Tilray® Invests C$7.5M in Québec-Based Cannabis Producer ROSE Lifescience Inc.

Business WireDecember 14, 2018
8:01 AM EST

NANAIMO, British Columbia — Tilray, Inc. (NASDAQ:TLRY), a global pioneer in cannabis production and distribution, today announced an investment in Québec-based cannabis producer, ROSE LifeScience Inc. (“ROSE”) and an exclusive sale, supply, distribution and marketing agreement between High Park Farms Ltd. (“High Park”), a wholly-owned subsidiary of Tilray, and ROSE. 

Tilray will subscribe for 41 Class “A” Common shares (12%) in the capital of ROSE for a subscription amount of C$7.5 million pursuant to a subscription agreement (the “Subscription Agreement”). At the time of closing of this subscription the only issued and outstanding equity of ROSE will be 344 Class “A” Common shares and there will be no outstanding options, warrants or other rights to acquire equity of ROSE. 

In connection with the subscription agreement, High Park and ROSE have entered into an exclusive sale, supply, distribution and marketing agreement to deliver High Park adult-use cannabis products in Québec including existing brand, Dubon™, which is exclusively available in Québec through the Société québécoise du cannabis (SQDC). The two companies may also collaborate on additional co-branded adult-use cannabis products or brands exclusively for this market. 

The investment in ROSE represents a commitment to increase supply to the Québec market and the opportunity to deliver consumers locally-grown products. ROSE has begun construction of a 54,000 square-foot cannabis cultivation facility on its land in Huntingdon, Québec and has applied for a Health Canada cultivation, processing and sales license. Once fully-licensed, ROSE will be the exclusive supplier of High Park’s adult-use cannabis products in the Québec market. 

“Tilray and High Park value our partnership with the SQDC and our shared commitment to creating a responsible and safe legal market for cannabis,” says Adine-Fabiani Carter, Chief Marketing Officer, High Park. “This investment in a Québec-owned and operated organization will enable High Park to better serve this partnership and the adult-use market in Québec.” 

About Tilray®

Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients in twelve countries spanning five continents. 

About High Park™ 

Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park was established to develop, produce, sell, and distribute a broad-based portfolio of adult-use cannabis brands and products. High Park is a wholly-owned subsidiary of Tilray, Inc., a global leader in cannabis cultivation, processing, and distribution. 

About ROSE

Founded by a group of seasoned executives with extensive experience in highly regulated industries, ROSE LifeScience is committed to ensuring that Québec benefits from the responsible production, sale and use of cannabis. 

ROSELifeScience’s cannabis and by-products will be of the highest quality, produced in its climate-controlled indoor facility, ensuring superior quality and consistent, affordable production year-round. As a Québec producer, ROSE will actively participate in economic development in Huntingdon, Quebec by creating, among other things, 300 direct jobs in its first five years of operation. 

Cautionary Note regarding Forward-looking Statements

This press release contains “forward-looking statements”, which may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, including statements related to Tilray’s investment in Rose and future collaborations between the two parties. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including assumptions in respect of current and future market conditions. Actual results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this press release, and, accordingly, you should not place undue reliance on any such forward-looking statements and they are not guarantees of future results. Forward-looking statements involve significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements. Please see the heading “Risk Factors” in Tilray’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 and the risks discussed in Tilray’s other filings with the Securities and Exchange Commission for a discussion of the material risk factors that could cause actual results to differ materially from the forward-looking information. Tilray does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

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Contacts

Media: Chrissy Roebuck+1-416-560-5712chrissy.roebuck@tilray.com
Investors: Katie Turner, +1-646-277-1228, Katie.turner@icrinc.com

Huntingdon hopes to become the « cannabis capital of Quebec »

Le mardi 11 avril 2017, 0h00

Processing cannabis for medical purposes has been approved country wide since 2014.

Will Huntingdon’s renaissance come about because of cannabis? That is what Mayor André Brunette is hoping when he talks about the project for a cannabis processing plant proposed by three Montreal promoters. 

Translated by Cathleen Johnston

This project, for an estimated $25 million, could see a 25 000 square foot plant constructed on town land. Brunette does not want to indicate the exact location in order to avoid any kind of speculation which might discourage other eventual investors interested in settling in the area.

He explained that the plant in question would be devoted to processing cannabis for therapeutic purposes. Extracted THC would be used to produce a variety of products such as capsules, oils and ointments for acquisition through prescription.

Three business men are backing this project; François Limoges, Paul Furfaro and Davide Zaffino. « These people are very serious and thorough in their approach, » stated Mayor Brunette. « The project is already quite advanced and is only waiting for approval from Health Canada. »

He explained that some twenty towns in Quebec were originally considered for this project. The promoters decided on Huntingdon because of the size of the water treatment plant and the availability of labour.

