful information to management and investors regarding certain
financial and business trends relating to Kaleyra’s anticipated
financial condition and results of operations. Investors should not rely
on any single financial measure to evaluate Kaleyra’s anticipated
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws regarding the proposed
transactions with Kaleyra, the Charter Amendment, Extension,
Contributions and GigCapital. Such forward-looking statements include,
but are not limited to, statements regarding the approval of the Charter
Amendment, implementation of the Extension, payment of the
Contributions, closing of the combination and the expectations, hopes,
beliefs, intentions, plans, prospects or strategies regarding the
business combination and future business plans of the Kaleyra and
GigCapital management teams. Any statements contained herein that are
not statements of historical fact may be deemed to be forward-looking
statements. In addition, any statements that refer to projections,
forecasts or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking statements.
The words “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “would” and similar expressions may
identify forward-looking statements, but the absence of these words does
not mean that a statement is not forward-looking. The forward-looking
statements contained in this press release are based on certain
assumptions and analyses made by the management of GigCapital and/or
Kaleyra in light of their respective experience and their perception of
historical trends, current conditions and expected future developments
and their potential effects on Kaleyra and GigCapital as well as other
factors they believe are appropriate in the circumstances. There can be
no assurance that future developments affecting Kaleyra or GigCapital
will be those anticipated. These forward-looking statements involve a
number of risks, uncertainties (some of which are beyond the control of
the parties) or other assumptions that may cause actual results or
performance to be materially different from those expressed or implied
by these forward-looking statements, including that the GigCapital
stockholders will approve the Charter Amendment and the transaction, the
ability of the post-combination company to meet the NYSE listing
standards, and that Kaleyra will have sufficient capital upon the
approval of the transaction to operate as anticipated. Should one or
more of these risks or uncertainties materialize, or should any of the
assumptions being made prove incorrect, actual results may vary in
material respects from those projected in these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
|Years Ended December 31,|
|Revenue – Solutions Infini prior to acquisition||16,919||29,297|
|Revenue – Buc Mobile prior to acquisition||3,650||5,052|
|Total Non-GAAP Revenue||$||98,518||$||77,563|
|Net Income (loss) (1)||$||(7,219||)||$||509|
|Adjustments to net Income (loss):|
|Income tax expense (benefit)||1,341||493|
|Other income, net||(371||)||(334||)|
|Interest expense, net||442||219|
|Foreign currency loss||32||640|
|Depreciation and amortization||1,581||347|
|Loss on equity investments prior to acquisitions||$||1,053||$||36|
|EBITDA for pre-acquisition period of subsidiaries||1,207||1,374|
|Non-cash compensation expense||1,170||550|
|Non-cash stock option expense||6,638||135|
|Acquisition transaction costs||1,537||306|
|Non-GAAP adjusted EBITDA||$||7,411||$||4,275|
(1) Per unaudited US GAAP financial statements as of December 31,
2018 and 2017
Darrow Associates, Inc.
Additional Investor Contact:
MacKenzie Partners, Inc.
+1 (212) 929-5500
Are we there yet? Widespread use of Cryptocurrency with Maria (Masha) Prusakova (Crypto PR Lab) at TCE2019 Prague
Cryptocurrencies are changing the world and most of the intelligent e-commerce/m-commerce startups and SMEs are quickly jumping on board. Whenever this is a long-lasting evolution period towards reaching a decentralized banking system, we will just have to wait and find out. However, the recent move by Facebook with the launch of Lybra is certainly stirring things up.
By now, the European Commission and European Union are knees deep into regulating the cryptocurrency market and conversations are always sparked around money laundering and so on.
Bitcoin has been certainly on a roll, but now all eyes are on the exchanges and the licenses that are granted for brokerage and exchange companies.
Cryptocurrency taxation is also a subject that concerns a growing number of users, traders, and investors. An area that creates a lot of confusion among taxpayers is the application of VAT, or the value-added tax most countries levy on the sales of goods and services.
