Gaia expands TRU Extracts laboratory and completes acquisition of Canna Stream
Vancouver, British Columbia – The press wire – July 07, 2021 – Gaia Grow Corp. (the “Company” or “Gaia”) (CSE: GAIA) (CNSX: GAIA.CN) (Frankfurt: GG0) has started the expansion of its extraction laboratory – TruExtracts (Calgary) Inc. (“TRU“). The square footage will increase from 11,672 square feet to 28,526 square feet. The additional floor space will be used to add more treatment rooms, extraction capacity and facilitate the deployment of the treatment technology developed by Canna Stream Solutions Ltd. (“CSS“).
All of the laboratory’s processing rooms are currently occupied for product manufacturing. The expansion is expected to meet the expected volume and ensure short-term extraction and production capacity.
“The expansion of TruExtracts is the first step in rolling out CSS and processing all of Gaia’s ground CBD,” said Frederick Pels, CEO of Gaia. “We are looking to take control of the cannabis extraction market, and with this expansion we will have the capacity to do so. I look forward to informing our shareholders as Canna Stream, TRU and Gaia work together to bring efficiency and sustainability to the cannabis industry.
“With the current processing space at full capacity, this expansion will allow the launch of a host of new products currently under development,” said Andre Sinclair, COO of TruExtracts. “The expansion also allows for a good integration of Canna Stream and gives us the footprint for extraction on an industrial scale. “
The Company also confirms that it has completed the previously announced acquisition of all of the outstanding share capital of CSS. In consideration for the acquisition of CSS, the Company issued 12,500,000 ordinary shares (the “Counterpart actions“) to existing shareholders of CSS at a deemed price of $ 0.10 per matching share.
The Company is independent of CSS and of each of its shareholders. The acquisition of CSS does not constitute a fundamental change for the Company, nor has it resulted in a change of control of the Company, within the meaning of applicable securities laws and the policies of the Canadian Stock Exchange. The counterpart shares are subject to resale restrictions in accordance with applicable securities laws until October 24, 2021.
The Company also announces that it has settled an unpaid debt of $ 37,500, owed to an arm’s length creditor, in consideration for the issuance of 750,000 common shares at a deemed price of $ 0.05 per share. The shares are subject to a legal retention period of four months and one day following their issue.
TruExtracts Laboratories were created for high capacity extraction to meet global demand. TruExtracts is one of Western Canada’s largest cannabis and hemp processors, this state-of-the-art facility in Calgary features supercritical carbon dioxide CO2, ethanol, butane and pentane and solvent-free extraction . Health Canada licensed and operational. The expansion is underway to reach an area of 28,526 square feet. Services include toll processing, THC, CBD extractions and isolates, as well as white label service and THC and CBD cannabis products.
CSS develops critical technologies for the storage, transport and treatment of cannabis waste (physical and chemical). Specifically, they have applied for a provisional patent in the United States in the chemical extraction and fractionation of cannabinoids and monoterpenes from cannabis flower and biomass using their solvent system which is significantly more efficient than the ethanol. This gives CSS the ability to significantly manage the costs of high throughput processing and extraction of cannabis and hemp biomass.
The Canadian Securities Exchange accepts no responsibility for the adequacy or accuracy of this release.
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