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ROCK CREEK, BC, Jan. 25, 2021 /CNW/ - 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 announces it has received its licence to sell flower into the recreational market and directly to medical patients.
Health Canada has amended SpeakEasy's current production and processing licence to allow sales of its flower and pre-rolls into provincial dispensaries and directly to medical patients opening up the path to higher margins by eliminating the necessity to sell to other licence holders. This allows SpeakEasy to be a direct supplier of finished packaged products and not just bulk unpackaged cannabis.
Founder, Marc Geen states, "Another huge milestone has been achieved. This step represents the transition from a farm gate wholesaler to a manufacturer of finished products for retail sale. This has been the long-term plan from the very inception of this company more than 7 years ago and is the culmination of a colossal effort to be able to offer our products directly to consumers."
Increased margin business model
SpeakEasy's vision has always been focused on a business to consumer model, that is now becoming a reality. This amendment is expected to increase our margins, protect us from market fluctuations with respect to raw materials and allow us to create demand for our product by reaching consumers directly. Working with other licensed producers to supply raw flower, co- branding products, custom growing and processing is in our best interest and will continue in the future. SpeakEasy has been very fortunate to have found likeminded operators within the industry and forged strong ties that it will work with to continue existing contracts and develop new sales opportunities.
Building brand equity for the future
With the receipt of our license to permit sales of cannabis flower, we can now focus on brand awareness and sales to customers. "B.C. Bud" has a mystique all by itself and those who can capitalize on that by producing flower worthy of the "B.C. Bud" reputation will reap the rewards of global recognition. SpeakEasy represents the skill and craftsmanship found in legacy market growers here in B.C. and will enter the market giving customers what they are looking for. SpeakEasy brands that accentuate everything "BC Bud" represents have been created and will soon be released into the market now that we have our amended sales licence.
Founder, Marc Geen states, "Like an iceberg, 90 percent of SpeakEasy, up to this point, has been below the surface. So much activity and work goes unseen until a point is reached where a thousand small things all come together, this is one of those moments. Achieving the amended sales licence requires an immense amount of work and represents a radical change in direction for the Company. Sales and marketing can now be directed towards our consumers, we can get our product out there that speaks for itself. We have waited a long time to be on this stage and everyone here is excited about the opportunity."
Geen further states, "The importance of this achievement cannot be overstated, a huge thank you to our dedicated staff, without them we could not achieve all we have. The team at SpeakEasy has been more committed and more passionate over the last two years than any company could ask for."
The Company also plans to grant up to 1,030,000 incentive stock options to certain of its directors, officers, employees and consultants. Such grant to be made in accordance with applicable securities laws and the policies of the Canadian Securities Exchange.
About SpeakEasy Cannabis Club Ltd.
SpeakEasy Cannabis Club Ltd. holds a cultivation, processing and amended 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 favourable location to grow and process high-quality cannabis products at low cost. SpeakEasy cultivates small batch, high quality craft cannabis at scale in its 63,200
Approved on behalf of the
Board of Directors of SpeakEasy
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 increased margins, protection from market fluctuations and the creation of demand for its product; its expectations regarding sales of product, including flower and pre-rolls and 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 cannabis flower and cannabis related products including pre-rolls, 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 has not approved nor disapproved the contents of this news release.
SOURCE Speakeasy Cannabis Club Ltd.
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