Legal & Finance Update February 8, 2019

 
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THIS WEEK’S UPDATE

  • Submission of Cannabis Processing License - This week we are working on our processing license. This is a huge milestone for the company and we expect to file our processing license within the next week.

  • Manufactures License - This week we also received official confirmation that we have been granted/approved for an Ontario Manufacturer's License – Brewery. This allows Province to be deemed a manufacturer of alcohol to sell its products to the Liquor Control Board of Ontario (LCBO) for sale or distribution in its system or by other approved means.

  • LCBO Certificate of Analysis - You may recall we sent samples of our latest test batch of beer off to the LCBO. We received our certificate of analysis back from their independent testing center and we passed with flying colors.

  • Training - Last week the legal department members all participated in a training session/ live webinar for Cannabis Micro-License application Process and requirements. 

LOOKING FORWARD

  • Beer Store Application - Now that we have a manufacturers license we plan to begin work on our application to the beer store. This application will allow our alcoholic products/SKUs to be sold at the beer store. We are primary targeting the Liberty Village Beer Store which focuses primarily on craft beer and specialty beer.

  • Ethanol storage and sales license - As you may know for our non-alcoholic SKUs ethanol will be a by-product that is derived during the dealcoholizing process. We would like to convert this ethanol into other products as a potential revenue stream. Also, there are special requirements for facilities that hold ethanol even if we choose to sell it and not convert it to some other product. As a result, we will need a special license to store and process ethanol. We have started the initial research process to make sure that we have this license in place when the brewery comes online. We hope to have a strategy and complete application by month end.

  • Expense Policy Overhaul - We are in the final stages of our expense policy overhaul and expect to be done with the next draft within the next week.

  • Comment Period - Health Canada initiated a 60-day comment period on Dec. 22, 2018, when it published draft regulations for the manufacture and sale of edible products containing cannabis in the Canada Gazette. On Oct. 17, 2018, Canada legalized the recreational use of marijuana and said it would allow the sale of edible products within approximately one year. We are working to submit statements to Health Canada about the proposed regulations before the end of the comment period (February 20, 2019) on behalf of Province Brands.

THINGS WE NEED HELP WITH

  • If you have seen any great corporate spending guidelines for employees let us know as we are working on our policy internally and it might be helpful to see how other company’s are managing affairs in this area.