Generally, purchases and sales of cryptocurrency are not subject to VAT taxation in Europe, which is the birthplace of the value-added tax. Financial regulators and revenue services in most countries often refer to a decision by the Court of Justice of the European Union (ECJ) which ruled in 2015 that services for the exchange of bitcoin with any traditional fiat currency are exempt from VAT.
The widespread use of cryptocurrencies and the outcomes of a cryptocurrency driven society will be discussed at the inaugural PICANTE TECH Conference Europe (TCE2019) by experts of the field.
Among these experts is also Maria (Masha) Prusakova, Co-Founder at Crypto PR Lab, who will join the speakers’ list at TCE2019.
About Maria (Masha) Prusakova
Maria (Masha) Prusakova is a French attorney and a PR specialist working with blockchain startups and crypto conferences. Masha started her journey in crypto in 2014 working on an early bitcoin algorithm trader ExGate with a former Lehman Brothers financier. In 2017, Masha joined M&A PR Studio, consulting ICOs and blockchain startups on public relations. In 2018, she co-founded Crypto PR Lab. Before her entrepreneurial career, she worked as an attorney in M&A for Clifford Chance LLP and Gowling WLG. As a private banker for Ultra High Net Worth individuals, Masha gained experience at UBS, LGT and HSBC private banks in Switzerland and Monaco.
The former right hand of Prime Minister of Kazakhstan at the World Economic Forum, Masha together with Sasha facilitates the participation of individuals and startups at the elite Davos Conference Week.
Masha is also an accomplished snowboarder. As a professional athlete, she represented Russia in the 2006 Winter Olympic Games as the youngest participant in the snowboarding halfpipe event.
Masha holds three Master’s degrees (Sorbonne, UC Berkeley) and speaks 4 languages: Russian, French, German and English.
PICANTE Tech Conference Europe is designed to bring both people and knowledge together and provides the excellent ecosystem of networking and learning opportunities without interruptions with emphasis on comfort and communication. After learning from genuine world-class experts and wayseers, meeting achievers shaping the B2B ecosystem, all attendees will get the chance to grab a drink and relax while networking at the evening social gathering.
Brussels Workshop Explores Challenges and Opportunities in the 4th Industrial Revolution
On July 12, the CEIBS Insights 2019 Europe Forum series made its latest stop in Brussels for a special roundtable workshop on the theme of The 4th Industrial Revolution: Opportunities and Challenges for Europe and China. The event, co-hosted by European economic think tank Bruegel, brought together nearly 100 representatives from CEIBS, the European Commission, the Mission of the People’s Republic of China to the European Union, and the EFMD, among others, for discussions exploring how China and Europe can balance policy and market forces to achieve sustainable technological innovation, how SMEs in both regions can leverage opportunities to expand into overseas markets, and how both sides can work together to improve bilateral cooperation.
Charge d’Affaires ad interim for the Mission of the People’s Republic of China to the European Union Wang Hongjian, a representative of the Commissioner for Internal Market, Industry, Entrepreneurship and SMEs Ms. Elzbieta Bienkowskaand European Commission Deputy Director-General for Implementation, Impact & Sustainable Investment Strategies Mr. Patrick Child delivered keynote speeches at the event.
As CEIBS President and Professor of Management Li Mingjun noted in his welcome address, 2019 is a critical year for the Europe 2020 Strategy, and technological innovation is now crucial for sustaining Europe’s economic growth. As Chinafurther opens its doors to the outside world, he added, EU countries will discover new opportunities to take innovative technology from the lab to the market. “We look forward to establishing a foundation for communication with this forum,” Prof. Li said. “And to building a lasting and stable platform for the integration of innovation resources between China and the EU.”
Bruegel Director Dr. Guntram B. Wolff also welcomed participants to the event with a speech in which he noted the need to reflect together on current opportunities and challenges. He further added that the topic of the forum is important because “[it stands at] the intersection of new digital technologies, artificial intelligence and quantum computing, on the one hand, and industrial processes, on the other hand, and manufacturing processes. This interlinkage is at the core of the business model certainly of several economies in the EU, but also as the core of significant parts of the Chinese economy.”
