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Formerly Westleaf Inc.

Westleaf Provides Retail Update and Next Store Developments


Prairie Records stores coming to downtown Calgary, Edmonton’s University District and Banff National Park  

CALGARY, Oct. 28, 2019 /CNW/ – Westleaf Inc. (the “Company” or “Westleaf“) (TSX-V:WL) (OTCQB:WSLFF) is pleased to announce development of its proposed next three key Alberta retail locations for its award-winning retail concept Prairie Records which include a location in the historic Palace Theatre on Calgary’s Stephen Avenue, one directly beside the University of Alberta main campus in Edmonton and the Company’s flagship store in the heart of Banff, Alberta, one of Canada’s most visited tourist destinations (collectively, the “Retail Locations“). Opening of the Retail Locations is subject to final retail cannabis licence approval by Alberta Gaming, Liquor and Cannabis (“AGLC“).

Westleaf Logo (CNW Group/Westleaf Inc.)

“We have always maintained our Prairie Records retail brand would be a premium cannabis retail experience, and these three locations are premium retail locations,” said Scott Hurd, President and CEO of Westleaf. “These three stores check off all the boxes of our retail concept, high foot traffic locations in urban settings and resort destinations, as well as being in Alberta, which continues to lead the country in legal cannabis retail.”

The Company’s Prairie Records branded cannabis stores combine the inherent connection between music and cannabis in a highly immersive retail experience. The Prairie Records stores were recently awarded top Canadian cannabis retailer at the Grow UP Conference and Expo. The retail stores are an integral part of Westleaf’s vertically integrated strategy providing the Company a valuable portal to the consumer as well as an outlet for its own branded products which are expected to come to market in the coming months.

Further details on the Retail Locations now in development follow:

  • Palace Theatre: Situated at the centre of Stephen Avenue (219 8th Avenue SW) in downtown Calgary, this store will be part of the historic Palace Theatre which opened its doors in 1921. Now a busy music venue at the heart of a pedestrian mall which hosts up to 30,000 pedestrians on a busy day. The Palace Theatre Prairie Records store is expected to be only one of two cannabis stores on the busy four block pedestrian stretch of Stephen Avenue;
  • University of Alberta: The first Prairie Records in the provincial capital will be directly beside the University of Alberta main campus (8623 112 St. NW) in the trendy Garneau district. The U of A has a student population of close to 40,000 in addition to the many permanent residents in the area;
  • Banff National Park: The Banff Prairie Records location is expected in the historic King Edward Hotel (137 Banff Avenue), adjacent to the busiest street corner in the town. Banff is one of Canada’s most visited tourist locations and attracts around 4 million visitors from around the world each year.

“These three stores, combined with the four Prairie Records stores currently open, three in the Saskatoon region and one in Calgary, will enhance our retail footprint,” noted Adam Coates, Westleaf’s Chief Commercial Officer. “But given these prominent and premium locations, we anticipated that they will have an exceptional impact on our brand and our Company.”

Certain of Westleaf’s current Prairie Records stores continue to record margins that put them amongst the industry leaders since opening. The Saskatoon Broadway and Saskatoon Stonebridge Prairie Records locations have recorded gross sales over the last 30 days of $249,945 and $283,351 respectively, and profits over that same period of $93,400 for Broadway and $106,633 for Stonebridge respectively, or a 37.5% combined gross margin.

The cannabis retail landscape in Canada continues to improve month over month with StatsCan reporting that in the month of August retail sales totaled $127.3 million across Canada and 18.6% month over month increase. The retail environment in Alberta continues to lead the country, with now more than 300 retail stores licenced and August sales for the province totaling $24.8 million, a 16.3% month over month increase. With its open retail market, Alberta has accounted for more sales than any other province in the country since legalization, edging out Ontario which has three and half times the population but only a fraction of the stores open. In the first 11 months of sales, there has been a total of $807 million sold in legal retail and online stores across Canada.

About Westleaf Inc.

Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s Health Canada licensed extraction and processing facility, The Plant, is expected to produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open, including the Retail Locations; (ii) the construction of Westleaf’s production facilities and the timing for completion of same; (iii) commencement of production at Westleaf’s production facilities; (iv) commencement of operations at the Plant, its capacity to manufacture and extract cannabis derivative products and corresponding scalability, its ability to provide a competitive advantage by being adaptive to consumer needs and material revenue that may be derived from its operations; (v) products and brands to be produced from Westleaf’s production facilities and the products and services that Westleaf plans to offer; (iv) timing of provincial and federal regulatory approvals, including AGLC approval for the Retail Locations; (vii) timing of legalization of certain derivative products and the anticipated benefits and impact on Westleaf; (viii) changes in cannabis consumption habits among Canadians; and (ix) the processing and production capabilities of Westleaf’s extracting and cultivation facilities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licenses to retail cannabis products, including final approval for the Retail Locations; review of Westleaf’s production facilities by Health Canada and receipt of licenses from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Westleaf Inc.

