- Health Canada approves conversion of Supra THC Dealer’s Licence pursuant to new Canadian Cannabis Act
- RotoGro is progressing to relocate the Supra THC operations to the proposed 44,000 square foot facility in Caledon, Ontario, Canada
- Proposed 44,000 square foot facility will produce 12,000 – 15,000 kg of dry cannabis flower per annum
- On-going engagement by Cannabis Compliance Inc. with Health Canada to relocate operations and to establish Standard Cultivation
- Conversion of the Dealer’s Licence is the first step in transferring the Cannabis licence to RotoGro and positions the company to capitalise on the enormous growth and profits associated with the Canadian cannabis industry
Roto-Gro International Limited (“ASX:RGI”, “RotoGro” or the “Company”) is pleased to announce the approval by Health Canada of the conversion of the Dealer’s License held by Supra THC Services Inc. (“Supra” or “Supra THC”) from the Narcotic Control Regulations of the Controlled Drugs and Substances Act (Canada) to the recently enacted Cannabis Act (Canada) and Cannabis Regulations (Canada). Conversion of the Dealer’s License is the part of the definitive share purchase agreement (“SPA” or “Share Purchase Agreement”) between RotoGro and Valens GroWorks Corp. (“CSE:VGW” or “Valens”) to acquire all of the issued and outstanding shares in the capital stock of Supra THC Services Inc. (“Supra” or “Supra THC”) (see ASX announcement dated October 29th, 2018).
With the conversion to the Cannabis Act and the Cannabis Regulations complete, the Company will continue working with CCI and Health Canada to progress the change of address and change of ownership required to complete closing with Valens. In parallel, the Company will ensure the key resources for the cultivation facility are security cleared with Health Canada and the regulatory authorities as well as lodge the necessary security plans, floor plans and standard operating procedures to fulfil the requirements for Standard Cultivation at the Cultivation Facility. Although the Company cannot confirm the timeline for certain steps with Health Canada and the regulators, it is anticipated these steps will be complete during Q2 & Q3 of 2019 to allow for buildout of the facility during Q4, 2019, with first crops to be harvested during Q1, 2020.
About Supra THC
Supra THC is a wholly-owned subsidiary of Valens (a Canadian publicly-listed company located in Kelowna, British Columbia, Canada (https://www.valensgroworks.com/) which specializes in the processing of cannabis into pure extracts and oils.
To date, Supra THC has operated its business pursuant to a Dealer’s License issued by Health Canada in accordance with the Narcotic Control Regulations of the Controlled Drugs and Substances Act (Canada). Supra THC’s Dealer’s License permits the possession of cannabis and related active ingredients, in addition to the production of extracts for the purpose of analysis. The Company engaged Cannabis Compliance Inc (“CCI”) (https://www.cannabiscomplianceinc.com) to coordinate the license conversion to the Cannabis Act (Canada), which is now complete.
With the completion of this conversion, the Company will continue to work with CCI and Health Canada to relocate Supra THC’s operations from the province of British Columbia to the province of Ontario, and to amend the Dealer’s Licence to permit additional cultivation methods at the proposed 44,000 square foot cultivation facility located in Caledon, Ontario, Canada (“Cultivation Facility”). The Cultivation Facility will produce 12,000 – 15,000kg of dry cannabis flower per annum as currently designed.
Authorised Activities Under the new Cannabis Act and Cannabis Regulations
Dealer’s Licenses were previously issued by Health Canada pursuant to Section 9.2 of the Narcotic Control Regulations of the Controlled Drugs and Substances Act (Canada). The Cannabis Act (Canada) and the corresponding Cannabis Regulations which were enacted on October 17, 2018, legalise the recreational use of cannabis nationwide in Canada. This new legislation also controls and regulates the production, distribution and sale of lawful cannabis in Canada. Amendments to the Narcotic Control Regulations will remove references to cannabis and convert existing Dealer’s Licenses to an equivalent license pursuant to the Cannabis Regulations.
Pursuant to the Cannabis Regulations and its Dealer’s License, Supra THC is permitted to conduct Analytical Testing, Research, Production, Sale and Distribution of lawful cannabis. In addition to these permitted uses, the Company will apply for an amendment to this license to permit Standard Cultivation.
Pursuant to the Cannabis Act (Canada) and the Cannabis Regulations, once the Company is provided Standard Cultivation approval from Health Canada, the license will provide for cultivation, propagation and harvesting of cannabis plants, the sale of harvested material to other licence holders. In addition, Licensed cultivators are authorized to package and label cannabis plants and seeds for sale to authorized sellers or distributors.
Managing Director of RotoGro, Michael Carli states, “The acquisition of Supra THC is an impressive step forward in the Company’s strategic growth plan to establish itself as a global leader in the cultivation of lawful cannabis and perishable foods. Health Canada’s approval of the conversion of the Supra THC Dealer’s License from the Controlled Substances Act to the Cannabis Act confirms our reputable standing with the governing bodies and legislative authorities. With the completion of this conversion, we look forward to continuing our working relationship with Valens and CCI to execute on relocating operations to the proposed facility in Caledon, Ontario and amending the license to include standard cultivation activities.”