Wayland Group to Explore Strategic Alternatives to Maximize Shareholder Value Including the Spinout and/or European List of its International Assets

Wayland Group to Explore Strategic Alternatives to Maximize Shareholder Value Including the Spinout or European List of its International Assets

Wayland Group (CSE:WAYL) (FRANKFURT: 75M) (OTCQB:MRRCF), a worldwide, vertically integrated cultivator and processor of cannabis, today announced that its Board of Directors has initiated a process to explore a wide range of strategic alternatives, including, but not limited to analyzing the possible spin-out and/or European listing of its international assets in an effort to unlock the value of the provider’s vast global asset portfolio, as well as its underlying domestic Canadian assets. Any Spinout Transaction of the International Assets could include the Provider’s European, Latin American, and Asia-Pacific operations.

The Company strongly believes in its current strategy; however, it does not think its current share price accurately reflects the worldwide portfolio Wayland has, and continues to create.

“We have demonstrated our capability in predicting future markets and working systematically to put supply chain in place, with some of the lowest transaction costs for global acquisitions as well as organic growth and partnerships.  Our exponential growth model has tremendous potential, since it is built on the solid foundation we’ve laid from five decades of organizational learning as a licensed producer in Canada. This has enabled us to grow into one of five companies with EU-GMP certification together with having all of the requisite cultivation and processing permits in Canada. It is time for us to capitalize on the biggest future cannabis market in the world and concentrate our efforts in the health and healthcare markets to accomplish our vision of improving life through cannabis,” stated Ben Ward, CEO of Wayland.

Canaccord Genuity Corp. has been retained to serve as the Company’s financial adviser related to the strategic review procedure.

There can be no assurance the strategic review will lead to the completion of any trade or any other alternative. The Company hasn’t set a timetable for completion of this review process, and it does not intend to comment further unless a specific trade or alternative is approved by the Board of Directors, the review procedure is concluded, or it is otherwise determined that other disclosure is acceptable.

Our management team has done a terrific job of building a state of the art cultivation facility in Langton and securing significant distribution agreements with several of the Provinces, while at the exact same time assembling an impressive portfolio of international assets.  Our end goal, however, is to translate that into value for our customers and we’re confident that the results of our strategic review and possible spin-out of our global assets will be important steps to accomplish that. ”

European Assets

Germany
Wayland has many active initiatives in Germany that give the Company a distinct advantage in the German and European markets. The Company is the only organization in the world that has a facility prepared for national cannabis cultivation. It is currently being utilized to process industrial hemp from the business ’s adjacent 164-hectare hemp operation where the Company recently completed their first crop yielding over 120,000 kg of raw flowers. Once processed, the CBD distillate will be utilized for the Company’s recently launched nutraceutical business, MariPlant GmbH. Finally, the Company expects to receive their second EU-GMP certification for the Ebersbach facility in a matter of weeks, further strengthening Wayland’s medical manufacturing and distribution capacities.

Switzerland
Wayland’s second European cultivation site is situated in Regensdorf, Switzerland, a suburb of Zurich. The 60,000 square foot facility’s current production profile is roughly 2,000 kg of CBD flower annually. Wayland plans to upgrade this facility to bring it in line with the Company’s production standards from present GACP standards and increase capacity to 14,000 kg annually with the objective of developing their own CBD products for sale throughout Switzerland and the rest of the European Union. Wayland will locate its Active Pharmaceutical Ingredients (API) manufacturing site for its international operations in Switzerland, taking advantage of existing phyto pharmaceutical talent in country.

Italy
Wayland has a definitive joint venture agreement with CBD Italian Factory S.S., a firm of Group San Martino for its creation of high quality cannabis products in Italy. The Company expects that the joint venture will marry the best of both entities with world-leading technologies by Rockwell Automation paired with existing infrastructure in Piedmont, Italy, including agricultural experience and biogas electricity. This will permit the sustainable production of quality CBD and THC goods from a naturally derived fuel source. CBD Italian Factory S.S. and San Martino Group will bring mass-scale agricultural skills to the joint venture with a focus on local sustainable practices and experience in Biomass Energy production. The Company holds 50.1 percent of the joint venture while 49.9percent is held by CBD Italian Factory, with Massimiliano Umberto Signorini assuming the role of CEO for the new firm.

Malta
In July of 2018, Wayland’s program to Malta Enterprise to establish a business in Malta to fabricate finished dose clinical cannabis was approved. Malta will give the Company a unique advantage as Wayland will have the ability to import, extract, manufacture finished dose products, and distribute cannabis for medical purposes within Malta and the complete European Union. Malta Enterprise allows the enterprise to develop a wide variety of pharmaceutical goods and export them across the European Union, and as Malta is a member of the EU, certain VAT taxation are inapplicable to Malta Enterprise.

The company expects to be able to import cannabis to patients in the UK as early as March 2019.

Argentina
Wayland has entered into an agreement to purchase 819 hectares of existing developed agriculture land in San Juan Province in Argentina, which is the ideal micro climate for cultivation. The correctly has present mass scale irrigation, using runoff from the Andes Mountains, and generates 1,000,000 kg of wine juice, and 400,000 kg of olives annually.  Existing on site agronomists and farmers will take their knowledge of horticulture and use it to Wayland’s present world class system of cannabis cultivation. Outdoor cultivation will take place in present alfalfa fields, to supply Wayland with low cost inputs.  Initial extraction will take place in Argentina.