Westleaf Receives Health Canada Standard Processing Licence


The Company’s large-scale cannabis extraction facility, The Plant, can now begin processing and product formulation in time to meet expected demand of Cannabis 2.0

CALGARY, Oct. 15, 2019 /CNW/ – Westleaf Inc. (the "Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF) is pleased to announce its large scale cannabis extraction, processing and product formulation facility, The Plant by Westleaf Labs, received a standard processing licence from Health Canada (the "Standard Processing Licence") and is ready to start operations immediately. The Standard Processing Licence will allow Westleaf to process bulk cannabis to create and sell derivative products through a variety of commercial arrangements.

"This is a major catalyst for Westleaf to generate material revenue through the sale of derivative cannabis products and by offering contract manufacturing services," said Scott Hurd, President and CEO of Westleaf. "The issuance of the Standard Processing Licence is timely as Westleaf prepares to launch its cannabis 2.0 products upon legalization which is expected on October 17, 2019".

Cannabis 2.0 is the legalization of the next wave of recreational and medicinal cannabis products currently set to begin in Canada on October 17th, 2019. It will allow cannabis manufacturers and retailers to provide consumers with a wide range of new cannabis products including high quality and safe vape cartridges, edibles, concentrates and other oil products.

The 15,000 square foot Phase I of the facility has been built to European Union good manufacturing practice (GMP) specifications and is designed to process up to approximately 65,000 kgs of dried cannabis per annum into anticipated high quality edibles, concentrates, vape and oil products, including Westleaf’s first in-house product, a line of vape pens under the brand General Admission, as well as products under the Company’s other house brands, Backstage, and wellness brand, Loon. The Plant has an additional 45,000 square feet of space to expand extraction capacity as well as add additional product lines based on consumer preferences once the additional products are licensed post October 17, 2019.

With the pending legalization of cannabis derivative products, Westleaf anticipates strong industry wide demand for efficient extraction, processing and formulation capacity. The scalability of The Plant ensures Westleaf is well positioned to capitalize on the expected demand growth for contract manufacturing, tolling arrangements, white labeling, and in-house product formulation. In July 2019, Westleaf signed its first extraction contract with Delta 9 for white label derivative cannabis products worth at minimum approximately $4 million per annum with an option to increase up to $16 million per annum.

"The Delta 9 contract is the first of what we hope to be a number of similar arrangements between licensed producers, product developers and others who are preparing for the coming legalization of derivative cannabis products such as vapes, edibles, topicals and beverages, or what is called Cannabis 2.0," noted Hurd. "We are preparing Westleaf to be in a strong position to capitalize on the expected spike in consumer demand for these products later this year and into 2020 and beyond."

In addition, Westleaf has now satisfied ATB’s condition precedent (receipt of Health Canada standard processing licence) to draw the previously announced $3.7 million of additional capital in the form of a $2.7 million term loan and a $1.0 million line of credit for working capital purposes.

Westleaf Operational Updates:

  • Prairie RecordsNamed the top retailer in Canada by the Grow UP Conference and Expo, Prairie Records is generating revenue through three stores in the Saskatoon region and one in Calgary, with up to 20 more locations under development including downtown Calgary and Edmonton and a flagship store in the tourist centre of Banff, Alberta;

  • Thunderchild Cultivation – Phase I (80,000 square feet) of the large-scale cultivation facility in Battleford, Saskatchewan is fully funded and on track for completion and submission of its Health Canada evidence package for a cannabis standard cultivation licence by the end of 2019.

About Westleaf Inc.

Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s Health Canada licensed extraction and processing facility, The Plant, is expected to produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open; (ii) the construction of Westleaf’s production facilities and the timing for completion of same; (iii) commencement of production at Westleaf’s production facilities; (iv) commencement of operations at the Plant, its capacity to manufacture and extract cannabis derivative products and corresponding scalability, its ability to provide a competitive advantage by being adaptive to consumer needs and material revenue that may be derived from its operations; (v) products and brands to be produced from Westleaf’s production facilities and the products and services that Westleaf plans to offer; (iv) timing of provincial and federal regulatory approvals; (vii) timing of legalization of certain derivative products and the anticipated benefits and impact on Westleaf; (viii) changes in cannabis consumption habits among Canadians; (ix) anticipated revenue from contractual arrangements with Delta 9; * draw down on credit facilities with ATB; and (xi) the processing and production capabilities of Westleaf’s extracting and cultivation facilities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licenses to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licenses from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Product Formulation Reactors at The Plant by Westleaf Labs in Calgary, Alberta, October, 2019. Photo by Todd Korol. (CNW Group/Westleaf Inc.)

Supercritical cannabis CO2 extractor at The Plant by Westleaf Labs, Calgary, Alberta, October, 2019. Photo by Todd Korol. (CNW Group/Westleaf Inc.)

SOURCE Westleaf Inc.