The promoters also employed the services of a lobbying company in order to gain financial support from the government of Quebec and in particular Investissement Québec.

They are also planning to hold two information meetings (French and English) in the coming weeks for citizens in the Huntingdon region.

Employees welcome

With the creation of some 50 jobs to start, which could increase to as many as 200 « well paying » positions, it goes without saying that this cannabis plant project has generated considerable hope among the authorities in Huntingdon, a town still feeling the effects of the textile plant closures in 2005-2006.

« It changes everything for us in Huntingdon, » said Mayor Brunette. « And that’s not counting other investments that could result because of the plant. »

Since changing the Law authorizing the use of cannabis for medical purposes, Health Canada has issued licences to 41 producers, including nine in British Columbia, 24 in Ontario and one in Québec; The Hydropothecary Corp. in Gatineau.

The evaluation process is still very strict. According to Health Canada, as of March 31, 2017, 1630 applications have been filed, 265 applications have been refused, 414 applications are being processed, 69 applications have been withdrawn and 841 incomplete applications were returned.

Proposed plant

-Production of cannabis by-products for medical purposes

-Estimated $25 million investment

-Possible creation of 50 to 200 jobs

-Waiting for approval from Health Canadahttps://www.journalsaint-francois.ca/huntingdon-hopes-to-become-the-cannabis-capital-of-quebec/

A $80 million plant in Huntingdon for cannabis production

Mario PitreLe lundi 15 octobre 2018, 11h22

A $80 million plant in Huntingdon for cannabis production

François Limoges, Davide Zaffino and Brian Stevenson from Rose Science Vie officially broke ground together with Mayor André Brunette. 

Crédit photo : Pierre Langevin

Work began recently at a property on the Ridge Road in Huntingdon to build a cannabis processing plant that will cost an estimated $80 million. The project represents some 300 jobs over five years.
Mayor André Brunette was clearly thrilled to announce this project on Tuesday, October 9 alongside business partners from entreprise Rose ScienceVie. Negotiations for the project began three years ago.
“Finally, the Rose ScienceVie file has been cleared! We wanted this particular project,” Brunet stated. “The project will be completed over several months and will provide employment for many local workers. For a municipality like ours, this is a major project!”
François Limoges, one of the three promoters, explained that the project will be built in two phases. The first involves constructing a 55 000 square foot building at a cost of $31.6 million and the creation of some 100 jobs notably for office, marketing, customer service, production and maintenance personnel.
The business has obtained all the necessary authorization from Health Canada for the plant to produce medicinal cannabis which includes dried cannabis, or oils and other extracts used for making a variety of products.
The second phase involves building a 100 000 square foot addition to the plant for $49.3 million. The Rose ScienceVie promoters expect to produce 6000 kilos of cannabis during their first year of operation. The plan is to be in operation for the summer of 2019.
With the new law legalizing the sale of cannabis, the producers anticipate obtaining authorization from Health Canada to produce recreational cannabis and to eventually supply the Société Québécoise du Cannabis.
“We got a fantastic welcome from the elected officials in Huntingdon,” confirmed Limoges; “real partners who were patient and followed us through our recognition procedure with the federal authorities.”

The Rose ScienceVie cannabis production plant will be located on chemin Ridge. (Photo courtesy of Rose ScienceVie)

He also ensured that the business would rely on local suppliers whether for fertilizer or various types of equipment useful for production. He pointed out that Rose ScienceVie was one of the first cannabis producers created and controlled by Quebec investors.
The business ensures the highest quality cannabis and derivatives that will be produced following rigorous protocols in a climate-controlled indoor facility.

Rose ScienceVie project in Huntingdon
Phase1
– A $31.6 million investment
-one hundred jobs
-A 55 000 sq. ft. building
Phase 2
– A $49.3 million Investment
-two hundred additional jobs
-100 000 additional square feet
(Translated by Cathleen Johnston)https://www.journalsaint-francois.ca/a-80-million-plant-in-huntingdon-for-cannabis-production/

Huntingdon rêve d’une usine de transformation du cannabis

Un projet d’usine de transformation du cannabis fait planer le maire d’Huntingdon, emballé par la possible création de 150 emplois dans cette municipalité dévitalisée de la Montérégie, a appris La Presse.

Le projet de 25 millions de dollars, qui n’avait pas filtré jusqu’à présent, est celui d’un trio d’hommes d’affaires de Montréal réunis dans une société à numéros. L’installation ferait l’extraction des substances actives du cannabis, dont le fameux THC, « à des fins médicales ».

Des usines semblables ailleurs au pays produisent ainsi de l’huile de cannabis.

« Ça va être un vent de fraîcheur ces 150 emplois-là », a affirmé en entrevue le maire d’Huntingdon, André Brunette. 

