Terrace Global Provides Operational Update and Response to COVID-19 Crisis
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- Terrace Global provides update on its high-CBD hemp operations in Uruguay through its wholly-owned subsidiary Oransur.
- Terrace Global provides update on its hemp operations in Spain, including entering into of a letter of intent with Pharma Life for the sale of its hemp biomass.
- Terrace Global confirms cash on hand of approximately $17 million at year-end and provides update on its COVID-19 response.
TORONTO--(BUSINESS WIRE)-- Terrace Global Inc. (“Terrace Global” or the “Company”) (TSXV: TRCE) is pleased to provide an operational update at its hemp cultivation sites in Uruguay and Spain. In Uruguay, the Company, through its wholly-owned subsidiary, Oransur, S.A., operates a high-CBD hemp facility with greenhouse and outdoor cultivation based in San Fernando. In Spain, the Company, through its wholly-owned subsidiary, Pharmabinoide SRL, operates an outdoor CBD hemp facility in Jaen.
“Terrace Global is fortunate to have a very strong balance sheet with approximately $17 million in cash at year end. Given the cyclical nature of our outdoor cultivation operations, we have the ability to scale-up and scale-down operations without impacting our long-term business plan. Our current focus is on receiving the requisite approvals in Portugal to commence construction of our medical cannabis greenhouse facilities in Portugal,” commented Francisco Ortiz von Bismarck, Chief Executive Officer of Terrace Global.
Oransur Operational Update
In 2019, Oransur planted four varieties of hemp in San Fernando, Uruguay, including two high-CBD strains sourced from Colorado – Cherry Wine (10% CBD) and Cherry Blossom (15% CBD) in accordance with Good Agricultural and Collection Practices (GACP). These high-CBD strains were grown as seedlings and ultimately planted outdoors producing approximately 750 kilograms of high CBD biomass for extraction. The high CBD-strains results produced germination rates of between 88% and 95%, respectively. Oransur was also able to produce approximately 500 kilograms of high-CBD seeds which the are in the process of being sold in the international markets pursuant to applicable import/export regulations. Please visit www.terraceglobal.ca to see a high-resolution video illustrating the Oransur outdoor cultivation project.
“Oransur and Pharmabinoide presented interesting operational results through the end of 2019 to present. We saw in Oransur that our high CBD genetics sourced from Colorado performed very well in San Fernando where we were able to produce approximately 750 kilograms of high CBD biomass. We envision our Uruguay sourced biomass to ultimately be extracted in the E.U. under a medical cannabis regime, which represents a very attractive business model given the cost structure,” commented Stephen Lermer, President and Chief Operating Officer of Terrace Global. “In addition to this biomass, we were able to produce approximately 500 kilograms of high-CBD seeds for commercial sale. We have seen the market price for high-CBD seeds fluctuate globally, but we nonetheless see these seeds as an unexpected windfall for the Company and see the potential for a seed business developing in Uruguay with a view to global supply.”
Pharmabinoide Operational Update
Pharmabinoide has recently completed its second outdoor hemp harvest in Jaen, Spain. Pharmabiniode successfully planted approximately 20 hectares of European certified hemp genetics (Future, Fedora and Felina) in early April 2019. These three varieties resulted in approximately 30 tonnes of biomass for extraction.
On March 4, 2020, Pharmabinoide entered into a non-binding letter of intent (the “LOI”) with Pharma Life Now SL (“PharmaLife”) for the purchase and sale of up to 30 tonnes of hemp biomass for extraction at a price of €2.00 per kilogram per % of CBD. Given the current mandatory lock-down in Spain of non-essential services, the parties are in discussions with respect to how to complete the terms of the LOI. As of the date hereof, PharmaLife has purchased 400 kilograms of hemp from Pharmabinoide.
In response to the novel coronavirus (“COVID-19”) the board of directors of the Company has been monitoring the operations of the Company in Uruguay, Spain and Portugal with a view to ensuring the strength of the Company’s balance sheet. As of year-end, the Company had approximately $17 million in cash and was fully funded to build out its medical cannabis greenhouse facilities in Portugal and its proposed extraction facility. The Company has suspended all non-essential operations and will continue to monitor the global outlook and continues to expect to break ground later this year on its medical cannabis greenhouse facilities in Portugal subject to applicable municipal and regulatory approvals.
The Company is in communications with the municipalities in which it operates to determine how it can assist with the procurement of personal protective equipment (PPE). The Company expects to be in a position to provide certain PPE to the municipalities of Palmela and Constancia, Portugal, later this month as a way to support local front-line workers.
About Terrace Global
Terrace Global is a multi-country operator (MCO) led by experienced cannabis entrepreneurs focused on the development and acquisition of international cannabis assets. Terrace Global’s focus is on federally legal jurisdictions with existing domestic demand, low cost inputs and approved for exportation. Terrace Global’s existing asset platform consists of: (1) a 33.75% indirect equity interest in one of the currently two recreational cannabis operations in Uruguay; (2) 100% of Oransur, S.A., a Uruguayan company producing high CBD hemp in Uruguay; (3) 100% of Terra Nova Produção e Comercialização de Produtos Natuis e Farmacêuticos, Lda, a Portuguese company with a pre-license issued by INFARMED for the cultivation, importation, and exportation of medical cannabis in Portugal; and (4) 100% of Pharmabinoide S.L., a Spanish company producing and commercializing hemp in Spain. MariMed Inc. (OTCQX: MRMD), a multi-state cannabis operator in the U.S., dedicated to improving the health and wellness of people through the use of cannabinoids and cannabis products, owns approximately 6% of Terrace Global.
This news release contains certain forward-looking statements, including, but not limited to, statements about the Company’s future plans and intentions. Wherever possible, words such as “may”, “will”, “should”, “could”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict” or “potential” or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release
Source: Terrace Global Inc.
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