Westleaf Receives Additional $5.7 Million of Capital from ATB Financial


Company will use additional capital to accelerate its growth of Prairie Records retail store locations and to operationalize its extraction and manufacturing facility

CALGARY, Oct. 2, 2019 /CNW/ – Westleaf Inc. (the "Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF), is pleased to announce that it has signed amendment agreements to two of its existing credit facility commitment letters with ATB Financial ("ATB") resulting in an additional $5.7 million of capital available for use by the Company. Westleaf has increased its term loan on The Plant, its fully completed extraction, manufacturing and product formulation facility, by $2.7 million and has secured a $1.0 million revolving credit facility to assist with working capital provided that any draw downs in relation thereto can only be made after final receipt of a standard processing license for The Plant from Health Canada. In addition, the credit facility related to the construction of Westleaf’s cultivation facility in Battleford, Saskatchewan has been amended to reduce its restricted cash requirement by $2.0 million.

Westleaf Cannabis Inc. (CNW Group/Westleaf Inc.)

"ATB continues to be a leader in the lending space for cannabis companies and remains a strong supporter of Westleaf and its strategic plan" said Taylor Ethans, Chief Financial Officer and Head of M&A. "From the beginning of Westleaf, we have been focused on maintaining an efficient capital structure with low cost, traditional senior debt to help accelerate our growth strategy while limiting dilution for existing shareholders. With the increase in non-dilutive capital, Westleaf intends to accelerate its footprint of additional Prairie Record retail cannabis stores and to provide for additional start-up capital for The Plant."

About Westleaf Inc.

Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s extraction and processing facility, The Plant, will produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.  

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open, including accelerating Westleaf’s footprint of Prairie Record retail cannabis stores; (ii) the use of capital available to the Company from ATB, including the timing available to draw-down on credit facilities with ATB; (iii) the use of additional capital that is available to the Company from ATB; (iv) receipt of a standard processing license for The Plant from Health Canada; (v) the construction of Westleaf’s production facilities and the timing for completion of same. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licences to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licences from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Westleaf Inc.

Westleaf Issues Common Shares to Xabis


CALGARY, Sept. 17, 2019 /CNW/ – Westleaf Inc. (the "Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF) is pleased to announce that pursuant to a Consulting and Extraction Services Agreement between a subsidiary of Xabis Inc. ("Xabis") and Westleaf Labs LP, a wholly owned subsidiary of the Company (the "Agreement"), the Company has issued 909,090 common shares ("Common Shares") in the capital of the Company to Xabis at a deemed price of $0.44 per share (the "Tranche 1 Shares").

Westleaf Cannabis Inc. (CNW Group/Westleaf Inc.)

Under the terms of the Agreement, which was previously announced by the Company on June 4, 2019, Xabis will provide technical expertise to the Company’s Calgary-based extraction, processing and manufacturing facility ("The Plant"), in exchange for equity-based compensation of up to $1,000,000 worth of Common Shares, payable in three tranches over a three year period and a cash payment consisting of six monthly fixed fee service-based cash payments estimated to amount to approximately $138,000. The quantity of the Common Shares to be issued under each tranche will be determined by dividing the equivalent dollar amount to be received under the respective tranche by the five day volume weighted average trading price of the Common Shares determined on the trading day immediately preceding the date on which the Common Shares are to be issued or such other method as may be permitted by TSX Venture Exchange policy.

The issuance of the Tranche 1 Shares is the first of three tranches of Common Shares to be issued to Xabis pursuant to the Agreement.

About Westleaf Inc.

Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s extraction and processing facility, The Plant, will produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) the construction of the Thunderchild cultivation facility and the timing for completion of same; (ii) products and brands to be produced from Westleaf’s production facilities and the products and services that Westleaf plans to offer; (iii) amounts payable to Xabis under the Agreement (including the issuance of Common Shares to Xabis as consideration for services provided to Westleaf by Xabis) and the timing thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licences to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licences from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Westleaf Inc.

Prairie Records Tops the Charts: Named Top Cannabis Retailer in Canada at Grow UP


CALGARY, Sept. 13, 2019 /CNW/ – Westleaf Inc. (the "Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF) is proud to announce its Prairie Records retail stores have been named top cannabis retailer in Canada at the GrowUP Conference & Expo. Singing a different tune in cannabis retail, the award win is a testament to how Prairie Records is offering Canadian’s a truly unprecedented purchasing experience.

Prairie Records Store Interior (CNW Group/Westleaf Inc.)

"It is extremely gratifying to have Prairie Records be recognized at one of the industry’s largest events and to be able to stand out amongst a field of very worthy retail competitors," says Adam Coates, Chief Commercial Officer at Westleaf and Retail Brand Strategist for Prairie Records. "We set out to make waves in a sea of sameness by creating an immersive experience like no other in the marketplace, and we are pleased and honoured to receive this, the first Grow UP Conference retail award."

Ten companies were nominated in the Grow UP retail category at this year’s event, the first for the industry. Among the nominees were independent stores and well-known national chains. Prairie Records was recognized based on delivering an unparalleled consumer purchasing experience and creating a welcoming brand for cannabis consumers.

