Vancouver, British Columbia - TheNewswire - September 25, 2020 - Gaia Grow Corp. (CSE:GAIA) (CNSX:GAIA.CN) (the "Company" or "Gaia") is providing the following operational update, with the intent of advising investors of income generating efforts.
Since receiving the provincial approval for the Nelson Green Room store, it was required to renovate the building to comply with the current regulations for cannabis retail businesses in Nelson and British Columbia. As of the start of the second week of September, the renovations have been completed and the store is now approved for opening. Staff is hired and ready and preparing for the official grand opening. The intentions is for the two retail locations in Powell River, British Columbia, to follow pending LCRB approval.
Since having taken over the facility in Lacombe for the expansion of milling operations in mid-June, bale breaking has gradually resumed over the summer months with the intent of separating fibre, seed and flower in preparation for their sale down respective supply chains. Fabrication and modification of additional specialized equipment is expected to complete in the coming weeks, which will speed up the bale breaking and the post-harvest separation operations. To provide perspective, the current pace of separation and milling currently runs at a pace of approximately 1-1.5 bales per hour and once the new equipment is in place and operational, it is anticipated that it will allow Gaia and Enagon to reach speeds of 3-5 bales/hour at a minimum, a huge shift of pace which will both consume Gaia's bales faster as well as facilitate intake of third-party biomass for toll-processing in the future.
Efforts in developing sales contracts, both with Gaia's Joint Venture partner CannGroup, as well as other buyers for the various products that come from this tri-crop plant. Fibre, seed and flower will each be sold down their respective income-generating supply chains, per Gaia's original hemp-focused business model. Further updates on these sales contracts will be released as they are completed and signed.
Additional expansion of the CannGroup joint venture for processing of the milled hemp into extracted crude, distillate and isolate is underway, with contracts having been developed over the summer months. Further updates on the completion of the contracts will be provided to investors as they are completed and signed. In addition, CannGroup has completed and submitted its Evidence Package for a Site B Expansion for an extraction and formulations-focused processing site in Calgary, Alberta. Estimated timing on the approval process for this Site B is anticipated to be around the end of Q4 2020.
CHIEF FINANCIAL OFFICER
In addition, the Company is pleased to announce that effective immediately, Natalia Samartseva has been appointed as Chief Financial Officer of the Company. Ms. Samartseva is a designated chartered professional accountant (CPA, CA) with over twelve years of experience in financial reporting, compliance and corporate tax. She has provided comprehensive accounting and financial advisory services to a variety of public and private companies, including companies in the cannabis industry.
Ms. Samartseva fills the vacancy created by Zula Kropivnitski, who has left the Company to focus on other ventures.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Gaia Grow Corp.
Frederick Pels, Chief Executive Officer
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
CAUTIONARY AND FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the hemp industry in general such as operational risks in growing; competition; incorrect assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and government regulations. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release.
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