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NEWS RELEASE

VANCOUVER, British Columbia, May 7, 2019 – Organic Flower Investments Group Inc. (CSE: SOW)(FWB: 2K6)(OTC: QILFF) (“Organic Flower” or “OFIG” or the “Company”) is pleased to announce the Company has entered into a definitive agreement to acquire 80 per cent of 11353675 Canada Corp. d/b/a CanaBeer.

By way of an exclusive partnership agreement with a leading Toronto-based brewery (the “Brewhouse”), Canabeer holds claim to the exclusive formulation, manufacturing and distribution rights for all cannabinoid-infused beverages developed at said Brewhouse. Organic Flower and CanaBeer plan to commence product formulation and batch testing during Q2 of 2019, with forecasted commercial production slated to begin in Q4 2019.

Equipped with custom production equipment, a captive research, development and testing facility, as well as a state-of-the-art brewing infrastructure, the Brewhouse is armed with annual output capacity capabilities of 120,000 hectoliters (“HL”). By comparison, Canadian brewer Steam Whistle Brewing produces approximately 95,000 HL on an annualized basis.

The Brewhouse is nearing completion of major facility retrofit initiatives, which are projected to increase its output capacity to over 200,000 HL per annum. Upon completion of the retrofit, aggregate capital expenditures deployed on the Brewhouse build-out will exceed $20 million.

Comprised of a consortium of experienced brewery partners, the Brewhouse has completed multiple production runs for prominent European beverage brands such as:

  • Guinness
  • Augustiner
  • Innes & Gunn

Proprietary brewing processes and associated technologies firmly position the Brewhouse at the forefront of non-alcoholic, cannabinoid-infused beverage development. The Brewhouse’s experienced roster of brew masters have developed a suite of unique non-alcoholic beverage formulations; which better replicate the profile of traditional alcoholic beverages.

The acquisition of Canabeer provides Organic Flower with exposure to a collective of domestic and global brewery partners, as well as further crystalizes a leading production platform for the Company’s carbonated beverage products offering, including:

  • Non-alcoholic beers
  • Seltzers
  • Ready-to-drink (“RTDs”) beverages

In addition, the Brewhouse possesses the ability to package both steel kegs and plastic one-way kegs in a plethora of fittings, and is equipped 24-head rotary canning line, capable of packaging a variety of container dimensions at a rate of over 100,000,000 containers per year. The Brewhouse also boasts an adjoined tasting and viewing facility (the “Taproom”) affording Organic Flower the ability to showcase product launches, beer dinners, community events and gallery showings.

Joel Dumaresq, Chief Executive Officer and a Director of Organic Flower stated: “Organic Flower continues to differentiate itself from its peer group through the astute acquisition of a broad basket of downstream assets with exposure margin rich cannabis verticals. The acquisition of Canabeer further bolsters the Company’s position as Canada’s premier cannabinoid-infused beverage consolidation platform. According to Zion Market Research, the global cannabis beverage market is expected to grow by 15% CAGR over the next five years, to USD$4.5 billion by 2025. This exclusive partnership augments Organic Flower’s existing cannabinoid beverage production portfolio, including coffees, teas, and juices.

This is the most opportune time to be a first mover within the adult-format beverage market vertical; further substantiated by the pending October 2019, legalization of cannabis-infused edibles, which is anticipated to prohibit the combination of cannabis and alcohol. Our goal is to further supplement our growing stable of great-tasting alcohol-free, cannabinoid-infused beverages with the objective of capturing dominant market share”.

Under the terms of the definitive agreement, Organic Flower will acquire 80% of all the issued and outstanding shares in the capital of CanaBeer in exchange for an aggregate of 9,166,000 common shares in the capital of the Company, based upon the five-day VWAP of Organic Flower’s common shares for the five trading sessions prior to the announcement of the definitive agreement (the “Payment Shares”). The Payment Shares issuable on the acquisition of 80% of CanaBeer are subject to a hold period of four (4) months and one (1) day. The closing of this acquisition is subject to customary terms and conditions contained in the Definitive Agreement.

A finder’s fee is payable on this transaction.

ABOUT ORGANIC FLOWER INVESTMENTS

Leveraging strategic relationships, proprietary investments and exclusive partnerships with preeminent international cannabis cultivators and formulators for the development of best in class products and brands to be marketed and distributed throughout our global footprint.

Via its wholly owned subsidiary, Delta Organic Cannabis Corp (“DOC”), Organic Flower is launching one of the largest and most efficient cannabis facilities on the planet.

Organic Flower has assembled a unique portfolio of downstream and product formulation operations and assets including:

  • Exclusive cannabinoid-infused supply and distribution agreement with a premier Canadian Bottler (cannabinoid-infused beverages);
  • Agreement to acquire a Canadian CBD cosmetics/topicals manufacturing company, equipped with a vertically integrated, farm-to-face model (cosmetics and topicals);
  • JV with one of North America’s largest manufacturer and distributor of chocolate and sugar confectionary products (cannabinoid-infused edibles and functional foods); and,
  • Sole Canadian manufacturer and distributor of an innovative beverage dispensing cap technology, equipped with a proprietary cannabinoid delivery mechanism (cannabinoid-infused beverages);

ON BEHALF OF THE ORGANIC FLOWER INVESTMENTS GROUP INC. BOARD OF DIRECTORS

“Joel Dumaresq”

Joel Dumaresq

CEO, Director

+1 (604) 687-2038

info@sowcannabis.ca

 

Learn more about Organic Flower by visiting our website at: https://sowcannabis.ca/

THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

Notice Regarding Forward Looking Information:

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, the Company’s ability to secure distribution channels in international jurisdictions, competition and other risks affecting the Company in particular and the cannabis industry generally.

The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.