Sugarbud Craft Growers Corp. announced that it has entered into a toll processing agreement with Adastra Labs Holdings Ltd. (“Adastra“). Under the terms of the agreement, Adastra will supply Sugarbud with standard processing services for a minimum of 1,200,000 grams of premium dried cannabis flower and trim over a period of 12 months beginning June 1, 2020, subject to licensing and regulatory approvals.
“Building upon the supply agreement we signed with Adastra in September 2019, we are pleased to be expanding our relationship and look forward to collaborating with the entire team to develop novel value-added inhaled extract formulations and formats to complement our premium dried cannabis products,” stated John Kondrosky, CEO of Sugarbud.
Andy Hale, CEO of Adastra, stated, “This latest agreement further develops our growing partnership with Sugarbud who will provide high-quality cannabis that will be used to create premium extract products. We look forward to our continuing collaboration with the team at Sugarbud.”
“Sugarbud’s near term product leadership strategy is to leverage its existing licensed cultivation and production facility to produce exceptional premium dry flower and inhalable derivatives such as pre-rolls and concentrates. Our strategy and approach to revenue and value generation is driven by a relentless focus on providing a high-quality product that adult recreational consumers seek, through targeted, controlled commercial expansion,” added Mr. Kondrosky.
Sugarbud expects its first harvest will occur on or about March 2, 2020. “Our first harvest represents a major milestone for Sugarbud and we are all very pleased with the progress our team in Stavely is making with the quality of our first crop and with the operating level of our facility overall,” stated Mr. Kondrosky.
“As a craft cultivator we aspire to be known first and foremost as a trusted world-class producer of exceptional high-quality cannabis. As a premium product provider, focused on product leadership and customer satisfaction, we also believe that the heart and soul of everything we do starts with what we grow. With a robust and diversified genetic portfolio, and an unwavering commitment to high quality cultivation, we have all ingredients necessary to deliver relevant and category leading products to our future adult recreational customers. At Sugarbud we believe that positive customer experience is everything and we are passionate about delivering products that both delight and exceed expectations,” continued Mr. Kondrosky.
Sugarbud expects to submit an amendment to expand upon their existing Medical Sales license to permit the sale of interprovincial adult recreational dried cannabis products to authorized provincial retailers in February 2020. Sugarbud plans to launch its first adult recreational products in late Q3 2020.
Significant Market Opportunity Remains
Management believes that despite some of the headwinds present in the market today, significant opportunity remains for a focused company like Sugarbud to distinguish itself as a leader in the cannabis space by implementing a very disciplined product driven supply chain that begins and ends with the end customer in mind.
Sugarbud is pleased to announce the appointment of Mr. Chris Moulson LLB, MBA as V.P. of Finance and Chief Financial Officer of the Company effective February 11, 2020. Chris brings more than 25 years of experience in finance, business development, corporate law, commercial marketing and strategic planning roles to Sugarbud. Prior to Sugarbud, Mr. Moulson served as Chief Financial Officer of Polaris Seismic International, Canada’s leading international seismic exploration company, with operations across the Middle East and East Africa.
“Chris possesses critical skillsets that will undoubtably make a positive impact and contribute to our overall success moving forward,” stated Sugarbud CEO, John Kondrosky.
Mr. Brad Giblin has made a personal decision to step down from his positions as Sugarbud’s V.P. of Finance and Chief Financial Officer to return to the energy sector. “We are incredibly grateful for the leadership and many contributions Brad has made during his tenure with Sugarbud and we wish Brad nothing but the best in his future endeavors”, stated CEO, John Kondrosky. “We are also grateful for the time and effort Mr. Giblin took in order to ensure and facilitate a seamless transition between himself and his incoming replacement,” continued Mr. Kondrosky.