Westleaf has four Prairie Records stores open, three in the Saskatoon region and one in Calgary, which is hosting its grand opening tomorrow, September 14. The concept combines the tactile and immersive feel of a vinyl record store with a cannabis purchasing experience. Information about the cannabis strains and strengths are presented on album covers and the customer is enveloped in a warm and welcoming retail experience. The staff are well versed on the product offering and provide educational opportunities for both the experienced cannabis connoisseur as well as the novice consumer.

About Prairie Records
Focusing exclusively on densely populated neighbourhoods, high traffic areas, and tourist destinations, Prairie Records retail stores will be situated in some of the most premium retail locations across the country. The foundation of the retail concept is ingrained with a desire to create a unique cannabis purchasing experience through tactile in-store features and product offerings that celebrate the relationship between music and cannabis. Westleaf continues to be committed to becoming a leader in the Canadian cannabis retail market.

About Westleaf Inc.
Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s extraction and processing facility, The Plant, will produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.  

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open; (ii) the construction of Westleaf’s production facilities and the timing for completion of same; (iii) commencement of production at Westleaf’s production facilities; (iv) the Plant providing a competitive advantage by being adaptive to consumer needs; (v) products and brands to be produced from Westleaf’s production facilities and the products and services that Westleaf plans to offer; (iv) timing of provincial and federal regulatory approvals; (vii) timing of legalization of certain derivative products; (viii) changes in cannabis consumption habits among Canadians; and (ix) the processing and production capabilities of Westleaf’s extracting and cultivation facilities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licenses to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licenses from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Prairie Records Logo (CNW Group/Westleaf Inc.)

SOURCE Westleaf Inc.

Spinning a new, interactive cannabis retail mix: Prairie Records commemorates first Calgary store launch on September 14th


Celebrating community, music and cannabis, Prairie Records enters Calgary market with grand opening at its International Avenue location

CALGARY, Sept. 11, 2019 /CNW/ – Westleaf Inc. (the "Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF) is pleased to announce the opening of its first Alberta retail location. Calgary residents who are 18+ now have the chance to experience a new spin on cannabis retail through an immersive and inclusive in-store environment with the grand opening of Prairie Records‘ first Calgary location on Saturday, September 14th. The new Prairie Records store is located on one of the city’s busiest streets and in one of its most recognizable cultural hubs, International Avenue (17th Ave SE).

Prairie Records Interior - Forest Lawn - Calgary (CNW Group/Westleaf Inc.)

"This is an important next step for Westleaf as we expand in the prairie provinces and continue to build out our retail footprint in western Canada," explains Adam Coates, Chief Commercial Officer at Westleaf. "It also gives us an opportunity to introduce the unique Prairie Records brand to Alberta cannabis consumers, the country’s most advanced retail market. We believe based on our experience in Saskatchewan that our brand is going to be a winner and differentiate our retail experience from all others." 

In honour of the store’s official grand opening, Prairie Records is hosting musically-infused activities with a special performance by local musician DJ Sonidef and offering exclusive in-store specials and promotions from 1:00 p.m. to 8:00 p.m. Calgarians will have the opportunity to explore the new Prairie Records store which seeks to educate both first-time users and cannabis connoisseurs by sparking discovery and encouraging exploration in its welcoming and approachable musically-themed atmosphere.

In advance of the grand opening celebrations, media are invited to participate in private, in-store tours with Adam Coates on Saturday, September 14th from 9 a.m. to 12 p.m. If interested in booking a tour, please schedule an appointment prior to September 12, 2019 with Lauren Steeves at lauren.steeves@northstrategic.com.

What:    

Prairie Records’ International Avenue Grand Opening – must be 18+ to attend

When:        

Saturday, September 14, 2019 – 1:00 p.m. to 8:00 p.m.           

Where:     

Prairie Records: 4420 17th Avenue SE, Calgary, AB, T2A0T6

Who:      

Westleaf executives, Prairie Records staff, Calgary residents, local musicians and artists and influential community members.

 

*Please note, b-roll footage and photography opportunities can be arranged onsite at the grand opening on Saturday, September 14th.

About Prairie Records
Focusing exclusively on densely populated neighbourhoods, high traffic areas, and tourist destinations, Prairie Records retail stores will be situated in some of the most premium retail locations across the country. The foundation of the retail concept is ingrained with a desire to create a unique cannabis purchasing experience through tactile in-store features and product offerings that celebrate the relationship between music and cannabis. Westleaf continues to be committed to becoming a leader in the Canadian cannabis retail market.

About Westleaf Inc.
Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s extraction and processing facility, The Plant, will produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.  

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open; (ii) the construction of Westleaf’s production facilities and the timing for completion of same; (iii) commencement of production at Westleaf’s production facilities; (iv) the Plant providing a competitive advantage by being adaptive to consumer needs; (v) products and brands to be produced from Westleaf’s production facilities and the products and services that Westleaf plans to offer; (iv) timing of provincial and federal regulatory approvals; (vii) timing of legalization of certain derivative products; (viii) changes in cannabis consumption habits among Canadians; and (ix) the processing and production capabilities of Westleaf’s extracting and cultivation facilities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licenses to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licenses from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Prairie Records logo (CNW Group/Westleaf Inc.)