Charge d’Affaires ad interim for the Mission of the People’s Republic of China to the European Union Wang Hongjian then offered a keynote speech on Innovation Cooperation Offers New Highlights in China-Europe Cooperation. In his speech, Mr. Wang emphasised that China and the EU should be more open and inclusive in their cooperation on innovation, should further align their innovation policies to achieve mutual benefits and should work to make long-term strategic plans. “Looking ahead, China and the EU are faced with shared challenges which will reshape the future of humankind, such as climate change, the new technology revolution, resources and environment challenges,” he stated. “China and the EU, as two major players, are duty-bound to join forces with a mind-set of reform and innovation, and to make a greater contribution to world peace, development and prosperity.”
CEIBS Distinguished Professor, Former World Trade Organisation Director-General and Notre Europe Honorary President Pascal Lamy continued with the next keynote speech of the event, in which he discussed the topic of Sino-EU Cooperation Under the New International Economic Order. In his speech, Prof. Lamy emphasised the point that, despite current challenges and uncertainties, there remains ample space for China and the EU to work together in areas of research and innovation. “We have a series of areas where we are already [involved in a lot of] cooperation, [including] food, agriculture, biotech, the environment and health,” he said. “So there are many reasons to move forward and enhance or foster and increase cooperation – many of them domestic and many global. This is how we should look at this picture.”
Bruegel Deputy Director Dr. Maria Demertzis moderated the first session of the day on the topic of Research and Innovation: Competition or Cooperation in the EU-China Context? Shanghai Institutes for International Studies President Chen Dongxiao, CEIBS Vice President and Dean Ding Yuan, and Bruegel Senior Fellow Prof. Reinhilde Veugelers participated in the panel discussion, in which they took an in-depth look at how “co-opetition” (or co-operative competition) in the development of new technologies is acting as a driving force for the 4th Industrial Revolution and how complementary priorities and strategies represent bright prospects for EU-China cooperation.
Following the luncheon, EFMD CEO and Director General Eric Cornuel traced the history of CEIBS to Brussels as “the Heart of Europe” and reviewed some of its world-renowned achievements in academic innovation over the past 25 years. “There is no doubt that innovation is a catalyst for growth built on the foundation of creative drive, co-operation and openness,” Prof. Cornuel said, adding later that, “China and Europe more than ever should get closer and create a favourable environment for innovation, growth and mutual understanding. No doubt CEIBS is an instrument of this co-operation.”
CEIBS Associate Dean (Research) and Professor of Economics and Finance Xu Bin then delivered a keynote speech on China’s Innovation Potential and Its Global Implication. In his speech, Prof. Xu noted that China’s investment in innovation has led to situation in which “it is inevitable that advanced countries will have direct competition with China.” At the same time, he said that the country’s development has resulted in increased demand for services imported to China and that companies seeking to maintain a competitive advantage “should make more effort to specialise in variety, in quality, and in brand.”
CEIBS Board of Directors Co-chairman and EFMD Honorary Chairman Dr. Gerard Van Schaik moderated the second session of the day, in which he invited participants to join a discussion on the theme of Industrial Approaches in Innovation Cooperation Between China and EU. Panellists featured China-EU Association President Luigi Gambardella; WINNER Technology Co., Inc. President and CEO Mr. Zhang Hongjun (CEIBS EMBA 2013); and DFKI Robotics Innovation Center Bremen Director Prof. Dr. Dr. h.c. Frank Kirchner. During the course of the discussion, participants shared their views on key drivers, incentives and best practices for innovation, and offered suggestions on how China and the EU can work both independently and collaboratively to foster innovation in the future.
Today’s event was co-organised by CEIBS and Bruegel, with support from the EU-China Business Association, the EFMD, Shanghai Institutes for International Studies and the Mission of the People’s Republic of China to the European Union, as is part of the CEIBS Insights 2019 Europe Forum series. The Europe Forum Series coincides with the on-going CEIBS 25th Anniversary Celebration and will wrap up in October with events in both Paris and London. For more details about these and other upcoming CEIBS events, please visit our events page here.
