Vancouver, British Columbia–(Newsfile Corp. – December 2, 2019) – GreenStar Biosciences Corp. (CSE: GSTR) (OTC Pink: GTSIF) (“GreenStar”), is pleased to announce that its tenant partner Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) has completed the first phase of its expansion initiatives with the completion of several grow rooms at its existing facilities. This allows Cowlitz to produce its own high quality cannabis to meet its growing customer demands.
The first phase of Cowlitz’s expansion involved the set-up of four separate grow rooms in its facilities using LED lighting to ensure its cultivation operations are as efficient as possible resulting in reduced operating costs and higher overall margins. All of these grow rooms will be producing the highest “A” grade flower using Cowlitz’s own proprietary genetics. Cowlitz recently harvested plants from its first grow room and expects plants from the second room to be harvested by mid-December 2019. Cowlitz has two additional grow rooms established and expects crops from both to be harvested in the coming months. The addition of these fully functional grow rooms increases competitiveness, while significantly lowering product costs, especially in the premium cannabis market which commands higher prices.
“The first grow room production will hit dispensary shelves this month, and with three additional planned harvests, we expect to see significant growth in both revenues and operating margins”, said Rahim Rajwani, CEO and director of GreenStar. Rajwani added, “This additional supply will support strong continued sales and we look forward to Cowlitz achieving additional production and revenue milestones.”
Cowlitz operates in a mature yet growing Washington State market. In 2017 the cannabis sector generated US$1.486 billion in sales (per www.502data.com) and this figure is expected to grow to US$2.6 billion by 2020 (source: New Frontier Data U.S. Cannabis Report 2019). Cowlitz is a top five licensed processor in the state of Washington, having built a strong reputation by being proven operators providing quality products. Although Cowlitz has secured supply of quality cannabis through several strategic relationships, the company has seen increased demand for its high end products and has responded by launching its own production initiatives. The addition of its own production capability will support future expansion initiatives including the launch of additional brands and premium product offerings in the coming months.
The Company will provide additional information on expansion initiatives in due course.
GreenStar is a growth-oriented technology and services company that provides real estate, financial, management, IP and branding support to licensed cannabis businesses in the United States. GreenStar operates a growing portfolio of tenant partner companies in the United States. GreenStar applies refined strategies tested in the Washington State market to help partner companies reach their full potential. Based in Vancouver, BC, GreenStar intends to facilitate growth through acquisitions and development of additional assets, products and technologies in legal cannabis markets by leveraging its capital markets, branding and operational expertise.
Cowlitz is a leading processor, marketer and vendor in the Washington State recreational and medical cannabis market and is one of the largest independent buyers of dried flower, producing approximately 2,000,000 pre-rolls annually.
For further information please contact:
GreenStar Biosciences Corp.
Rahim Rajwani, CEO
Tel: (604) 834-9499
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Disclaimer for Forward Looking Statements
This news release contains forward-looking statements relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact, included in this release, including but not limited to statements regarding the future plans and objectives of the Company, anticipated production from additional grow rooms, grow rooms resulting in increasing competitiveness and significantly lower products costs, significant growth in revenues and operating margins, increased demand for Cowlitz products, launch of additional brands and premium product offerings, Cowlitz achievement of additional production and revenue milestones, expansion and future growth initiatives, future sales and revenues of Cowlitz, achievement of reduced operating costs and higher overall margins, and future growth of Cowlitz’s customer base are forward looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are risks detailed from time to time in the filings made by the Company with securities regulations. Readers are cautioned that assumptions used in the preparation of the forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including changes to the regulatory environment; and that the current Board and management may not be able to attain the Company’s corporate goals and objectives. As a result, the Company cannot guarantee that any forward-looking statement will materialize and the reader is cautioned not to place undue reliance on any forward-looking information. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made only as of the date of this news release and the Company does not intend to update any of the included forward-looking statements except as expressly required by applicable Canadian securities laws.
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