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The acquisition of a fully licensed cannabis facility will expand Chemesis’ capabilities to process over 500,000 kg of cannabis annually within the U.S.
Vancouver, BC – March 7, 2019 – Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), announces it has entered into binding agreements to acquire 100% of a fully-operational extraction and manufacturing facility in Cathedral City, California (“Facility”). Once completed, this transaction (“Acquisition”) will expand the Company’s processing ability to over 500,000 kg of cannabis annually. The new state-of-the-art facility is fully licensed, and the Acquisition is expected to double the Company’s current capacity to process large amounts of cannabis to extract THC, CBD and other cannabinoid and terpene products.
The Facility is located within close proximity to the Company’s existing licensed extraction facility, which commenced operations this quarter. Upon completion, the Acquisition will permit the Company to operate two fully licensed and commercialized facilities, which is expected to streamline resources for the Company’s controlled expansion plan within the U.S.
The Acquisition will result in the Company acquiring control over the following licenses:
- Cannabis Business Local License, #MCL-17-007-M-18
- Cannabis Business Local License, #MCL-17-007-C-18
- Type 7 Manufacturing License – Adult & Medical Cannabis Products, #CDPH-T00000362
Furthermore, the Company is exploring the possibility of processing hemp at the Facility for full spectrum plant extracts rich in CBD and leveraging the hemp legalization provisions of the 2018 U.S. Farm Bill to capitalize on the expected increased demand for CBD. It has been estimated that the CBD market will have a value of over $2.1 billion by 2020[1]. Legislation is currently pending in California that would accommodate incorporating hemp-derived cannabinoids and terpenes into the currently regulated cannabis supply chain (similar to neighboring legal cannabis states like Oregon), as well as non-THC-infused food, beverages and cosmetics.
“The Company will, upon completion of the Acquisition, significantly increase its production and manufacturing capabilities in the U.S.,” said CEO of Chemesis, Edgar Montero. “The addition of this new facility will allow the Company to extract high-quality cannabinoids and terpenes for use in a wide variety of consumer products. Chemesis will then be able to leverage its existing expertise in extraction, distribution, and sales to continue growing revenues and build long-term value. I believe this expansion will open up considerable new revenue opportunities for the Company when we begin processing hemp,” added Montero.
Under the terms of this acquisition, Chemesis will pay $1,000,000 USD 90 days from closing and issue 4,600,000 shares. The stock is subject to 36-month lock-up/leak-out guidelines. The Acquisition is expected to close on or about March 30, 2019.
On Behalf of The Board of Directors
Edgar Montero
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within California, Puerto Rico, and Colombia.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods to provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality product to its consumers from seed to sale.
Investor Relations:
1 (604) 398-3378
Social Media:
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable securities laws, including in relation to statements regarding the Acquisition, the anticipated benefits of the Acquisition, the expected size of the CBD market, the Company’s ability to increase production of various cannabidiol products, and generally regarding the business, products and future of the Company’s business, its product offerings and plans for sales and marketing, including upon completion of the Acquisition. 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 Acquisition will not be completed as proposed or at all, that the anticipated benefits of the Acquisition will not materialize, that the CDB market will not expand as anticipated, that the Company will not be able to expand production of CDB products at the rate anticipated upon closing of the Acquisition (or at all), and generally 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.
Vancouver, BC – March 01, 2019 – Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), announces unaudited fiscal Q2 revenues for the period ending December 31, 2018 of $2,820,105 CDN, a 47% increase from the previous quarter.
In its second quarter of operations, the Company generated revenues through its state compliant manufacturing, packaging, and distribution facility Desert Zen. With current distribution throughout Southern California, the Company continues to expand its reach within the legal dispensary network. The successful launch of the Jay & Silent Bob brand has generated significant demand which has continued into fiscal Q3.
