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SpeakEasy to Produce 2,225 kg of High Quality
Extracts
ROCK CREEK, BC, July 31, 2021 SpeakEasy Cannabis Club Ltd.
(CSE: EASY) (Frankfurt: 39H) (the
"Company" or "SpeakEasy") a holder of a federal
licence to cultivate, process and sell cannabis under the Cannabis
Act, is delighted to announce a production and processing update on
its initial 2020 harvest of 72,000 KG.
Last year was all about producing one of Canada's largest outdoor harvests and
finalizing a cultivation strategy to position itself for wholesale
and retail sales. Our vision has always been to compete in a mature
market by having on-site infrastructure to achieve some of the
industry's lowest cost of production.
As 2.0 products have proven to represent some of the largest
growth categories, SpeakEasy's low-cost of input material, combined
with its on-site extraction lab and in-depth experience, is proving
to be a winning formula for the Company.
2020 Harvest Update on Process and Sales:
- With the addition of infrastructure improvements and equipment
testing completed, we started processing the 2020 harvest on a
production level in March 2021 at a
limited capacity.
- B-to-B sales increased above our internal estimated capacity.
The products were priced at a premium in their respective
categories with associated wholesale production costs of
approximately $30 million, or an
average gross margin of 70%.
- 75% of last year's outdoor harvest continues to be processed
into high-quality extract products and sold under sales contracts
that are currently in place.
- SpeakEasy continues to process its remaining inventory from the
initial 2020 outdoor harvest that will produce an estimated 2,225
kg of premium extracts. Our concentrates will be incorporated into
consumer-packaged products under SpeakEasy's brands and distributed
into the Canadian retail market. These products currently have a
retail values of approximately $115,000,000 when sold in retail stores
across Canada.
"While many cannabis companies have raised significant
amounts of capital to build luxurious infrastructures, SpeakEasy's
goal has always been focused on becoming cash flow positive through
our lean farming principles. These principles protect our investors
from dilutions while allowing us to control our own destiny. Our
processes and achievements are allowing the Company's dreams to
come true. We have relied on tremendous experience and built a
strong company culture to compete on the global stage very soon."
– Founder, Marc Geen.
About SpeakEasy Cannabis Club Ltd.
SpeakEasy Cannabis Club Ltd. holds a cultivation, processing and
sales licence issued by Health Canada under the Cannabis
Act. SpeakEasy owns 290 acres of land in Rock Creek, British Columbia, and leverages
five generations of farming experience in B.C. as well as its
favorable location to grow and process high-quality cannabis
products at low cost. SpeakEasy cultivates small batch, high
quality craft cannabis at scale in a portion of its
63,200 square foot indoor cannabis complex and has completed
its harvest of its 60-acre outdoor field. Total yearly production
of cannabis flower and biomass is projected to be in excess of
140,000 kilograms this year.
On behalf of the Board of the Directors
Forward Looking Statement
This news release contains statements that constitute
"forward-looking statements." Such forward looking statements
involve known and unknown risks, uncertainties and other factors
that may cause SpeakEasy's actual results, performance or
achievements, or developments in the industry to differ materially
from the anticipated results, performance or achievements expressed
or implied by such forward-looking statements. Forward looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
"projects," "potential" and similar expressions, or that events or
conditions "will," "would," "may," "could" or "should" occur.
Forward-looking statements in this document include statements
concerning SpeakEasy's expectations concerning the sales of its
extracted product and revenues generated therefrom; its intent to
produce and sell high quality craft cannabis, and all other
statements that are not statements of historical fact.
Although SpeakEasy believes the forward-looking information
contained in this news release is reasonable based on information
available on the date hereof, by their nature forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. By their nature,
these statements involve a variety of assumptions, known and
unknown risks and uncertainties and other factors, which may cause
actual results, levels of activity and achievements to differ
materially from those expressed or implied by such statements.
Examples of such assumptions, risks and uncertainties include,
without limitation, assumptions, risks and uncertainties associated
with general economic conditions; COVID-19, adverse industry
events; future legislative and regulatory developments involving
cannabis; the Company's ability to access sufficient capital from
internal and external sources, and/or inability to access
sufficient capital on favorable terms; the cannabis and hemp
industries and markets in Canada
and generally; the demand for CBD distillate, cannabis and cannabis
related products, the ability of SpeakEasy to implement its
business strategies; competition; the ability of SpeakEasy to
obtain and retain all applicable licences under the Cannabis Act
and other assumptions, risks and uncertainties.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS
RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE
OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER
SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON
FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO,
IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR
TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
The Canadian Securities Exchange nor its Regulation Services
accepts responsibility for the adequacy or accuracy of this
release.
SOURCE Speakeasy Cannabis Club Ltd.