Nov 14th, 22019 update to shareholders
Thank you for investing in Canbud Distribution Corp. In September 2019, we officially changed our name from Cannabis Clonal Corp to Canbud Distribution Corp to better reflect our hemp and CBD business segment.
We have been very active in moving our business forward, and at the same time working towards getting the company public.
Using our low capex land lease model, the Corporation has signed three land lease agreements with farmers/ land owners in Ontario. The agreements are for 3-5 year terms with renewal options. The 3 land parcels total 165 acres of tillable farming land.
The total cultivation acreage for 2020 is equivalent to 7.2 million square feet, which would produce conservatively about 19,800 kg of dried CBD flowers.
The chief scientific advisor Dr. Hasan, who is also a co-founder, visited Toronto in July 2019 to oversee clonal trial runs, which were successfully performed.
The Corporation is gearing up for the 2020 cultivation season. Specially designed Mobile Clonal Units are being constructed, and manpower planning is being executed. Related harvesting, flower trimming, and drying equipment are also being sourced.
The Corporation has also signed an LOI with a third-party extraction and processing company, and are in talks with a few more to have sufficient, cost effective processing capabilities for our hemp production.
Here are some other initiatives being worked on:
- Canbud has formed a skin care joint venture with 51% controlling ownership. We are currently working on the launch.
- Canbud is working with CannaProve to implement a Hyperledger fabric that will allow the tracking of the provenance, consistency, and quality of products. The solution will also allow Canbud to track its compliance to industry and regulatory requirements, to demonstrate transparency to stakeholders, and provide consistent potency and quality products to industrial buyers and end user consumers. CannaProve and Canbud have been awarded a pilot project implementation grant by the Ontario Centre of Excellence (OCE).
- Canbud is actively pursuing opportunities to develop additional IP through collaboration with Canadian universities and other institutions.
In parallel, we have been working with our appointed counsel to take the company public on the CSE. To increase the number of investors to minimum of 150 as part of the go-pubic requirement of the CSE, the company decided to do a distribution round in September at $0.10. The first distribution round was closed on Sept 25, 2019 as a private placement at $0.10 and 380,000 shares were issued. The company is continuing the distribution round until we have the requisite number of shareholders. Our goal is to be public and trading in the first quarter of 2020.
The Canbud team would like to wish each of you a great holiday season and a prosperous 2020.
Canbud Team – Steve, Robert, and Raj.