Kelowna, BC, October 3, 2017 – DOJA Cannabis Company Limited (“DOJA” or the “Company”) (CSE: DOJA) is pleased to announce that its arm’s length offer to acquire (the “Acquisition”) a 22,580 sq.ft. building in Kelowna, British Columbia, out of bankruptcy protection has been approved by the courts. It is anticipated that the closing of the Acquisition will occur on October 27, 2017. Upon completion of the build-out of DOJA’s new facility (the “FUTURE LAB”), DOJA’s corporate cannabis production capacity is expected to surpass 5,000 kg per year.
Trent Kitsch, Founder and CEO of DOJA commented that, “the Acquisition is a game changer for DOJA, it allows us to expand our production capacity by almost 8 times, diversify our strain production, integrate a world class extraction lab and leverage the economies of scale that come from a larger growing-space. Our strategy has always been to reach 5,000 kg of cannabis production per year by the end of 2018, with the addition of the FUTURE LAB we project we will reach or goal in less time and for less capital investment than previously budgeted. The FUTURE LAB has 325 feet of highway frontage which will be utilized to promote DOJA’s cannabis lifestyle brand to the 1.9 million plus visitors to the Okanagan each year and the 40,000 commuters that drive past the facility each day.”
This is a transformative transaction for DOJA for the following reasons:
Potential to Expand Production by 7.6x – With the FUTURE LAB fully built-out, DOJA’s cannabis production capacity is expected to increase by over 760% to more than 5,000 kg of dried cannabis per year, excluding cannabis oil production. By way of comparison, Canada’s largest publicly traded cannabis company, sold 5,985 kg of cannabis over the 12-month period ending June 30, 2017.
Added Scale Increases Competitiveness – Expanding DOJA’s cultivation capacity and scale was necessary to remain competitive on a national level;
Secure Source of Premium Cannabis – The wholesale cannabis market is extremely tight with limited strain selection. The Acquisition helps to ensure that DOJA will have a near term supply source for dried cannabis flower grown, trimmed and cured in a premium fashion at a price per gram that is within DOJA’s control;
Location, Location, Location – The FUTURE LAB is strategically located minutes from Kelowna’s international airport along the only highway into the city from the north – ideal location for creating brand awareness and reducing transportation costs and delivery times;
Leading Edge Design – The FUTURE LAB is expected to implement the latest and most advanced growing technologies to enhance the quality and yield of the flower while minimizing the operating costs and environmental footprint;
Reach Production Target Ahead of Schedule – With the legalization of recreational cannabisexpected to occur in mid-2018, time is of the essence. The first phase of the FUTURE LAB is planned to be ready for first cultivation prior to July 1, 2018;
Concentrates are the Future – Cannabis concentrates and edibles are the largest and fastest growing segments of the cannabis market and DOJA expects they will overtake cannabis whole flower sales. The FUTURE LAB will house a state-of-the-art extraction lab that will drive concentrates innovation for DOJA.
Mortgage Financing Available – To preserve DOJA’s strong working capital position, it is anticipated that up to 75% of the $2.5 million Acquisition purchase price will be financed through debt financing secured by a mortgage over the FUTURE LAB in favour of the lender; and
Phased Build-out Approach – The build-out of the DOJA FUTURE LAB is expected to be completed in two phases, in a financially responsible manner and within the Company’s capital resources and future cashflow. DOJA has no intention to raise additional capital for the foreseeable future.
DOJA Culture Café Opening
We are also pleased to announce the first DOJA Culture Café (“DCC”) is expected to open its doors officially to the public on Thursday October 5, 2017 at 274 Bernard Avenue, Kelowna British Columbia. The DCC is an industry first and will be home to a café and cannabis information center:
- The café will feature artisanal roasted coffee, locally sourced foods and beverages, DOJAbranded clothing and accessories; and
- The cannabis information center will help connect potential medical cannabis users to a physician who can determine whether such medication would help them and, possibly, issue a prescription. The DCC will educate people on the attributes of cannabis strains and the different ways of consuming cannabis.
DOJA Cannabis Production Update
DOJA plans to harvest its first batches of cannabis on October 16, 2017. After the flowers have been hand trimmed, hang dried, cured, and tested, DOJA plans torequest a Pre-Sales Inspection with Health Canada, the last step prior to receiving a Sales License under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”).
ON BEHALF OF THE BOARD OF DIRECTORS
The DOJA team also encourages readers to visit the website at www.doja.life to learn more about DOJAand to sign up for DOJA news updates.
Chief Executive Officer and Chairman of the Board
For further information, please contact Jeff Barber by email at firstname.lastname@example.org.
This news release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this news release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or "should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this news release include information relating to the business plans of DOJA and the listing and trading of the DOJAshares. Such statements and information reflect the current views of the Company.
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.
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 has not passed upon the merits of the Transaction and has not approved nor disapproved the contents of this news release.