Sunniva Holdings Corp.

Sunniva Holdings Corp.

July 11, 2017 11:08 ET

Sunniva Subsidiary Granted 18 Medical Cannabis Cultivation and Dispensary Licenses, Exercises Option for 14 Acres to Build Large-Scale Production in Cathedral City

CALGARY, ALBERTA--(Marketwired - July 11, 2017) - CP Logistics LLC ("CP Logistics"), a wholly owned subsidiary of Sunniva Holdings Corp. ("Sunniva" or the "Company"), a North American provider of medical cannabis products and services, has been granted 17 cultivation licenses and one combined cultivation and dispensary license by Cathedral City in California. The Company has also exercised its right to purchase 14 acres of land in Cathedral City, increasing its holdings in Cathedral City to nearly 20 acres in total. It is intended that the land will be used by CP Logistics to construct Sunrise Campus, a large-scale purpose-built GMP greenhouse for the cultivation of medical cannabis.

"We are entering the California market with plans for a remarkably efficient and large-scale facility - one that will benefit from California's abundant natural sunlight to deliver low-cost, high-quality medical products at scale," said Dr. Anthony Holler, CEO of Sunniva. "The award of these licenses and additional acreage puts in place the essential elements for us to move forward with Sunrise Campus as we envision it."

Sunrise Campus will be constructed in two phases. Phase I, which is expected to break ground in Q3 of 2017, is scheduled for completion in the spring of 2018. The Company plans to break ground on Phase 2 of the facility in late 2018. Sunrise Campus Phase I is expected to produce more than 81,000 kg of dried cannabis per year. When complete, Phase II should add 45,000 kg of dried cannabis to the facility's annual production. Sunniva plans to dedicate more than half of its California production to oils, extracts and other derivatives.

"Sunrise Campus will be a GMP compliant facility, deploying the latest in technology and automation," said Dr. Holler. "Good Manufacturing Processes (GMP) are practices required in order to conform to the guidelines recommended by agencies that control authorization and licensing for manufacture and sale of food and drug products, and active pharmaceutical products."

A Cathedral City Architectural Review Committee (ARC) hearing for Phase 1 is scheduled for July 19, 2017. Following recommendations from the ARC, Sunniva may be required to make aesthetic changes to the exterior of the building or landscaping changes.

A Conditional Use Permit (CUP) hearing for Phase 1 is set for August 2, 2017. CUP hearings determine whether a conditional use permit is issued to allow commercial projects to commence construction. There is a 10 day period during which citizens of Cathedral City are allowed to file an objection. If an objection is filed, the decision is then passed on to City Council.

About Sunniva Holdings Corp.

Sunniva Holdings Corp. is a medical cannabis company committed to improving the quality of human life through its planned delivery of low-cost, high-quality medical cannabis and better access to physician-led therapies and delivery methods. Sunniva brings legitimacy to the nascent medical cannabis market through state-of-the-art technology, strict regulatory compliance, safety and education. The Company plans to cultivate, produce and distribute a broad range of solutions focused on patients' needs. Sunniva operates in British Columbia, Alberta, Saskatchewan and California. For more information please visit www.sunnivainc.com.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are "forward-looking statements." Forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. The forward-looking statements in this press release may include, without limitation, statements regarding the anticipated construction and timing of Sunrise Campus, the Company's belief that Sunrise Campus will be remarkably efficient, deploy the latest in technology and automation and deliver low-cost, high quality medical products at scale, the expected amount of production of dried cannabis from Sunrise Campus, and Sunniva's plans to dedicate more than half of its California production to oils, extracts and other derivatives. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. Such risks and uncertainties include, among others, dependence on obtaining regulatory approvals; acquiring and renewing licenses; not obtaining all necessary governmental licenses and permits to complete construction of its facilities in a timely manner, engaging in activities currently considered illegal under US Federal Laws; changes in laws; uncertainty of existing protection from federal prosecution; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry; regulatory or political change, securing and maintaining corporate alliances and partnerships; the need to raise additional capital and the effect of capital market conditions and other factors on capital availability. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this release. Please keep in mind that Sunniva disclaims any intention or obligation to update or revise such forward looking information.

Contact Information