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AgraFlora Organics announced that its JV partner Propagation Services Canada, has executed its first propagation supply agreement.

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Under the terms of the agreement, Propagation Services will supply Alta-Sun Samson Holdings Corp., a wholly owned subsidiary of Cabbay Holdings Corp., with high-CBD cannabis plants for its 5-acre outdoor grow operation on Enoch Cree Nation land near Edmonton, Alberta.

Additional Information:

Company: AgraFlora Organics International Inc.,
Website: http://www.agraflora.com
Stock Symbol: CSE: AGRA
Date Published: Jan 2, 2019
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

AgraFlora Organics International Inc., a growth oriented and diversified international cannabis company, announced that Propagation Services Canada, its joint venture partner has executed its first propagation supply agreement.

Under the terms of the agreement, Propagation Services will supply Alta-Sun Samson Holdings Corp., a wholly owned subsidiary of Cabbay Holdings Corp., with high-CBD cannabis plants for its 5-acre outdoor grow operation on Enoch Cree Nation land near Edmonton, Alberta.

Alta-Sun has the potential to increase its growing area from 5 acres to 160 acres in 2020, where it intends to develop an outdoor cannabis cultivation facility and will apply for a standard cultivation license under the Cannabis Act in Canada.

Andrew Morin, Head Grower at Alta-Sun Samson Holdings and son of the former Chief of Enoch Cree Nation, stated: "Having the ability to acquire high quality propagation plants for our outdoor cannabis operation near Edmonton, AB is a significant advantage for our business. We can focus our efforts on the growing the highest quality cannabis for our primary customers without the overhead of planting and propagating our own cannabis seedlings. The timeline for AgraFlora's retrofit of their large-scale greenhouse works well with our application for a cultivation license and we look forward to a long and mutually beneficial partnership with AgraFlora and Propagation Services Canada."

Propagation Services Canada is in the process of retrofitting a large-scale greenhouse complex in Delta, BC.

The fully funded retrofit of the 2,200,000 square foot complex is to be completed in three phases:

• Phase 1 includes the retrofit of 350,000 square feet, including 100,000 post-production facilities, with completion scheduled for the 2nd quarter of 2019;
• Phase 2 includes an additional 1,450,000 square feet to be completed by the 4th quarter of 2019;
• Phase 3 consists of 400,000 square feet scheduled for completion in the 2nd quarter of of 2020.

The Delta greenhouse complex uses advanced growing systems for greenhouse HVAC, watering and lighting, including its own natural gas co-gen energy plant which provides cost effective electricity for lighting and heating.

The result is a highly efficient and one the most cost-effective growing operation in the industry.

Derek lvany, President and CEO, AgraFlora Organics International, stated: "With the first phase of the retrofit of the 2,200,000 sq. ft. greenhouse complex scheduled for completion mid-2019, we are taking the necessary steps of establishing a customer base for our medical cannabis flower and propagating plants. Cabbay Holdings is Propagation Services Canada's first propagation customer and follows on the recently announced medical cannabis supply agreement with Namaste Technologies. 2019 is shaping up to be a banner year for AgraFlora and we will continue to expand the pipeline of premium customers for our high-quality cannabis products."

In addition to the joint venture with Propagation Services, AgraFlora Organics owns an indoor cultivation operation in London, Ontario.

The shares are trading at $0.26.

This chart only covers a short period, as the company was formerly called PUF Ventures.

For more information, please visit the company’s website, www.agraflora.com, contact Derek Ivany, President and CEO, at 800-783-6056 or email ir@agraflora.com.



I’m Samantha Deutscher for Investmentpitch Media