SOURCE Westleaf Inc.

Westleaf Inc. Announces Second Quarter 2019 Results and Update on Positioning for Cannabis 2.0


CALGARY, Aug. 29, 2019 /CNW/ – Westleaf Inc. (the “Company” or “Westleaf“) (TSX-V:WL) (OTCQB:WSLFF), released today its second quarter financial results for the fiscal year 2019, ending June 30, 2019 and provided an update on operations.

Westleaf Cannabis Inc. (CNW Group/Westleaf Inc.)

Key Highlights:

  • Westleaf completed construction on Phase I of The Plant, the Company’s large-scale extraction, processing and product formulation facility in Calgary (built to EU GMP specifications), which is now awaiting approval for a standard processing licence from Health Canada;
  • The Company completed two key strategic acquisitions – (i) Canndara, a cannabis retail company with prospective retail locations across Canada and (ii) acquiring its partner’s 50% interest in Westleaf Labs Inc., providing the Company with full control of The Plant extraction, processing and product formulation facility;
  • The Company acquired two retail locations in Saskatoon, Saskatchewan in two separate transactions and opened three Prairie Records retail locations in that province, as well as e-commerce, and is expecting to open a fourth store in Calgary on August 31, 2019;
  • The Company reported total revenue for the second quarter of $913,000, which represents revenue from three stores in the Saskatoon region open for partial portions of the reporting period;
  • On May 10, 2019, the Company completed a bought deal financing with a syndicate of underwriters for 12,000 convertible debenture units at a price of $1,000 for gross proceeds of $12 million;
  • Westleaf continued to strengthen its leadership team – Adam Coates, was promoted to Chief Commercial Officer; John Radostits of Edmonton and Cody Church of Calgary were appointed to the Board of Directors;
  • The Company is committed to a focus on overall cost reductions and financial prudence in all its business lines as it enters the second half of 2019.

“Overall, despite the headwinds in the public markets, we maintained our progress through the first half of the year to build and operationalize all three of our business lines with a focus on customer engagement and supplying high quality, consistent products to the market, in conjunction with preparing for the next phase of legalized cannabis products in Canada” said Scott Hurd, President and CEO of Westleaf Inc. “We are thrilled that we have fully completed construction of our extraction, processing, and product formulation facility, The Plant by Westleaf Labs, and we anticipate receiving our standard processing licence from Health Canada in time to manufacture a wide array of new derivative products for the start of Cannabis 2.0 in Canada. We anticipate that the introduction of a more diversified cannabis product offering across Canada will lead to a significant increase in the consumer base and related sales across our retail portfolio”.

Operating Highlights

The Plant – Preparing for Cannabis 2.0:

  • Construction on Phase I of The Plant, the Company’s wholly owned large-scale extraction, processing and product formulation facility (built to EU GMP specifications), was completed and is awaiting licensing from Health Canada;
  • Phase I of the facility is designed to process approximately 65,000 kgs of dried cannabis per annum into high quality oils, concentrates, tinctures, vape products and gel caps, including Westleaf’s first in-house product, a line of vape pens under the brand General Admission;  
  • The Plant is a highly strategic asset for the Company. With the pending legalization of derivative products, Westleaf anticipates strong industry wide demand for efficient extraction, processing and formulation capacity. The scalability of The Plant ensures Westleaf is well positioned to capitalize on the expected demand growth for contract manufacturing, tolling arrangements, white labeling, and in-house product formulation;
  • Westleaf signed its first extraction contract with Delta 9 for white label derivative cannabis products worth at minimum approximately $4 million per annum with an option to increase up to $16 million per annum. 

“The Delta 9 contract is the first of what we hope to be a number of similar arrangements between licensed producers, product developers and others who are preparing for the coming legalization of derivative cannabis products such as vapes, edibles, topicals and beverages, or what is called Cannabis 2.0,” noted Hurd. “We are preparing Westleaf to be in a strong position to capitalize on the expected spike in consumer demand for these products later this year and into 2020 and beyond.”

The Plant has an additional 45,000 square feet of space to expand extraction capacity as well as add additional product lines based on consumer preferences once the additional products are licensed post October 17, 2019. Westleaf will also produce products under its own in-house recreational brands General Admission and Backstage, as well as its wellness brand Loon. The Company expects to launch its line of vape products in Q4 2019.

Prairie Records – A Unique Retail Experience:

  • The Company’s experiential retail concept Prairie Records, which combines music and cannabis into a unique retail environment, launched with three stores in the Saskatoon region;
  • The two most recent Saskatoon stores recorded net revenue of approximately $491,000 for the last 30 days of operations and approximately $188,000 of gross profits equating to a top tier gross margin of 38%;
  • Westleaf received a retail licence for a fourth store to be opened in Calgary’s Forest Lawn district, with the store expected to be fully operational on August 31, 2019;
  • Westleaf maintains a portfolio of over 20 premium retail locations with development permits. The retail portfolio is being developed prudently with planned locations across Alberta including a flagship store in Banff, several in British Columbia and one in Manitoba. The Company is also exploring the potential of brand licensing agreements to bring the Prairie Records experience to Ontario;
  • The Company is currently in various stages of development on its retail portfolio, with a renewed focus on its many Alberta locations post the Alberta moratorium being recently lifted.