Colombia
The Company has entered into an agreement to acquire 100% of the outstanding shares of Colma Pharmaceutical SAS (“Colma”-RRB-, a certified producer of THC cannabis in Colombia, holding four permits for cultivation and processing on a leased premise in Ibaque, Colombia. Wayland intends to cultivate THC cannabis outside and yearlong with an infrastructure investment including 415,000 square feet of processing and clone and vegetation greenhouse facilities to encourage outdoor cannabis flower production of 125 hectares.

Australia
Wayland has entered into an agreement to acquire 50.1percent of Tropicann Pty Ltd. (“Tropicann”-RRB-, a privately owned Australian company located in Darwin, Northern Territory. It plans to build an outdoor grow facility to take advantage of the perfect cannabis cultivation climate with minimal environmental effect. The Company believes it can leverage a significant port in Darwin that provides access to important APAC markets.

The Company’s flagship facility is located in Langton, Ontario with cultivation, extraction, formulation, and distribution capabilities. The facility is a purpose-built cannabis production facility with an emphasis on automation and energy efficiencies. The Company partnered with Rockwell Automation to develop a fully automated system including the development of AI Data Grow, the Company’s artificially intelligent master grower. This allows Wayland to radically reduce its cultivation labour needs by roughly 90 percent of the industry average while also mitigating risks associated with infecting crops. The facility will be completed in 2 phases, the first of which will be approximately 225,000 square feet in size with 90,000 square feet of manufacturing and office space and approximately 135,000 square feet of grow space that will yield the Company roughly 65,000 kg of dried cannabis flower annually. Stage two will bring an extra 719,000 square feet of grow space online taking production capacity much greater than 100,000 kg per year.

Wayland’s Langton campus has been certified by the European Medicines Agency after receiving the certification of EU-Good Manufacturing Practices (“EU-GMP”-RRB-. EU-GMP certification allowed Wayland to sign the biggest ever medical cannabis export deal with Cannamedical of Germany, agreeing to offer the medical cannabis distributor with a minimum of 9,000 kg of product on a three-year period. Wayland is one of just five cannabis businesses in the world to obtain the EU-GMP designation that is another benefit the Company believes it has in the worldwide medical cannabis stadium as demonstrated with this large purchase order.

Provincial Agreements

  • Alberta: Supply Agreement with the Alberta Gaming, Liquor & Cannabis Commission (“AGLC”-RRB- to devote up to 3,375kg of cannabis merchandise for the Alberta market within the first six months.
  • British Columbia: Through a memorandum of understanding (“MOU”-RRB-, Wayland is a preferred licensed producer to the BC Liquor Distribution Branch (“BCLDB”-RRB- to initially supply approximately 3,622kg of non-medical cannabis to BCLDB within the first 12 months following legalization.
  • Ontario: Selected by The Ontario Cannabis Store (“OCS”-RRB- to supply a variety of safe, high quality cannabis products through its online store since launching October 17, 2018.
  • Brand Portfolio
    the business has taken a purposeful and consumer-centric approach to each of its brands/offerings, each supported and optimized with local customer research. Strains within each portfolio will match brand positioning and satisfy target customer needs and benefits.

    • Solara C: Designed for the modern, active customer who is looking to find solutions to help them live healthier/better without using more powerful pharmaceutical alternatives. This brand will be CBD-only and create a wide assortment of goods from beverages to topical creams with the expressed purpose of promoting a healthy, balanced lifestyle.
    • Kiwi: Designed for light users that are new to the group and looking to better understand Cannabis and its effects. The brand will exist to simplify and make the cannabis experience more relaxing and welcoming to the masses.
    • Northern Harvest: Designed for light / moderate users that like Cannabis as part of their active and social lives. The brand will exist to encourage a more natural and balanced approach to Cannabis with a focus on providing a fun and lighthearted experience.
    • High Tide: Designed for moderate to heavy users that enjoy the cerebral effects of Cannabis. This brand will produce high quality, high THC cannabis with the expressed purpose of pushing the limits of the THC experience.
    • Lost at Seed: Designed for moderate to heavy users that need only the best Cannabis money can buy. This brand provides highly desired and not possible to find strains only available on a limited assortment basis.
    • Rare Dankness: This spouse brand will be for experienced Cannabis users that are knowledgeable about breeds, potencies and profiles. It will offer a wide choice of premium award-winning breeds that consumers won’t even be able to find anywhere else.

    Maricann Group Inc., through its subsidiaries, is operating under the Wayland Group name. For additional details see the press release dated September 24, 2018.

    About Wayland Group

    Wayland is a vertically integrated cultivator and processor of cannabis. The Company was founded in 2013 and is based in Burlington, Ontario, Canada and Munich, Germany, with manufacturing facilities in Langton, Ontario where it operates a cannabis cultivation, extraction, formulation, and distribution business under national licenses from the Government of Canada. Wayland will continue to pursue new opportunities globally in its effort to improve lives through cannabis.

    SOURCE

    Published at Wed, 19 Dec 2018 15:39:46 +0000

    Posted in: Investing

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