Chemesis closed the acquisition of Natural Ventures in fiscal Q2 and has been building out its operations on the island to serve increasing customer demand. The Company subsequently announced it will be cultivating and manufacturing CBD products for the Puerto Rican medical cannabis market in the fiscal year.
Edgar Montero, CEO of Chemesis stated, “The Company is moving forward in every aspect of its business plan and we are looking forward to the expansion of our assets. Chemesis recently announced a $4 million annual purchase order, which we believe to be the start of high demand, as consumers and businesses continue to recognize our high-quality cultivation, and manufacturing processes.”
Subsequent to the quarter end, Chemesis closed the acquisition of La Finca Interacviva-Arachna Med on January 9th, 2019. The Company anticipates its first harvest and commencing construction of its GMP certified extraction facility, in the spring of 2019. Furthermore, the acquisition of La Finca brought the company in excess of CDN $2,000,000 in working capital.
Additionally, the Company’s industrial scale extraction facility in California, has obtained all necessary licensing and has proceeded with commercialization. The Company looks forward to scaling up in the coming months to meet increasing demand in the legal California cannabis market.
With the current financing completed of CDN $2,760,000 and up to $10,000,000 in equity facility as of today’s announcement, Chemesis is in a strong cash position to meet its near-term cash commitments to ensure expansion build out and revenue growth. The additional equity facility gives Chemesis access to a total of CDN $34,250,000 in draw down equity facilities between Alumina Partners Inc. and Global Emerging Markets.
The unaudited condensed consolidated interim financial Statements and MD&A for the three months ended December 31, 2018 will be filed on SEDAR and available at www.sedar.com.
On Behalf of The Board of Directors
Edgar Montero
CEO and Director
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within California, Puerto Rico, and Colombia.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods to provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality product to its consumers from seed to sale.
Investor Relations:
ir@chemesis.com
1 (604) 398-3378
Social Media:
Chemesis.facebook
Chemesis.twitter
Chemesis.instagram
DesertZen.instagram
CaliforniaSap.instagram
Jay&SB.instagram
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.
About Chemesis International
INNOVATION FROM SEED TO SALE
Chemesis is an innovative, first-mover in the cannabis industry. With it’s worldwide reach and exclusive partnerships, Chemesis will establish and grow new markets around the globe.
Chemesis operates in the most important and most profitable sectors of the cannabis industry. By providing knowledge, structure and confident leadership, Chemesis will grow new markets and revenues within Cultivation, Manufacturing, Distribution and Retail Sales.
With current operations underway in Puerto Rico with Natural Ventures, Colombia with La Finca, and California with California Sap and Desert Zen. Chemesis is positioned for rapid growth in the emerging fully-licensed and fully-compliant cannabis industry.
CULTIVATION
Starting with our state of the art grow facility in Puerto Rico, which showcases a 2000+ grow light capacity and a 30,000+ lb overall grow capacity, Chemesis has multiple expansion opportunities currently under review in both Puerto Rico and California. La Finca brings over 1,000 acres of land for cultivation in Colombia. Chemesis has over 2,000 relationships with farming families that comprise its land package.
MANUFACTURING
Chemesis is able to offer it’s clients all types of extractions, formulations & products, specializing in BHO Extraction, Alchohol Extraction, and CO2 Extraction and currently has the capacity to process over 2000lbs of raw material per day.
DISTRIBUTION
With new regulations impacting the California market, Desert Zen has emerged as a fully compliant first mover.
Desert zen currently has a significant footprint in Southern California and, the company has a fleet of fully compliant vehicles that are servicing the state.
RETAIL SALES
Chemesis is currently retailing exclusive products in Puerto Rico and actively engaging retail storefronts in the California market. In addition, Chemesis is working to open exclusively branded shops in multiple marketplaces. Chemesis distributes and transports California Sap, Jay and Silent Bob’s Private Stash, as well as third party brands to over 600 dispensaries in California and Puerto Rico.
SOURCE: https://chemesis.com/
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