“We are thrilled to see that the response from consumers at our Prairie Records stores has been overwhelmingly positive. Month over month sales and transaction growth from all the locations has continued since opening. Unfortunately, the Alberta moratorium on issuing cannabis retail licences has delayed our buildouts and financial benefit to our shareholders” noted Adam Coates, Westleaf’s Chief Commercial Officer. “Now that the moratorium has been lifted and the backlog addressed, we look forward to opening more Prairie Records retail stores including our first in Calgary, which we expect to open on August 31, 2019.”   

Thunderchild Cultivation:

Construction of Westleaf’s purpose-built, GMP compliant, indoor cultivation facility near Battleford, Saskatchewan has progressed significantly in the second quarter. Phase I of the indoor grow operation will be a total of 80,000 square feet with 20 grow rooms and approximately 21,000 square feet of flower bench. Phase II will add an additional 50,000 square feet and bring total production capacity up to approximately 14,600 kgs per annum, based on an anticipated 60 grams yield per square foot per harvest and 5.8 harvests per year. Principle construction is expected to be complete before the end of 2019. The remainder of the facility construction is fully financed with low-cost, non-dilutive bank debt from ATB Financial and Westleaf believes it is uniquely positioned to provide high demand ultra-premium indoor flower to the market once operational.  

Outlook and Additional Information:

The Company is well positioned as the market enters an important next phase with the legalization of new cannabis products. Referred to as Cannabis 2.0, Westleaf expects that its strong position in extraction, processing, product formulation and retail will provide a stable platform to develop and market new products. In all other jurisdictions where recreational cannabis has been legalized, cannabis derivative products, such as vapes, edibles, topicals and other forms have become the preferred products and have brought a significant number of new consumers into the market.  

As of June 30, 2019, the Company had 142.7 million common shares outstanding, 23.5 million warrants outstanding, 7.9 million RSUs outstanding, and 3.0 million stock options outstanding. Subsequent to quarter end, the Company granted an aggregate of 600,000 Restricted Share Units (RSUs) to officers of the Company. All RSUs were granted in accordance with the Company’s compensation plan.

About Westleaf Inc.

Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of cannabis derivative products, wholly owned retail, as well as cannabis cultivation. The Company’s extraction and processing facility, The Plant, will produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.  

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open; (ii) the construction of the Thunderchild cultivation facility and the timing for completion of same; (iii) commencement of production at The Plant and anticipated timing of licensing from Health Canada; (iv) the Plant providing a competitive advantage by being adaptive to consumer needs; (v) products and brands to be produced from Westleaf’s production facilities and the products and services that Westleaf plans to offer; (iv) timing of provincial and federal regulatory approvals; (vii) timing of legalization of certain derivative products; (viii) changes in cannabis consumption habits among Canadians; (ix) the processing and production capabilities of Westleaf’s extracting and cultivation facilities; and * anticipated amounts of revenue expected to be received under Westleaf’s extraction contract. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licences to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licences from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Westleaf Inc.

Westleaf Receives License for Alberta Prairie Records Cannabis Store in Calgary


CALGARY, Aug. 7, 2019 /CNW/ – Westleaf Inc. (the "Company" or "Westleaf") (TSX-V:WL) (OTCQB:WSLFF), is pleased to announce that its subsidiary, Westleaf Retail Inc. has been granted a license by Alberta Gaming, Liquor and Cannabis (AGLC) for its first Prairie Records branded retail cannabis store in Alberta. The store located at 4420 17th Avenue SE, also known as International Avenue, is in the middle of one of the busiest commercial strips in Calgary.

Westleaf Inc. (CNW Group/Westleaf Inc.)

"This is a small but significant step in our development as a full spectrum cannabis company, with seed-to-sale operations," noted Adam Coates, Chief Commercial Officer at Westleaf. "We believe our celebrated Prairie Records concept with its unique experiential music tie-in will be a winner with customers in Alberta as it has been in Saskatchewan."    

Westleaf currently has three Prairie Records stores operating in Saskatchewan, two in Saskatoon and one in Warman. The Prairie Records International Avenue store in Calgary is the first of several planned for Alberta over the coming months and year. Prairie Records is a unique retail concept marrying the instinctual tie between cannabis and music to make a more memorable shopping and educational experience for the consumer whether they are brand new to the market or an experienced cannabis user. The customer is immersed in a welcoming and warm environment which encourages exploration and education into the range of products by using people’s personal knowledge of music genres and styles.

