Annual medical cannabis production capacity set to expand to 25,000 kgs by December 2019
TORONTO, Aug. 16, 2017 /CNW/ - Liberty Health Sciences Inc. (CSE:LHS) (OTCBB:SCQBD) ("Liberty" or the "Company") announced today that the Company entered into a purchase and sale agreement to acquire an additional 36 acres of land in Alachua County, Florida (the "Transaction") for $866,975.00 (USD) adjacent to their existing facility at Chestnut Hill Tree Farm. The purchase price paid in respect of the Transaction was funded from existing cash on hand. No additional permits or approvals are required in respect of the Transaction. The Company anticipates the Transaction closing on August 31, 2017.
"This land purchase represents a key piece of our aggressive expansion plan in the State of Florida," said George Scorsis, CEO and Director of Liberty Health Sciences Inc. "Securing an additional 36 acres of land positions Liberty for exciting growth over the next 24 months to serve the growing demand for medical cannabis in Florida."
According to state reports, Florida has seen a 60 per cent increase in the number of patients being treated with medical cannabis since June. Liberty expects this number to continue to grow exponentially due to more physicians recommending cannabis as a treatment option and an increase in qualifying medical conditions. The additional land will allow Liberty to increase production of medical cannabis over the next 18 months to meet growing patient demand and is expected to have a significant positive impact on local economic development in the north central region of Florida. Whereas the Company's current facility consists of 13,000 square feet of growing space and produces 700 kgs annually, the Transaction represents Phase I of a three-part expansion process for Liberty:
Part I: Purchase of additional 36 acres of Florida land at Chestnut Hill Tree Farm site.
Part II: Immediately doubling output and constructing adjoining Greenhouses to increase annual medical cannabis production to 2,800kgs with an additional 33,000 square feet of growing space by January 2018.
Part III: Expected to increase annual medical cannabis production to 25,000kgs with 435,600 square feet of growing space by December 2019.
"We're extremely pleased with this land purchase," said John Cervini, Director of Liberty Health Sciences Inc. "The extra space will go a long way to help meet the ever-growing demand for our high-quality, clean and safe pharmaceutical grade cannabis for Florida patients."
For more information on Liberty please visit www.libertyhealthsciences.com
About Liberty Health Sciences Inc.
Liberty Health Sciences Inc. ("Liberty") is an investor and operator in the medical cannabis market, capitalizing on new and existing opportunities in the United States. Liberty's stringent investment criteria for expansion maximizes returns to shareholders, while focusing on significant near- and mid-term opportunities. Liberty has an extensive background in highly regulated industries, with expertise in becoming a low-cost producer. Liberty leverages commercial greenhouse knowledge to deliver high-quality, clean and safe pharmaceutical grade cannabis to patients.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, expectations related to the Company's future expansion and growth strategies, the closing of the Transaction, the impact of the Transaction on local economic development and future demand for medical cannabis. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical marijuana industry in the United States generally, income tax and regulatory matters; the ability of Liberty to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
SOURCE Liberty Health Sciences Inc.