VANCOUVER, British Columbia, June 26, 2019 (GLOBE NEWSWIRE) — RavenQuest BioMed Inc. (the “Company” or “RavenQuest”) – (CSE: RQB OTCQB: RVVQF Frankfurt: 1IT) is pleased to provide the following full update on all aspects of the Company’s production, distribution and expansion plans for 2019 and beyond.
RavenQuest is gearing up for rapid growth in Canada as well as in Europe. Canadian production will accelerate to full capacity by summer 2019 and our European expansion is swiftly taking shape. We anticipate profitable operations in the near term, driven by our focused approach outlined herein.
Both of our two ultra-modern grow facilities are built and producing cannabis now. RavenQuest boasts a full license to sell cannabis and two completed and licensed cannabis facilities located in Markham, Ontario and Edmonton, Alberta.
With an eye on prudence, Edmonton production began cautiously to ensure the success of our disruptive Orbital Garden technology. The extensive science behind Orbital Gardening results in a unique cannabis plant, one which expresses as a much more efficient plant with very little wasted leaf (fan leaf) and instead produces almost entirely large buds (image shown below). We are very excited with the results, and as we near completion of the first harvest, we are now comfortable with our processes and are in the midst of rapidly ramping production. The shorter 8-week grow cycle of the Orbital Gardens (compared to 12-14 week cycles for flat table growing) further adds to annual yield. We expect the Edmonton facility to reach full capacity by this summer (2019), placing RavenQuest’s Canadian production run-rate at about 11,000 kg per annum.
Photos accompanying this announcement are available at:
Markham production is ramping up nicely with the addition of Dr. Simerjeet Kaur, PhD (McGill) demonstrating her value as a plant science leader. RavenQuest plans to convert the Markham facility to Orbital Gardens in mid-2019.
From a production standpoint, we see 2019 as an inflection year for our Company as we accelerate from nominal production in 2018 to an expected run-rate of approximately 11,000 kg per year by mid-summer 2019.
Canadian Sales & Distribution
RavenQuest has a business-to-business supply agreement in place for up to 8,000 kg in 2019.
In addition, RavenQuest has signed an MOU (Memorandum of Understanding) with the province of British Columbia to supply approximately 2,000 kg. We are currently engaged with several other provinces with a view toward diversifying our geographic footprint with the potential for supply agreements with additional provinces in the near future.
With our business-to-business supply agreement and potential sales to British Columbia, our Company has pre-sold the bulk of our production for 2019, and are working on similar arrangements in both the B2B and recreational markets for 2020 as well.
The cannabis market remains in short supply and we expect this dynamic to persist well into 2020, especially for high quality, indoor grown dried flower or full plant extracts, which is an area of focus for our Company.
We see the evidence in other cannabis markets that dried flower and vaporizers are still a preferred delivery method even after the introduction of edibles and concentrates. Dried flower and vaporizers still account for upwards of 65% of the marketplace in many fully legal edibles environments. We anticipate adding an elegant and disposable vaporized product to our portfolio leading into Cannabis 2.0 (legalization of edibles). We believe strongly in the concept of the “entourage effect”, or the “full plant experience” for cannabis enthusiasts and our vaporizers will carry this same emphasis on the “full plant extract”. We think in terms of the “Fresh Squeezed Orange Juice” of cannabis, rather than the “Tang” or “Kool-Aid” approach, which tends to focus upon fractional distillates.
It has been evidenced that those companies with a more simplified approach are having the greatest on-the-ground as well as financial success, and we intend to walk this path as well. We have a select number of high-quality SKUs, a conservative branding budget and a laser focus upon delivering quality product in simple, biodegradable packaging that emphasizes moisture and quality. We believe this is the pathway to success and this has been demonstrated by a select peer group thus far in the broader market. In our view, quality and consistency will outpace volume and advertising as we address our consumer base. We anticipate profitable operations near term as a result of this focused, sensible approach to the business of cannabis.
RavenQuest sees tremendous opportunity in Europe, and has announced a Heads of Agreement toward a Joint Venture with Norway’s Biocare, which intends to produce upwards of 35,000 kg per year, split on a 50/50 basis between RavenQuest and Biocare.
Of note is that funding of the expansion is anticipated to come from Biocare, while RavenQuest brings its technology, facility design and expertise.
Europe has a population of over 700 million and a growing acceptance of cannabis as both a medicine and a recreational product. RavenQuest has aggressive expansion plans in Europe with our partner, Biocare.
Led by Gerhardt Ludvigsen and his team from Petronor/Hemla, our Norwegian partners completed an extensive due diligence process, which included some of the largest players in the cannabis space. Ultimately, they decided to partner with RavenQuest because our organization has placed the foundation of our business into science and innovation. Our Orbital Gardens can produce far greater quantities of cannabis on a per-square-foot basis than virtually anyone else in the space, and at greater economic efficiencies due to the substantial savings on input costs of the automated system – a system which requires only five grow-room visits per cycle. All of these benefits contribute to profitability while producing some of the most consistent, repeatable and high-quality cannabis anywhere.
We are delighted to be working alongside such an esteemed group with global reach, who also see the tremendous value in RavenQuest, a company that thoroughly understands the science behind growing the cannabis plant properly and at scale.
The first facility is expected to be constructed in Portugal, and the final stages of site selection are ongoing as we write this new release. We anticipate finalizing our agreement by summer 2019 and moving toward breaking ground shortly thereafter.
Between our Canadian ramp-up and European expansion, its an exciting time for us at RavenQuest. We’re now producing cannabis at scale, accelerating production rapidly and have begun selling cannabis and realizing revenues.
Now that our Orbital Garden technology has been proven inside our Edmonton facility, our relationship with Biocare is expected allow us to take production to scale in Europe.
For more information, access RavenQuest’s investor presentation, fact sheet and videos here.
Follow RavenQuest on Twitter @RQBGlobal.
About RavenQuest BioMed Inc.
RavenQuest BioMed Inc. is a diversified publicly traded cannabis company with divisions focused upon cannabis production, management services & consulting and specialized research & development. RavenQuest is a licensed producer with facilities located in Markham, Ontario and Edmonton, Alberta.
RavenQuest maintains a research partnership with McGill University focused upon cultivar (strain) recognition, plant stabilization and yield maximization of the cannabis plant. The Company focuses on partnerships with Indigenous communities.
On Behalf of the Board of Directors of
RAVENQUEST BIOMED INC.
Chief Executive Officer
For further information, please contact:
Mathieu McDonald, Corporate Communications –-877-282-1586
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws, including production at our Edmonton and Markham facilities, the supply of cannabis to the Province or British Columbia pursuant to the MOU, the state of the cannabis market, our expansion into Europe, statements with respect to the execution of a definitive JV agreement between RavenQuest and Cannabis BioCare, the construction of cannabis production facilities in certain geographic regions and the production capacity of those facilities. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
Source: Globe NewsWire West