MARI: “We’re committed to producing all natural cannabis, marrying our vision for ‘A World of Good’ with Julian Marley to deliver a curated and unique experience to our patients, and soon, the broader market,” Ben Ward, CEO of Maricann said. “JuJu Royal is an exclusive line of products currently offered in California and Colorado with carefully selected genetics, combined with solvent free extraction, delivering high-quality cannabis. We’re thrilled to offer this unique and quality differentiated experience to Canadians and Europeans (where legal).”
CCIM: Although we discussed your US exposure, can you advise more on the NanoLeaf Technologies pending acquisition. I understand you cannot discuss how the transaction is proceeding. What is the value added to Maricann and its shareholders should the announced acquisition close and the technology utilization prove successful?
MARI: “VESIsorb® is a proprietary delivery system which improves solubility and absorption in other fat soluble pharmaceuticals and nutraceuticals. We believe further testing will indicate the same improvement in absorption for cannabinoids, and that the VESIsorb® technology will form the core element of our advanced cannabinoid delivery platform” said Ben Ward, Maricann’s CEO. “We are therefore very pleased to incorporate NanoLeaf and its team into Maricann as we position ourselves to capitalize on increased consumer appetite for ingestible cannabis while also creating a better brand, all with the goal of enhancing shareholder value.”
CCIM: Your expansion in Langton, Ontario is being delayed due to groundwater encountered during the build. How does this delay affect your timeline to completion? Once completed, what is the expected total size (square footage) and annual production (dry and oils) anticipated to be? To the best that you can, in dollars and time, what is the combined impact of this event and the windstorm earlier in the year?
MARI: Maricann reported that it has experienced a construction delay in the flowering area of the expansion of its facility in Langton, Ontario caused by ground water encountered during the build. The construction delay is expected to result in out of pocket costs of approximately $765,000, a 2.47% overage for the Phase 1 Expansion. The construction delay in the flowering area will cause production from that portion of the project to be delayed by a maximum of 65 days due to Province of Ontario Ministry of the Environment permits required. The rest of the project remains on track and on budget, with mothering, cloning, and vegetation areas not affected and able to commence on schedule. With the mothering, cloning and vegetative areas unaffected, the Company believes it will still meet its first production target from its expansion in Q2 2018.
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