Up Cannabis To launch first Experiential Hub In Ontario Market

CANADA: Newstrike Brands, and its wholly-owned subsidiary, Up Cannabis Inc., announce that an Up Cannabis “Experiential Hub” will be featured prominently in Ontario’s first Spiritleaf store, expected to be located in Kingston, Ontario, in connection with a retail agreement entered into between Spiritleaf and a Ontario cannabis retail lottery winner.

Newstrike Brands Ltd--Up Cannabis to launch first Experiential H

Inner Spirit Holdings (“Inner Spirit”) (CSE: ISH) announced earlier today that Inner Spirit’s subsidiary, Spirit Leaf Inc., has entered into an agreement with one of the initial 25 cannabis retail lottery winners in Ontario to open a Spiritleaf cannabis retail store in Kingston.

The Spiritleaf store—the company’s first in the Ontario market—is planned to be located on Princess Street, in the heart of Kingston, and will feature an Up Cannabis Experiential Hub, or a “store-within-a-store,” designed to complement existing Spiritleaf design elements and provide education about cannabis, while showcasing both companies’ love of music and various community and charitable endeavors. An opening date of April 1st is targeted, to coincide with the launch of cannabis retail stores throughout Ontario.

“We are thrilled to partner with Spiritleaf and look forward to seeing an Up Cannabis Experiential Hub in one of the first retail stores in the province,” said Jay Wilgar, CEO of both Newstrike and Up Cannabis. “Up Cannabis’ ties to Kingston run deep as the hometown of our partners, The Tragically Hip, with many special milestones in our company’s history taking place there, and more to come. We’re excited to see the stars aligning for both our brands as the Ontario retail marketplace takes shape.”

The news follows the investment agreement and strategic alliance agreement entered into between Newstrike and Inner Spirit whereby each of the companies acquired equity interests in each other and provides for the retail distribution of Up Cannabis products and the creation and operation of Up Cannabis-branded customer lounges or Experiential Hubs in Spiritleaf stores, as regulations allow.   Inner Spirit currently has four Spiritleaf retail franchise stores with Up Cannabis Experiential Hubs currently operating in Alberta and Saskatchewan with a fifth outlet scheduled to open Calgary on February 14, 2019.

Up Cannabis’ Niagara Facility Licensed For Cultivation

CANADA: Up Cannabis has received a producer’s license to cultivate its 160,000 sq. ft. automated greenhouse site in the Niagara region.  The license has a term of three-years and permits production at the Niagara Facility by Up Cannabis of:

  • Dried and fresh Marihuana;
  • Marihuana plants and seeds;
  • Cannabis in its natural form: Cannabis Resin; and,
  • Cannabis oil (bottled).

Cultivation is expected to begin at the Niagara Facility during the current month of April 2018 with the first harvest to take place in the third quarter of 2018.  Production at the existing greenhouse is expected to reach the forecasted annual capacity of approximately 12,500 kg by the end of 2018.

“The receipt of this cultivation license marks the achievement of another critical milestone and showcases the ability of our production team to move from concept to cultivation effectively and quickly”, stated Jay Wilgar, Newstrike’s CEO.  “In just over eight months, we acquired, financed, engineered, permitted, retrofitted and now licensed this fully-automated greenhouse facility and, in doing so, we expect to have aggregate annual production capacity of approximately 15,000 kg coming online for the opening of the Canadian adult-use cannabis market.”

The receipt of the License relates to the existing and recently retrofitted greenhouse operation in Ontario’s Niagara Region.  As previously disclosed, Up Cannabis has received all land-use and related construction permits and expects to break-ground in the second half of 2018 to expand the Niagara Facility by adding an additional 160,000 sq. ft. of cultivation space as well as enhanced processing, packaging, shipping, storage and administrative facilities.   On completion of this planned expansion to the Niagara Facility, Up Cannabis’ aggregate annual production capacity is expected to increase to approximately 27,500 kg.