Sugarbud Craft Growers Corp (SUGR)

[postal72]

Vertical Aeroponic Cannabis Cultivation Facility at Stavely, Alberta

SugarBud is pleased to announce that Phase 1 of the Facility has been erected by ConstructShieldTM, with direct assistance from Gunther’s Masonry Construction Ltd. Construction is currently underway on the interior of the building, including the inner walls, electrical, mechanical, plumbing and other components of the Facility. See Exhibits 1 and 2 for pictures of Phase 1 and Exhibit 3 for a drone video of Phase 1.

Exhibit 1: http://www.globenewswire.com/NewsRoom/AttachmentNg/8b24e6ea-8736-41c9-9f5a-40c2ad0a9ce7

Exhibit 2: http://www.globenewswire.com/NewsRoom/AttachmentNg/deb98546-930f-453d-a334-f33f1a5a4ae0

Exhibit 3 – Drone Video of the ConstructShieldTMFacility:

Upon completion of the interior, Phase 1 of the Facility will be comprised of an administrative and service area, a nursery, and eight 2,200 square foot flowering rooms. Each flowering room will have isolated HVAC and environmental controls, allowing SugarBud to “fine-tune” the temperature, humidity and air-circulation for each room, with the intent of maximizing product quality on a strain-by-strain basis, and limiting the impact of any potential pest or pathogen infestations.

Targeted Timing of Cultivation

SugarBud is working diligently to equip the first growing room (“Phase 1A”) by the end of calendar 2018. Subject to the receipt of cultivation license from Health Canada, SugarBud will then commence the cultivation of cannabis with the intent of obtaining a sales license (“Sales License”) under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR), and/or other Cannabis Regulations, as soon as possible thereafter.

In order to accelerate the receipt of a Sales License, the Company will equip the seven remaining Phase 1 flowering rooms (“Phase 1B”) concurrently with the production of cannabis in Phase 1A. The Company is targeting to obtain its Sales License and the completion of all eight Phase 1 flowering rooms by mid-2019.

The Company will commence construction of Phase 2 when capital permits. It is expected that the Company will have the capital required to fully-construct Phase 2 upon the syndication and finalization of the previously announced $17.65 million credit facility (“Credit Facility”) with Farm Credit Canada (“FCC”). The Company is currently in negotiations with a Canadian financial institution regarding the syndication of the Credit Facility.

Phase 2 consists of two “wings” constructed on the side of Phase 1. See Exhibit 4 for an illustration of the Phase 2 “wings” in relation to Phase 1.

Exhibit 4: http://www.globenewswire.com/NewsRoom/AttachmentNg/b213fce0-9ce4-487f-8462-671ccf9f8f87

While the final design of the Facility is subject to change, the planned specification of Phases 1 & 2 is as follows:

Phase (#) Layers of Flowering Canopy (#) Flowering Canopy (Square Feet) Estimated Capital Cost (Millions) Estimated Annual Dried Cannabis Flower Production (Kgs)
1 3 ~27,000 ~$15.3 ~9,000
2 3 ~43,200 ~$19.6 ~14,200
Total 3 ~70,200 ~$34.9 ~23,200
Phase (#) Layers of Flowering Canopy (#) Flowering Canopy (Square Feet) Estimated Capital Cost (Millions) Estimated Annual Dried Cannabis Flower Production (Kgs)
1 3 ~27,000 ~$15.3 ~9,000
2 3 ~43,200 ~$19.6 ~14,200
Total 3 ~70,200 ~$34.9 ~23,200

Read more at http://www.stockhouse.com/companies/bullboard/v.rrl/relentless-resources-ltd?postid=28776979#dVw8WXYKo0KQ0fM7.99