Green Mountain Granted Industrial Hemp Production License

Cannabis License Applicant to Grow Outdoor Hemp for CBD Extraction, Conduct Research on High CBD Cultivar

 

PENTICTON, BC – May 2, 2019 - Green Mountain Health Alliance Ltd. (the "Company" or "Green Mountain"), is pleased to announce that Health Canada has approved the Company’s application for an industrial hemp license. Green Mountain intends to cultivate hemp for the extraction of cannabidiol (CBD) and conduct research on high CBD hemp varietals, complementing the Company’s original business plans to grow large-scale, low-cost, wholesale cannabis; sell nursery stock; harvest and sell dried cannabis; and process and sell cannabis derivatives.

Green Mountain has secured three properties in the Okanagan Valley in BC – an owned 16-acre ALR parcel in Kaleden, a leased commercial greenhouse in the White Lake area of Kaleden, and a 98-acre parcel of Indigenous agricultural land in Marron Valley (with an Intent to Lease). Green Mountain intends to use two of the three properties for hemp cultivation; growing outdoor hemp on the Marron Valley property and utilizing the White Lake greenhouse as a nursery for hemp cultivation and research and development on a high CBD hemp strain.

The Company is awaiting approval of a cannabis production license for its 16-acre Agricultural Land Reserve (ALR) property, following the progression to the review stage of Health Canada’s newly created Cannabis Tracking and Licensing System (CTLS) and identification as an Indigenous Associated Applicant. The Regional District of Okanagan-Similkameen (RDOS) recently granted a greenhouse building permit for the site.

Cultivation of industrial hemp is currently regulated by Health Canada under the Cannabis Act, which allows licensed producers to grow hemp for a variety of purposes, including extracting CBD. CBD is in high demand across the globe for its health benefits. The oil often retails for over $90/fl. oz. and it’s estimated that CBD consumer sales in the US will total approximately $1.15 billion by 2020, making this a potentially profitable venture for Green Mountain. Hemp grows very quickly and can be selectively grown for CBD, and has almost no THC at less than 0.3%. CBD does not produce the psychoactive ‘high’ caused by THC.

“The Canadian cannabis market is continually developing, and with the ‘second wave’ of legalization coming around edibles, beverages, etc. in October of this year, we anticipate the demand for CBD will increase significantly,” said Green Mountain President, Wade Attwood. “We want to ensure Green Mountain can respond to evolving legislation and maintain market adaptability to maximize revenue. We applied for the hemp license to complement our core business model of producing cannabis and as we are still awaiting our cannabis license, we believe cultivating hemp will enable us to get to the market and be revenue positive faster than by growing cannabis alone.”

Green Mountain is committed to sustainable outdoor and greenhouse growing practices which it believes will reduce environmental impacts and utilize natural elements to ensure the highest quality product. Outdoor hemp cultivation is low-cost versus capital-intensive indoor cultivation facilities, and hemp naturally requires minimal pest control and is well-adapted to the outdoor Okanagan environment.

Mr. Attwood also stated, “Currently, industrial hemp licenses only allow for cultivation of hemp strains located on the Industrial Hemp Approved Cultivars List, which are relatively low in CBD. Green Mountain intends to work on researching and developing a high CBD hemp cultivar; far higher than what is on the market now. If we complete the process to have this strain approved, this means greater yield of CBD and incrementally higher ROI per acre than the strains that are currently available, which is great for Green Mountain’s bottom line.”

About Green Mountain Health Alliance Ltd.

Located in the Okanagan Valley, BC’s best cannabis growing area, Green Mountain is progressing towards becoming one of Canada’s leading, socially responsible, low-cost, large-scale wholesale cannabis and hemp producers. Our team of employees, proven industry experts, and Indigenous partners are working to ensure we will provide safe, sun-grown, high-quality cannabis and hemp using environmentally sustainable cultivation methods and greenhouse technology.

As a wholesale, high-volume, low-cost producer, Green Mountain is ideally positioned to fill a market gap; providing the expanding Canadian medical and recreational cannabis industry with consistently high-quality product utilizing superior genetics. The company has secured over 100 acres with the potential for over 1,000,000 square feet of growing space. For more information, visit www.gmtn.ca.  

The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements.” Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof, and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company’s expectations or projections.

For more information, please contact:

General Inquires:

Jessica Murdoch, Communications Manager, Green Mountain

1-833-291-GMTN

jmurdoch@gmtn.ca

Investor Inquiries:

Michele Lise, Investor Relations, Green Mountain

1-833-291-GMTN or 604-612-4443

mlise@gmtn.ca

FREQUENTLY ASKED QUESTIONS

FAQs

It depends on the province. Most require you to be 19. Alberta's minimum age is 18 and Quebec's is 21.

Our full legal name, which appears on our licences and formal documents, includes “Health Alliance,” while our trade name is Green Mountain.

Our operations are based in the Okanagan region of British Columbia, which features heavily wooded surroundings, clean air and spring water.

Our cultivation and production teams are led by plant scientists, including an agriculture Hall of Famer. Every input is carefully reviewed and adjusted to support consistent products. See our Latest News section for in-depth articles exploring our processes.

Terpenes contribute to the aroma and flavour profile of cannabis. The dry climate of the Southern Okanagan supports terpene expression in our flower. Our products typically test in the 2–4% range.

We draw irrigation water from our on-site aquifer. The spring water is structured using a Schauberger vortex. The device mimics how water naturally swirls in a mountain stream, which some growers believe helps plants absorb it more efficiently. All our flower is hang-dried and non-irradiated unless required by law.

Our products are carried by authorized retailers in British Columbia, Ontario, Saskatchewan, Alberta, and Manitoba.

Yes, provided you meet the age restrictions of the provinces you are visiting and do not carry more than the 30-gram limit.

All our products undergo mandatory Government approved laboratory testing for potency, terpene levels, pesticides, heavy metals and contaminants in accordance with Health Canada requirements.

Being vertically integrated allows us to manage the full process from cultivation to market without needing to trust third-party intermediaries.

No. Impairment laws are strict. Check your local laws when it comes to driving or operating machinery after using cannabis.

Our largest shareholder is the Manitoba Metis Federation (MMF). We are aligned with their values of purity and social cohesion.

Tourists who meet the legal age requirement in the province where they are located may purchase cannabis. Cannabis cannot be taken across international borders, including to the United States.

Start low and go slow. Speak with a budtender or review the summaries in our Product Portfolio.