Vancouver, BC, August 24, 2020 – Benchmark Botanics, Inc. (“Benchmark” or the “Company”) (CSE: BBT).
The Company is pleased to announce that through its wholly-owned subsidiary Potanicals Green Growers Inc., (“Potanicals”), a holder of federal licenses to cultivate and sell cannabis under the Cannabis Act, has received its third cultivation license, effective August 7, 2020, from Health Canada for the Company’s joint venture YATAI & BBT Biotech Ltd. indoor and outdoor operations located in Pitt Meadows, BC (near the Company’s other joint venture 139000 BC Ltd, also in Pit Meadows)
The site is now fully licensed by Health Canada to possess cannabis, obtain dried cannabis, fresh cannabis, cannabis plants or cannabis plant seeds by cultivating, propagating and harvesting cannabis; and to sell cannabis in accordance with subsection 11(5) of the Cannabis Regulations. This license allows the Company to immediately begin cultivating and undertake R & D activities.
YATAI & BBT Biotech Ltd. is the result of the joint-venture agreement between Benchmark Botanics Inc and Zhejiang Yatai Pharmaceutical Co., Ltd. (“Zhejiang Yatai “). On May 27, 2019, the companies signed a definitive investment cooperation agreement, whereby the parties agreed to set up a new joint venture company in Canada. The new company will have a share capital of $14 million CAD, of which Zhejiang Yatai will invest $7 million CAD cash, accounting for 50% of the new company’s share capital; BBT was required to cause its wholly-owned subsidiary Potanicals Green Growers Inc. (“PGG”) to use its existing Health Canada issued license to apply for a license for property acquired by the new company (the “Facility”) for cannabis cultivation, processing, and sale thereon and in exchange BBT would receive 25% of the new company’s share capital (with a cash equivalent of $3.5 million CAD); and Rippington Investment (“RI”) w invest $3.5 million CAD, accounting for the remaining 25% of the new company’s share capital.
YATAI & BBT Biotech Ltd. is expected to start establishing cultivating operations in compliance with Health Canada and other regulators’ requirements and working toward its business objectives.
About Benchmark Botanics Inc.
Benchmark is a diversified multi-licensed cannabis producer focused on a three-way vertical business model targeting the medical, pharmaceutical and recreational markets in Canada. The Company’s business plan also includes a strategy to become a Canadian licensed producer to pioneer selling medical cannabis and hemp throughout Asia, in countries where it is legal to do so.
Benchmark is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the Company’s global footprint.
Benchmark’s 100% owned subsidiary, Potanicals Green Growers Inc. (“Potanicals) is a Health Canada licensed producer under the Cannabis Act and its regulations. The Company is producing at its indoor Peachland, BC Cannabis Complex and is constructing a Phase II expansion of an additional 10,000 square foot extraction facility there. Along with cultivation and production, the company’s Peachland BC facility also provides propagation, cultivation, cloning, storage, research and development, genetic improvements and is progressing towards CBD oil extraction and an EU-GMP certification.
As part of its expansion strategy, the Company and a joint venture partner acquired a second facility, a 4-acre Greenhouse Operation in Pitt Meadows, BC. The Company, through Potanicals, received its second cultivation license, effective November 29, 2019, from Health Canada for that Pitt Meadow greenhouse.
For further information, please visit the Company’s website at www.benchmarkbotanics.com or the Company’s profile at www.sedar.com.
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ON BEHALF OF THE BOARD OF
BENCHMARK BOTANICS INC.
/s/ “William Ying”
Chief Executive Officer
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this release.
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, the news release contains forward-looking statements and information relating to Company’s corporate strategy. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company’s ability to carry out its business plan. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.
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