Published: 25 September 2019
Written by Editor
World-Class Extractions Enters the Legal Recreational Market for Cannabis Extracts and Signs Joint Venture Agreement to Deploy Full Cannabis and Hemp Extraction & Processing Facility
TORONTO, ON / September 25, 2019 / World-Class Extractions Inc. ("World-Class") (CSE:PUMP)(FRA:WCF) announces its first multi-year joint venture agreement (the "Joint Venture") with FV Pharma Inc. (HUGE) (FSDDF) (0K9), a wholly-owned subsidiary of FSD Pharma Inc. ("FSD"). Under the direction of FV Pharma, World-Class will setup and manage the operations of "Cobra", a large capacity extraction and processing facility in Cobourg, Ontario, owned by FSD Pharma (the "Facility") to extract various cannabinoids and other valuable elements from cannabis and hemp plants.
The Facility will be deployed in multiple phases to satisfy the increasing market demand as the legal recreational market for cannabis extracts and extract-based products rapidly approaches. World Class and FSD each have a 50% interest in the Joint Venture. The initial phase, which is scheduled to commence production in December 2019, is comprised of several BOSS CO2 Extraction Systems as well as WCE's BEAST Ethanol Extraction System, along with all the ancillary equipment required for the preparation of the biomass, as well as refining and distillation processes. With ample room to expand, the Facility will initially have an extraction and processing capacity of up 5,000 pounds of biomass per day. As market demand increases, additional equipment will be deployed to accommodate the extraction and processing of up to 75,000 pounds per day.
The 620,000 sq.ft. facility, formerly Kraft Canada's production facility, is located about a one hour drive from Toronto. Equipped with numerous on-site resources, the Facility was built with logistical advantages, making the property a favourable location for third-party toll processing contracts. The Joint Venture will provide World-Class ongoing revenue.
This announcement marks a significant milestone for World-Class as the first multi-year joint venture agreement in preparation for the legalization of recreational cannabis extracts, edibles, and topical products which will be available to consumers in upcoming months. This agreement positions World-Class to quickly scale an operation as the BOSS CO2 Extraction System is delivered from Soma Labs Scientific pre-assembled.
Rosy Mondin CEO of World-Class stated, "World-Class is thrilled to be the official extractor of FV Pharma, while opening up our processing operations to other Canadian producers. The toll processing model is economical as license holders can create valued-added cannabis oil derivative products under their corporate brand(s) without major expenditures on in-house extraction machinery or requiring a processing license. This milestone is incredibly significant as World Class is now ready to accept new tolling contracts and officially begin to generate revenue in the near term."
Raza Bokhar MD, Executive Co-Chairman and CEO of FSD Pharma stated, "This is an important development for FSD Pharma, allowing FSD and World-Class to establish a processing center for on-site extraction of oil-based products and extracts at our Facility in Cobourg in 2019. Using FV Pharma's processing license, the Joint Venture can begin processing once the Boss Extraction Systems are installed and our agreement is finalized. This Joint Venture provides us with additional revenue opportunities as we process our pharmaceutical-grade cannabis flower into high-quality oil-based products to meet the increasing demand for such products in the medicinal space."
World-Class Extractions provides scalable extraction and processing solutions for the cannabis and hemp industries through two wholly-owned subsidiaries - Soma Labs Scientific and Greenmantle Products.World-Class develops advanced technology and processes for streamlined cannabis extraction, formulation and product development. World-Class is set to become an international leader and developer of industrial scale extraction and processing systems to produce high margin, quality cannabis products and premium consumer brands - from Green to Gold.
About FSD Pharma
FSD Pharma is focused on the research and development of novel cannabinoid-based treatments for several central nervous system disorders including chronic pain, fibromyalgia and irritable bowel syndrome, and on the development of the highest quality indoor grown, pharmaceutical-grade cannabis. The Company is licensed to cultivate cannabis in approximately 25,000 square feet.
FSD's wholly-owned subsidiary, FV Pharma, is a licensed producer under the Cannabis Act and Regulations, having received its cultivation license on October 13, 2017, and its full Sale for Medical Purposes license on June 21, 2019. FV Pharma intends to cover all aspects of the cannabis industry, including cultivation, legal, processing, manufacturing, extracts and research and development.
Investor Contact - World Class
Christina Rao & Daniel Mogil
World Class Investor Relations
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Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward-looking statements include, but are not limited to, the anticipated closing of any acquisitions by the Company, the continued growth and expansion of the Company's operations, and the receipt of regulatory approvals, including the approval of the CSE. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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SOURCE: World-Class Extractions Inc.