"Alberta is an important market for Westleaf and the Prairie Records brand, as it is not only home for the Company’s head office and it’s proposed major processing and extraction facility, but the province is leading the way in cannabis retail across Canada, providing cannabis consumers far more choice," said Scott Hurd, President and CEO of Westleaf. "We anticipate that the Prairie Records brand will stand out amongst the current crop of retailers."

The retail license comes on the heels of the completion of construction of Phase I of The Plant by Westleaf Labs, the Company’s large-scale cannabis extraction, processing and manufacturing facility in Calgary. The Plant is in final stages of preparing for operations awaiting an operating license from Health Canada to begin formulating cannabis derivative products and consumables which have been legalized, such as tinctures, oils and gel caps and those which are expected to be legalized later in the fall of 2019, such as edibles, vapes and topicals. Construction on the Company’s cultivation facility Thunderchild, near Battleford Saskatchewan, continues on-schedule for completion by the end of 2019.

About Westleaf Inc.

Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation. The Company’s extraction and processing facility, The Plant, is expected to produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.  

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open; (ii) the construction of Westleaf’s production facilities and the timing for completion of same; (iii) commencement of production at Westleaf’s production facilities; (iv) the Plant providing a competitive advantage by being adaptive to consumer needs; (v) products and brands to be produced from Westleaf’s production facilities and the products and services that Westleaf plans to offer; (iv) timing of provincial and federal regulatory approvals; (vii) timing of legalization of certain derivative products; (viii) changes in cannabis consumption habits among Canadians; and (ix) the processing and production capabilities of Westleaf’s extracting and cultivation facilities. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licenses to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licenses from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Westleaf Inc.

Westleaf Signs One Year $4 Million White-Label Cannabis Derivative Product Sale Agreement with an Option to Increase to $16 Million


CALGARY, July 24, 2019 /CNW/ – Westleaf Inc. (the “Company” or “Westleaf“) (TSX-V:WL) (OTCQB:WSLFF), is pleased to announce that its subsidiary, Westleaf Labs LP, has entered into a white labeling agreement with Delta 9 (TSXV: NINE)(OTCQX: VRNDF) to supply approximately $4 million of cannabis derivative products from its large-scale extraction and manufacturing facility located in Calgary, known as The Plant. Under the terms of the agreement, the contract will begin on October 1, subject to receipt of final license approval from Health Canada, and will carry an initial term of one year, whereby Delta 9 will be required to purchase a minimum of ~$4 million of various white labelled derivative products (such products are expected to include a mix of vape pens, gel caps, tincture oil, and edibles) with an option to increase such amount up to $16 million per year.

“This is an important milestone for The Plant and for Westleaf in securing contractual revenue,” noted Scott Hurd, President and CEO, Westleaf Inc. “This is the first of what we believe will be many derivative product sales and manufacturing agreements for our facility, Phase I of which is designed to process up to 65,000 kilograms of dried cannabis flower per year.” Hurd added that The Plant has an additional 45,000 square feet of space available for expansion which has the potential to increase its processing capacity in excess of 1,000,000 kilograms per year. Additionally, the expansion will greatly increase its capacity to formulate and produce the next wave of cannabis derivative products such as vapes, edibles and topicals, once they are legalized later this year.

“When looking at our suite of options for white-labeled derivative cannabis products, Westleaf stood out as the clear choice.” said John Arbuthnot, President and CEO of Delta 9. “Given Westleaf’s large menu of existing product formulations and distribution capabilities through their cannabis retail chain, Prairie Records, we view this agreement as positive step in expanding our Delta 9 branded product offerings and distribution footprint.”

Highlights

  • Contractual Revenue – Approximately $4 million of committed revenue stream (depending on mix of derivative products selected) expected to be received by Westleaf over the 12-month term with an option for Delta 9 to increase that amount up to $16 million per year and extend for an additional year on the same terms and conditions;
  • Retail Distribution – Given Westleaf’s wholly-owned distribution channels, the Delta 9 branded white-label products are anticipated to be sold through Westleaf’s chain of cannabis retail stores, Prairie Records, in addition to Delta 9’s retail in Manitoba and provincial cannabis regulatory bodies across Canada;
  • Leveraging Existing U.S. Product Formulations – The facility was designed by U.S. cannabis extraction industry leaders, XABIS, and Westleaf will leverage their existing product formulation expertise, which includes over 24 different form factors developed and over 200 individual  product SKUs produced, all of which remain exclusive to Westleaf within Canada;
  • Multiple Revenue Streams – Westleaf plans to secure additional white-labelling and contract manufacturing agreements with other third parties in addition to producing their own suite of branded derivative products, Loon, Backstage, and General Admission.

About Westleaf Inc.

Westleaf is a Canadian cannabis company focused on cannabis brands, extraction and production of derivatives, wholly owned retail, as well as cannabis cultivation . The Company’s extraction and processing facility, The Plant, will produce high quality and consistent cannabis derivatives and consumables, both for Westleaf’s in-house brands as well as white label products. Westleaf’s retail concept, Prairie Records, leverages the instinctual tie between recreational cannabis and music with stores operating or in development across Western Canada. The Company’s Thunderchild cultivation facility is scheduled for completion at the end of this year.

