VANCOUVER, British Columbia, Dec. 14th, 2018 - Segra International Corp. ("Segra" or the "Company"), a cannabis agritech company, is pleased to announce it has leased a 3,500 sq. ft. industrial building in New Westminster, British Columbia. The Company has also mutually terminated its engagement of Canaccord Genuity Corp. ("Canaccord") as part of its recently announced postponement of going public.
The property will be retrofitted into a cannabis micropropagation lab for production of pathogen-free, true-to-type cannabis starter plantlets for Licenced Producers ("LPs"). Expected to begin operation in 2019, this Phase 1 facility will produce plantlets using Segra's industrial scale micropropagation technology. The Company is currently utilizing this technology through agreements with large-scale Canadian LPs. Segra's four initial Canadian LP partners include HEXO Corp., Agripharm Corp., and The Supreme Cannabis Company.
"Our pathway to revenue generation has been greatly eased by access to local, industrial-zoned production facilities," said Segra CEO Todd McMurray. "Segra will continue to pursue select industrial spaces for its Phase 2 production to address the growing global need for premium, reliable plant stock."
To date, cannabis production facilities in Greater Vancouver municipalities have mostly been limited to agricultural properties. The Company recently acquired a 20-acre agricultural property with the intention of repurposing the property for cannabis production. The operations timeline for this property factored construction, utilities upgrades, and permitting processes into the Company's production forecast. Due to recent zoning bylaw changes by the municipality, Segra will shift its Phase 1 production to newly accessible industrial spaces in New Westminster, circumventing the resource investment required to repurpose its existing agricultural property.
Further to the Company's decision to postpone its go public strategy, on December 11th, 2018, the Company and Canaccord mutually agreed to terminate the Subscription Receipts Offering that was previously announced on October 10th, 2018. The Company is exploring multiple options for future financing that would align with valuation targets of Segra and its shareholders.
About Segra International
Segra is a Canadian agritech company that specializes in cannabis Plant Tissue Culture and molecular genomics. The Company is developing industrial-scale laboratories to produce disease-free, robust, and true-to-type cannabis plantlets for licensed producers globally, and has assembled a world-class team of specialists in the fields of Plant Tissue Culture, agronomy, molecular genetics, regulatory compliance, and corporate finance. Segra's proprietary processes and cannabis ecosystem empower its clients to improve product quality and yield, rapidly expand operations, decrease liabilities associated with pests and diseases, and increase financial performance. Segra currently has agreements with four large-scale Canadian licenced cannabis producers, including HEXO Corp., Agripharm Corp., and The Supreme Cannabis Company Inc.
This news release includes statements containing certain "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). 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. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
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