SOURCE China Europe International Business School (CEIBS)
48North Successfully Completes Planting at its 100-acre Outdoor Organic Cultivation Facility, Good:Farm
48North Cannabis Corp. (“48North” or “the Company”) (TSXV: NRTH) is pleased to announce that it is has completed the planting of its first outdoor cannabis crop at its Good:Farm, Canada’s largest outdoor organic cannabis cultivation facility (3.7 million sq. ft. of cultivation space) in Brant County, Ont.
48North has successfully planted more than 250,000 cannabis seeds at Good:Farm. At the farm, 48North has planted 10 unique cultivars proven to be successfully grown outdoors; both high-THC and high-CBD strains were selected for planting. The Company expects two harvests annually at the Good:Farm. The first harvest is planned for late-August and will be exclusively the Company’s auto-flowering strains; the second harvest, of photoperiod plants is planned for mid-October.
Good:Farm, Canada’s first and largest outdoor organic cannabis facility, has the potential capacity to yield more than 40,000 kg of dried cannabis, at what 48North expects to be the lowest cost per gram in the country.
“Planting nearly 100 acres of organic cannabis outdoors was a significant accomplishment for the organization, relying on both established agricultural practices and innovative cannabis production techniques. Our team of expert farmers and growers ensured this ground-breaking task was a success,” said Jeannette VanderMarel, co-CEO of 48North.
48North has signed supply agreements for cannabis from its Good:Farm and other licensed production facilities, including:
- An historic outdoor cannabis agreement with the Société Québécoise du cannabis for 1,200 kg of dried cannabis;
- A supply agreement with the Alberta Gaming, Liquor and Cannabis agency for 2,460 kg of dried cannabis; and
- A supply agreement with the Ontario Cannabis Store for 1,200 kg of dried cannabis.
To bring Canadians along on this journey, 48North is hosting a bi-weekly web series on Good:Farm. “See the Good” focuses on the challenges, opportunities and lessons learned on the path cannabis takes from seed to sale.
Good:Farm has a number of strategic advantages, including ultra-low-cost cannabis as well as environment-friendly and energy-efficient production. In addition, the farm’s production will help address the current national shortage of recreational cannabis.
48North Cannabis Corp. (TSXV: NRTH) is a vertically integrated cannabis company focused on the health and wellness market through cultivation and extraction, as well as the creation of innovative, authentic brands for next-generation cannabis products. 48North is developing formulations and manufacturing capabilities for its own proprietary products, as well as positioning itself to contract manufacture similar products for third parties. 48North operates Good:Farm, a 100-acre organic cannabis farm that is expected to produce more than 40,000 kg of organic, sun-grown cannabis, securing a significant first-mover advantage in the production of low-cost, next-generation, extract-based cannabis products. In addition, 48North operates two indoor-licensed cannabis production sites in Ontario. 48North cultivates unique genetics at its wholly owned subsidiary, DelShen Therapeutics Corp. (“DelShen”) and processes cannabis and manufactures next-generation cannabis products at Good & Green Corp. (“Good & Green”), both Licensed Producers under the Cannabis Act. 48North has a growing portfolio of brands that include Latitude, a women’s cannabis platform (explorelatitude.com); Mother & Clone, a rapid-acting sublingual cannabis nanospray (momandclone.com); and Avitas, a single-strain vaporizer cartridge (avitasgrown.com).
DISCLAIMER & READER ADVISORY
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. Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could,” “intend,” “expect,” “believe,” “will,” “projected,” “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Forward-looking statements in this news release include statements relating to the business plan and future operations of the Company. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, including the possibility that the business plan described herein will not be completed, that 48North may not derive the expected benefits from such business plans, or that applicable regulatory approvals will be obtained to carry out the activities contemplated herein. The business of the Company is subject to a number of material risks and uncertainties. Please refer to the Company’s SEDAR filings for further details. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the parties. The material factors and assumptions include the Company being able to obtain the necessary corporate, regulatory and other third-party approvals, and licensing and other risks associated with the Cannabis Act. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
SOURCE 48North Cannabis Corp.
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