The Company will operate the extraction assets within Stigma Grow's cultivation and processing facility, located in Red Deer, Alberta. The extraction staff will be retained and integrated into the Stigma Grow operations with a focus on expanding the entire Stigma Grow product line. This will provide the Company with three extraction methods (hydrocarbon, ethanol, solventless) to address current and future demand. The low-temperature extraction will preserve natural cannabinoids, increase yields and eliminate many of the operating costs traditionally associated with alternative processes.
This new methodology will allow the Company to bring forward a variety of new products to the cannabis and hemp markets that have not been altered by high heat or other solvents — which can degrade the quality of cannabinoids. In addition, this will allow the Company to develop new intellectual property, in anticipation of the legalization of new products pursuant to the amendments to the Cannabis Act coming into force on October 17, 2019. The Company intends to submit its notice to produce and sell these products as soon as possible upon legalization.
The acquisition of Full Spectrum Labs will allow Stigma Grow to manufacture unique, clean and clear products for consumers that will be among the highest quality and potency in the market, said President & CEO, Travis McIntyre. Stigma intends to leverage this technology, and the insight provided by our skilled and experienced staff, to target consumers that are looking for high-quality product variations. The Company also believes the addition of this IP showcases our continued focus on products that will lead the industry in both innovation and quality. The difference is clear; we are preparing for the future of cannabis.
Under the terms of the agreement, CanadaBis will issue 6,666,666 common shares priced at $0.30 per share, subject to regulatory approval. The shares issued are subject to certain share sale restriction provisions over 24 months.
Stigma Grow currently operates 22,000 sq/ft of production space and plans to expand this area to 66,000 sq/ft later this year. The Company received a standard cultivation and processing license from Health Canada on March 8, 2019 and has recently harvested its second crop. Stigma is currently working on developing and promoting a strong Alberta brand focused on catering to high-quality experiences. Proudly offering a craft product with optimal cannabinoid profiles, Stigma is the first Health Canada-licensed producer operating in the Red Deer area.