« Depuis les fermetures d’usines de textile en 2005-2006, on travaille très fort pour attirer des emplois durables pour nos citoyens. […] Alors oui, on est d’accord avec le projet. »

— André Brunette, maire d’Huntingdon

Si le maire Brunette est plein d’espoir, l’usine n’est pas à la veille d’isoler sa première molécule de THC. Le bâtiment qui doit l’accueillir n’est même pas sorti de terre.

« On est en attente de l’émission d’une licence de Santé Canada », a indiqué Nathalie Vallée, chargée des relations publiques pour les promoteurs du projet. Eux-mêmes n’ont pas accepté la demande d’entrevue de La Presse ni de dévoiler le nom de leur projet. Un permis de construction sera ensuite demandé. « Les délais pour nous, c’est une boîte à surprise », a ajouté MmeVallée.

La firme Paradigmes affaires publiques vient de s’enregistrer au Registre des lobbyistes afin de faire progresser le projet. Les promoteurs voudraient obtenir « un soutien financier à déterminer sous forme de subvention ou de garantie de prêt » pour la réalisation du projet. Ils comptent s’adresser à Investissement Québec, à la ministre de l’Économie Dominique Anglade et au ministre de la Santé Gaétan Barrette.

« C’est énorme »

Mme Vallée ajoute que sa firme a été mandatée pour prendre contact avec les conseillers municipaux d’Huntingdon, ainsi que pour organiser des rencontres d’information avec les citoyens.

Le maire Brunette s’est dit confiant devant le niveau de préparation des promoteurs. Et surtout par les emplois dont ses citoyens ont cruellement besoin.

« Ils sont en contact avec des gens pour la sécurité et la sécurité des employés. C’est certain que ça va être clôturé. Il va y avoir des caméras. Ils n’ont pas oublié grand-chose. Le dossier est tellement bien fait. »

— André Brunette, maire d’Huntingdon

Et les emplois, « c’est énorme ». L’élu demande justement à Santé Canada de presser le pas et au gouvernement du Québec de donner sa bénédiction au projet.

En plus de promouvoir la main-d’œuvre abondante et motivée, les services municipaux ont pu inciter les promoteurs à planifier s’installer dans la ville, a indiqué M. Brunette. « Ici, à Huntingdon, on a une usine de traitement des eaux et on a la capacité de fournir la Ville de Québec. L’usine [aura] besoin de beaucoup d’eau et nos infrastructures le permettent », a expliqué le maire Brunette.

La société à numéros à l’origine du projet réunit les hommes d’affaires Paul Furfaro, Davide Zaffino et François Limoges. « C’est un projet sur lequel [ils] travaillent depuis maintenant deux ans », a indiqué Mme Vallée.

Il s’agirait de la deuxième usine de ce genre à voir le jour au Québec. Une autre est située dans l’Outaouais.

http://plus.lapresse.ca/screens/aec93179-ffd0-4a34-8784-7ad7262463fc__7C___0.html

Une usine de production de cannabis en construction à Huntingdon

12 octobre 2018

Les travaux de construction de l’usine ont déjà débuté. On peut apercevoir une grosse pelle mécanique à l’œuvre sur un terrain de 700 000 pieds carrés, situé sur le chemin Ridge en face de l’hôtel de ville de Godmanchester. Il s’agit de la construction de la future usine de production et de transformation de cannabis Rose Science Vie. Les travaux s’échelonneront sur 8 mois.

Rose Science Vie est une entreprise créée et contrôlée par des fonds québécois. François Limoges est un des fondateurs de l’entreprise avec Davide Zaffino et Brian Stevenson. Ces trois chefs d’entreprises cumulent respectivement une solide expérience en production de tabac, en produits pharmaceutiques et en développement immobilier.

L’usine comprendra des installations intérieures à environnement contrôlé garantissant une production constante. Elle compte produire des feuilles de cannabis séchées, plus des huiles et des extraits entrant dans la composition de divers produits. 

Le marché visé est le secteur médical et récréatif canadien. Le siège social de l’entreprise sera à Huntingdon.

«C’est un projet d’envergure qui aboutit après 3 années de démarches soutenues avec les promoteurs, dit André Brunette, le maire de Huntingdon. En tant que producteur licencié québécois, Rose participera activement au développement économique de notre région en créant jusqu’à 300 emplois directs au cours de ses premières années d’activités. Il s’agit d’un investissement de 80 millions $ sur 5 ans.»

Rappelons que la production et la distribution du cannabis sont régies par Santé Canada et la Société québécoise du cannabis.

Denise St-Germain, correspondante bénévole du Haut-Saint-Laurent.https://www.cestmaville.com/une-usine-de-production-de-cannabis-en-construction-a-huntingdon/