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TORONTO, Feb. 19, 2020
Leading facility will manufacture and extract the next generation of cannabis products from 48North, as well as contracted partners.
TORONTO, Feb. 19, 2020 /CNW/ - 48North Cannabis Corp. ("48North" or the "Company") (TSXV:NRTH), formally announced the creation of "Fume Labs", a strategic partnership between 48North and Humble & Fume ("humble+fume").
Building on the success of the previously announced extraction partnership and outdoor supply agreement between 48North and humble+fume, the two companies will combine forces to supply the legal cannabis vaporizer market in the most cost-effective and efficient manner.
Fume Labs, the cannabis-focused manufacturing and extraction entity birthed out of this strategic partnership will operate out of 48North's fully-licensed processing and propagation facility "Good:House", located in Brantford, ON ("Facility").
Fume Labs will service this strategic partnership in several mutually advantageous ways, including, but not limited to:
- the manufacturing of 48North's and humble+fume branded cannabis products, specializing in the concentrate extraction and refinement, formulation and filling, and packaging and distribution of vaporizer products;
- the contract manufacturing of cannabis products for other Licensed Producers and cannabis brands;
- Fume Labs will leverage humble+fume's extensive nationwide sales and distribution network, and act as the sales agency for products produced at the Facility; and
- Fume Labs will be a natural partner for 48North's Good:Farm, one of Canada's lowest-cost cannabis cultivation facilities located 10-minutes away from the Facility. To that end, Fume Labs will purchase 48North cannabis biomass, subject to certain conditions.
Both 48North and humble+fume will uniquely benefit from this strategic partnership, these benefits include, but are not limited to: industry-leading extraction expertise, a consistent input of high-quality and low-cost cannabis biomass, access to nationwide distribution and sales channels, and as a result will expect to see significant operational cost savings.
48North and humble+fume are each responsible for 50 per cent of the aggregrate shared expenses and each company will be entitled to 50 per cent of the net revenue from any vaporizer product finished at the Facility. 48North will be the party responsible for manufacturing, packaging, marketing, and promoting, and selling products from Fume Labs under the authority of its cannabis licenses.
In addition, 48North is pleased to announce that is has secured product listings for vaporizer products in new Canadian markets, including: British Colombia, Saskatchewan, Manitoba, and New Brunswick. As a result, 48North products will become available in 7 out of 10 Canadian provinces, representing over 95 per cent of the population.
48North Cannabis Corp. (TSXV: NRTH) is a vertically integrated cannabis company focused on the health and wellness market through cultivation and extraction, as well as the creation of innovative, authentic brands for next-generation cannabis products. 48North is developing formulations and manufacturing capabilities for its own proprietary products, as well as positioning itself, to contract manufacture similar products for third parties. 48North operates Good:Farm, a 100-acre organic cannabis farm which produces organic, sun-grown cannabis, securing a significant first-mover advantage in the production of low-cost, next-generation, extract-based cannabis products. In addition, 48North operates two indoor-licensed cannabis production sites in Ontario. 48North cultivates unique genetics at its wholly owned subsidiary, DelShen Therapeutics Corp. ("DelShen") and processes cannabis and manufactures next-generation cannabis products at Good & Green Corp. ("Good & Green"), both Licensed Producers under the Cannabis Act. 48North has a growing portfolio of brands that include Latitude, a women's cannabis platform (explorelatitude.com); Mother & Clone, a rapid-acting sublingual cannabis nanospray (momandclone.com); Avitas, a single-strain vaporizer cartridge (avitasgrown.com); Quill, a leader in the manufacturing of beautifully designed, lifestyle-focused and sleek vape products (quill.me) and Sackville & Co, a leading U.S.-based cannabis brand focused on design-forward cannabis accessories and CBD products (sackvilleandco.com).
humble+fume is the leading distributor of cannabis accessories in Canada. The Company offers a turnkey solution allowing the end-to-end production and distribution of cannabis concentrate products. humble+fume's customers include 85 percent of cannabis retailers in Canada, multiple Licensed Producers, and key government partners. The Company distributes accessories across all 10 Provinces and is a category leading supplier with the OCS, SQDC, NSLC, BCLDB, NBLC, PEIC. Humble & Fume Inc. also has a rapidly expanding presence in the United States, where it operates multiple distribution facilities which provide national sales capabilities. humble+fume offers the largest selection of grinders, papers, pipes, and vaporizers, as well as storage, cleaning and other accessories. Through Humble & Fume Inc's comprehensive North American sales and distribution network and over 20 years of operational experience and expertise, the Company has aspirations to become the preeminent distributor of cannabis-related products in North America.
DISCLAIMER & READER ADVISORY
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could," "intend," "expect," "believe," "will," "projected," "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current beliefs or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Please refer to the Company's SEDAR filings for further details concerning the risks associated with the Company's business. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
SOURCE 48North Cannabis Corp.
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