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, (i) retail cannabis stores that Westleaf plans to open; (ii) the construction of Westleaf’s production facilities and the timing for completion of same; (iii) commencement of production at Westleaf’s production facilities; (iv) the Plant providing a competitive advantage by being adaptive to consumer needs; (v) products and brands to be produced and distributed from Westleaf’s production facilities and the products and services that Westleaf plans to distribute and offer; (iv) timing of provincial and federal regulatory approvals, including the Processing License; (vii) timing of legalization of certain derivative products; (viii) changes in cannabis consumption habits among Canadians; (ix) the processing and production capabilities of Westleaf’s extracting and cultivation facilities; * anticipated amounts of revenue to be received under the Manufacturing Agreement; (xi) exercise of the option to purchase further derivative cannabis products under the Manufacturing Agreement; and (xii) the effective date of the Manufacturing Agreement. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licences to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licences from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; the ability of Westleaf’s production facilities to operate and perform at peak production; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE Westleaf Inc.

Westleaf Announces Appointment of New Board Director


Cody Church brings extensive financial and capital markets experience to the team

CALGARY, ALBERTA – July 4, 2019 – Westleaf Inc. (TSX-V:WL)(OTCQB:WSLFF) (“Westleaf” or the “Company”) is pleased to announce the appointment of Cody Church to the Board of Directors of the Company.

Mr. Church joins Westleaf after a successful career in finance in New York and Calgary. Most recently, Mr. Church was the co-founder and senior managing director of TriWest Capital Partners, one of the largest general buyout funds in Western Canada and one of the leading private equity groups in the country.
“Cody brings a vast knowledge of the financial markets, both from a private equity and public company position, and a far-reaching network within the financial community in Canada and the US,” said Stephen Mason, Founder and Executive Chairman of Westleaf. “Cody’s experience complements an already deep talent pool within Westleaf and we are excited to have him join our board.”

Mr. Church began his career with CS First Boston in 1993 and worked in the area of acquisitions and divestitures, high yield bonds, IPOs and re-financings. He then went on to work in private equity with EXOR America establishing a solid reputation for financing, structuring and deal flow, before returning home to Calgary to start TriWest in 1997. TriWest raised $1.3 billion of committed equity capital through five managed funds and generated exceptional returns across all five funds. Mr. Church retired from TriWest in 2018 and founded Clear North Capital where he serves as President and CEO.

Mr. Church is a graduate of Harvard University receiving a Bachelor of Economics, and is an active member of the community, having served on the board of the Calgary Stampede Foundation, the Alberta Children’s Wish Board, and the Calgary Parks Foundation among others. He was also named one of Canada’s Top 40 under 40 and is a guest lecturer at the University of Calgary’s faculty of Corporate Finance.

In connection with the appointment, Westleaf has granted 90,909 restricted share units (“RSUs”) to Mr. Church in accordance with its Restricted Share Unit Award Plan dated May 29, 2018. 84,745 RSUs were also granted to Mr. John Radostits in connection with his previous appointment. The RSUs will be granted as of the date of this news release, are valued at $0.55 per unit and will vest in a series of four equal tranches over 12 months following the date hereof.
Mr. Church joins fellow directors: Chairman Stephen Mason, CEO Scott Hurd, Delbert Wapass, John Radostits and independent members Robb McNaughton and Kareen Stangherlin.

About Westleaf Inc.

Westleaf is a vertically integrated cannabis company focused on innovative retail experiences and engaging cannabis brands as well as cultivation, production and extraction of cannabis products. Westleaf is rolling out a national retail footprint for its cannabis retail concept Prairie Records. Westleaf also has two significant production facilities – Thunderchild Cultivation in Battleford, Saskatchewan, which is scheduled for completion in 2019 and The Plant extraction, processing and product formulation facility in Calgary, Alberta, where construction was recently completed. Commencement of production at both facilities remains subject to receipt of an operating license from Health Canada. For more information, please visit www.westleaf.com or www.prairierecords.ca

More Information:
Bruce Leslie
Bruce.leslie@westleaf.com 403-801-7612

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Cautionary Statements

This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. This news release, forward-looking statements relate, among other things, to the development of retail cannabis stores, the construction of Westleaf’s production facilities and the timing for completion of the same, commencement of production at Westleaf’s production facilities, timing of required regulatory approvals, and the business and operations of the Westleaf. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to the ability to obtain or maintain licences to retail cannabis products; review of Westleaf’s production facilities by Health Canada and receipt of licences from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis, including the passing of regulations regarding derivative cannabis products; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; general business, economic, competitive, political and social uncertainties; the satisfaction of conditions precedent under Westleaf’s credit facilities; timing and completion of construction of Westleaf’s production facilities and retail locations; and the delay or failure to receive board, ATB Financial or regulatory approvals, including any approvals of the TSX Venture Exchange, as applicable. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Westleaf assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.