Company Provides Further Detail on Market Size and Other Metrics
TORONTO, ON / ACCESSWIRE / January 27, 2017 / The Canadian Bioceutical Corporation (the "Company" or "BCC") (CNSX: BCC, OTC PINK: CBICF) today announced that the common shares of the Company will begin trading on the Canadian Securities Exchange ("CSE") effective today, Friday, January 27, 2017 at 9:30 a.m. ET under the ticker symbol "BCC".
Per the Company's press release of January 23, 2017, the listing of BCC's shares on the CSE comes in conjunction with the acquisition of a highly profitable group of companies active in the Arizona medical cannabis market.
"The listing of our shares on the CSE, closing of our financing, and the completion of the acquisition creates a financially strong, profitable and liquid platform for growth, which we look to leverage in the execution of our aggressive expansion strategy," stated Scott Boyes, President and CEO of BCC. "We intend to pursue acquisition targets in the cannabis space, both within Arizona and other U.S. states, and have already identified a number of attractive options. Additionally, we have set in motion our programme to expand production capacity and drive organic growth. We are excited about the opportunities in this rapidly growing market, and we look forward to reporting on our progress in the coming quarters."
Further information in respect of the Company, including the date and parties to the agreements, terms, details of the financing, etc., is set out in the listing statement of BCC, which is available for review on SEDAR and the CSE website under BCC's profile.
In connection with the acquisition, the Company completed a US$27 million private placement. As of today's date, BCC has 224,491,154 common shares outstanding.
As previously announced on January 13, 2017, shares of the Company were delisted from the TSX Venture Exchange. Existing shareholders will be able to continue trading their shares normally on the CSE as at market open today.
Further to questions put to the Company by investors and at the request of IIROC, the Company is providing additional clarification on certain of the data provided in its January 23, 2017 press release.
Market share Arizona and cannabis market size projections
In its press release of January 23, 2017, BCC stated that its Arizona operations hold a market share of approximately 5.2%. Calculation of this market share is based on the following data:
Arizona operations revenues calendar year 2016: US$15.9 million
Arizona projected cannabis market size for calendar year 2016: US$269.1 million.
In its market share estimate, the Company has utilized a slightly more conservative number of 5.2%, as compared to the 5.8% these numbers would lead to conclude. Numbers were sourced from The State of Legal Marijuana Markets, 4th Edition, co-produced and co-published by ArcView Market Research and new Frontier Data. The same report was sourced for the numbers published on the Arizona market projections ($1.2 billion by 2020 if legalization of adult use is also implemented) and growth of the overall U.S. market to US$22 billion.
Nevada Option
As part of the transaction, the Company has acquired an option to purchase a controlling interest in GreenMart of Nevada, for US$9 million. GreenMart is a cultivation and wholesale business located in Las Vegas, Nevada, with a production capacity of approximately 1.6 million grams per annum of dried flower and 85,000 grams of concentrate per annum. The volume weighted average price in Nevada, as determined by the Weekly Wholesale Cannabis Futures & Spot Price Report, published by Signal Bay Inc., was $2,959/lb. or $6.52 per gram of dried flower. In its projections, the Company is using a slightly more conservative approach in view of its anticipation that wholesale prices may fall upon legalization of adult use, such as Colorado, and is using a more conservative price of US$2,500 per pound of dried flower. For these projections, the Company is utilizing a very conservative average wholesale concentrates pricing of approximately US$23/gram.
About The Canadian Bioceutical Corporation
BCC, an Ontario corporation, through its wholly owned subsidiaries in the U.S., provides management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to two medicinal cannabis enterprises in Arizona. While the Company does not directly own, possess or sell cannabis or cannabis-infused products, it does provide substantial support and exerts considerable influence over these two businesses, which are legally authorized to sell medical cannabis and derivative products.
Under the Health for Life ("H4L") brand, the two licensed dispensaries operate in the Mesa area, which is part of the rapidly growing Phoenix Metropolitan Statistical Area (MSA) with a population of 4.6 million people. Additionally, the Company supports the Melting Point Extracts ("MPX") brand. The award winning MPX products have facilitated rapid growth of the brand's wholesale business, now supplying a growing number of Arizona dispensaries.
The Company also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license. In addition, the Company will continue its efforts related to its legacy nutraceuticals business.
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, the Transaction and BCC's objectives and intentions. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause 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: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in BCC's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Although BCC believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, BCC disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
On behalf of the Board of Directors
The Canadian Bioceuticals Corporation
Scott Boyes, CEO
For further information please contact:
Scott Boyes, President and CEO
The Canadian Bioceutical Corporation
[email protected]
www.canadianbioceutical.com
Marc Lakmaaker
NATIONAL Equicom
T: +1 416 848 1397
[email protected]
SOURCE: The Canadian Bioceuticals Corporation