New Leaf Ventures Inc. (NLVVF)

[mick]

New Leaf Ventures Reports Positive Operational Outlook
July 16, 2020, 6:00 AM MST

https://www.bloomberg.com/press-releases/2020-07-16/new-leaf-ventures-reports-positive-operational-outlook

New Leaf Ventures Reports Positive Operational Outlook

VANCOUVER, British Columbia, July 16, 2020 (GLOBE NEWSWIRE) -- New Leaf
Ventures Inc. (CSE: NLV) (“New Leaf,” “NLV” or the “Company”), a management
and investment organization dedicated to evaluating and accelerating advanced
stage operations in the North American Cannabis sector is pleased to advise on
operational activities reported by its New Leaf USA team.

New Leaf USA Inc. (and its subsidiaries) provides licenses, consulting
services, physical and intellectual property, production equipment and related
services to a Washington-based Tier 3 Producer/Processor focused on
industrial-scale agronomy, processing, packaging, marketing and distributing
cannabis and cannabis related products. While recent global events have
created uncertainty in many industries, reports from the Seattle-based team
provide strategic insight and cautious optimism for the coming harvest season.

Product Sales Price Increase Averages 28%

o Over the past two years, the cannabis industry in Washington state has
experienced stabilization in supply due to consolidation of producers and
processors.
o The stabilization has resulted in an increase in wholesale costs of flower
and extraction material throughout the regional sector.
o Beginning June 1st, the New Leaf USA licensee competitively matched the
industry trend by increasing fees on flower sales to retailers by an
average of 28% with virtually no impact to COGS. Retailer acceptance has
been positive across the board.
o Based on information gathered from its industry partners, New Leaf USA
expects wholesale prices to remain stable throughout the 2020-2021 harvest
season, subject to normal seasonal fluctuations.

Harvest Season Preparations

o New Leaf USA has been actively establishing and building relationships
with regional producers and processors in preparation for the upcoming
harvest season.
o Early light deprivation greenhouse and auto-flower harvests are expected
to start in late July, ramping up in August. Large scale outdoor and
greenhouse harvests will begin in September through October.
o The license holder anticipates the purchase and processing of several
thousand pounds of material in August, ramping up through the fall. New
Leaf USA participates in earnings through its licensed IP whereby monthly
revenues are earned relative to units sold. Therefore, the more biomass
processed and sold ensures positive cash flow to New Leaf USA.
o A portion of purchased material will be packaged and sold via New Leaf
USA’s affiliate Weed brand, with the remainder slated for sales in bulk to
processors.

Cultivation Facility Upgrades

o New Leaf USA has received funding and initiated a series of upgrades to
increase the scope of licensed indoor cultivation facilities.
o Phase one upgrades include higher efficiency lighting with increased light
output. The operator expects a 25-35% increase in production volume of
usable material based on initial tests of the new lighting configuration.
o The Company has also advanced changes to the drying and curing process
that will result in increases in quality of flower production.
o New Leaf USA has authorized the implementation of an integrated software
system for scheduling, managing, and tracking cultivation operations. This
system will increase efficiencies in the cultivation cycle, improve the
ability to identify issues, implement corrective measures and improvements
(such as the introduction of new strains), and facilitate
inter-departmental communication in support of lean manufacturing
processes.
o Phase two upgrades will focus on environmental and process controls within
the cultivation facility, resulting in improvements in consistency and
quality of overall flower production, packaging and logistics.

Michael Stier, CEO of New Leaf Ventures states, “The reports and activities
from our New Leaf USA subsidiary are welcome news. Our investment strategy and
management controls are delivering a focused approach to production
improvements and a practical pathway to revenue growth. We are delighted by
these early successes including news of increased product interest by a
growing number of regional retailers and processors. With an increased ability
to deliver consistent high-quality products we aim to focus on cost-efficient
replicable methods to achieve a dominant role as a leader in best practices
and shareholder value.”

About New Leaf Ventures Inc. (CSE: NLV)
New Leaf Ventures Inc. is developing a cannabis sector-based scalable
securities concept of focused financing and applied management to achieve
earnings growth through targeted investment. The Company’s flagship enterprise
is New Leaf USA and its subsidiaries, which provide licenses, consulting
services, real property, intellectual property and equipment for lease and
ancillary services to a Washington-based Tier 3 Producer/Processor focused on
cultivating, growing, processing, packaging, and distributing cannabis and
cannabis related products.

For further information, please contact:
New Leaf Ventures Inc.
Invictus Investor Relations
Tel: [phone]
Email: [e-mail]

Forward Looking Statement
This news release contains statements and information that, to the extent that
they are not historical fact, may constitute “forward-looking information”
within the meaning of applicable securities legislation. Forward-looking
information may include financial and other projections, as well as statements
regarding future plans, objectives or economic performance, or the assumption
underlying any of the foregoing. In some cases, forward-looking statements can
be identified by terms such as “may”, “would”, “could”, “will”, “likely”,
“except”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”,
“estimate”, “outlook”, or the negative thereof or other similar expressions
concerning matters that are not historical facts. Examples of such statements
include, but are not limited to, statements with respect to the objectives and
business plans of the Company; ability to realize benefits from its recent
corporate appointments; ability to retain its key personnel; the intention to
grow the Company’s business and operations; the competitive conditions of the
industries in which the Company operates; and laws and any amendments thereto
applicable to the Company.

Forward-looking information is based on the assumptions, estimates, analysis
and opinions of management made in light of its experience and its perception
of trends, current conditions and expected developments, as well as other
factors that management believes to be relevant and reasonable in the
circumstances at the date that such statements are made, but which may prove
to be incorrect. The material factors and assumptions used to develop the
forward-looking information contained in this news release include, but are
not limited to, key personnel and qualified employees continuing their
involvement with the Company; and the Company’s ability to secure financing on
reasonable terms.

Forward-looking information involves known and unknown risks, uncertainties
and other factors that may cause the actual results, performance or
achievements of the Company to differ materially from any future results,
performance or achievements expressed or implied by the forward-looking
information, including, without limitation, risks relating to the future
business plans of the Company; risks that the Company will not be able to
retain its key personnel; risks that the Company will not be able to secure
financing on reasonable terms or at all, as well as all of the other risks as
described in the Company’s management discussion and analysis for year ended
December 31, 2019 under the heading “Risks and Uncertainties”. Accordingly,
readers should not place undue reliance on any such forward-looking
information. Further, any forward-looking information speaks only as of the
date on which such statement is made. New factors emerge from time to time,
and it is not possible for the Company’s management to predict all of such
factors and to assess in advance the impact of each such factor on the
Company’s business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking information. The Company does not undertake any obligation
to update any forward-looking information to reflect information or events
after the date on which it is made or to reflect the occurrence of
unanticipated events, except as required by law, including securities laws.

The CSE does not accept responsibility for the adequacy or accuracy of this
release.



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