- Operating
in world’s two largest cannabis markets – California and Canada
- Cannabis
concentrate extraction service agreement inked with Cannabis Strategic
Venture subsidiary Pure Applied Sciences, Inc. to provide white label
services of high quality, ultra-purified cannabis extracts
- Construction
underway in California and Canada of large scale, purpose-built current
cGMP designed greenhouses for cannabis cultivation and production
- Supply
agreement with Canopy Growth Corporation to provide up to 90,000 kg of
cannabis over two years beginning in early 2019
Sunniva Inc. (CSE: SNN) (OTCQX: SNNVF), a
vertically integrated medical cannabis company headquartered in Vancouver,
Canada, is committed to delivering safe, consistent, high-quality products and
services through its wholly owned subsidiaries – Sunniva Medical Inc., CP
Logistics LLC, Natural Health Service Ltd. and Full-Scale Distributors LLC.
In an executive summary of Sunniva’s market potential,
Canaccord Genuity states, “Sunniva could become one of the larger compliant
producers in California heading into 2019 where more than 85 percent of product
is still not in compliance with current regulations.” The company’s strategy of
placing a high degree of importance on designing its facilities with innovative
technologies that allow for automation, low-cost cultivation and the ability to
maximize control/monitoring of production inputs and environmental factors is a
top value for investors looking at Sunniva, the report states (http://ibn.fm/dUISz).
Sunniva currently has two separate growing facilities under
construction. The first facility is at its campus in Cathedral City,
California, and the second is a 126-acre site at Okanagan Falls, British
Columbia, Canada. Sunniva broke ground in early May 2018 on the Okanagan Falls
Campus, while the Cathedral City Campus is further along in the construction
process. Through subsidiary CP Logistics, the company is close to completing
Phase 1 of a cGMP-compliant greenhouse facility in Cathedral City that will
have an estimated annual output of 60,000 kg of dry cannabis at capacity.
Sunniva expects operations at its California facility to begin in Q4
2018 (http://ibn.fm/GzxM9).
A previously reported take-or-pay supply agreement signed
with Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) (http://ibn.fm/KAan1) ensures
that Canopy will purchase approximately 45 percent of Sunniva’s annual
production capacity, representing 45,000 kg of dried cannabis annually,
starting in Q1 2019 or shortly thereafter. Canopy will also distribute
Sunniva’s branded products. Canaccord Equity issued a positive statement on
this agreement, noting, “We believe this take-or-pay agreement provides
medium-term revenue certainty while partnering the company with one of the
leading producers in Canada and allocating a sizable portion of the company’s
planned capacity (~45%) to a dedicated supply channel right off the bat.”
Sunniva also recently signed a cannabis concentrate
extraction services agreement between CP Logistics, LLC (“CPL”) and Pure
Applied Sciences, Inc. (“PAS”), a wholly owned subsidiary of Cannabis Strategic
Ventures, Inc. (OTC: NUGS). Under the agreement, CPL will perform white label
services producing high quality, ultra-purified cannabis extracts out of its
Sun-Oil Facility in Cathedral City, California, for PAS under the Pure
Organix™ brand name, which was recently acquired by Cannabis
Strategic (http://ibn.fm/1jvcN).
In addition to its planned cultivation and production in
California and Canada, Sunniva operates Canada’s largest network of cannabis
clinics (providing guidance and education to medical patients) and is a
private-label provider of vaporizers throughout several major U.S. states.
Sunniva’s seed-to-sale structure supports the company’s strategy of sourcing
potential acquisition targets to increase its level of vertical integration.
For more information, visit the company’s website at www.sunniva.com
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