North Bud Farms Announces Name Change and Provides U.S. Update

TORONTO, Feb. 19, 2020 (GLOBE NEWSWIRE) -- North Bud Farms Inc. (CSE: NBUD) (OTCQB: NOBDF) ("NORTHBUD" or the "Company") is pleased to provide shareholders with an update on our U.S. operations, Bonfire Brands USA (“Bonfire”).

Salinas, California

To date, the Company has harvested approximately 400 lbs of various grades and strains of cannabis. As anticipated, the winter season yields were moderate with large flowers testing at approximately 19% THC. The Company has sold approximately 50% of the harvest in wholesale quantities. The Company expects its next harvest in 60 days and is looking for an incremental increase in quality and yield. The Company will provide revenue updates at the end of the quarter.

Licensing

The Company is pleased to announce it has received a California state processing licence in addition to the existing five cultivation, extraction and distribution licenses it acquired from the Qlora Group in 2019. This new licence will allow the Company to process, package and distribute cannabis and cannabis products acquired from other licensed producers in the state on a pay per use basis.

“Maximizing revenue streams in California where established and highly regulated retail and distribution models exist has required new entrants to operate within all verticals,” said Justin Braune, President, Bonfire Brands USA. “This strategy requires significant capital expenditures and has historically proven very difficult to execute. By leveraging our strategic infrastructure into agreements with established operators, Bonfire expects to increase revenue streams and achieve profitability quicker with lower capital expenditure risks.”

“I am very pleased by the significant progress made by our California team in their short time since we completed the acquisition of the Qlora Group,” said Sean Homuth, CEO of NORTHBUD. “In an industry that has seen companies struggle to manage high infrastructure costs while navigating ever evolving distribution landscapes, the anticipated revenue from this model will be very crucial for the Company as we move towards achieving EBITDA positive operations.”
   
Reno, Nevada

To date, the Company has harvested 40 lbs of high-grade cannabis testing at approximately 20% THC. This product is being sold under the NORTHBUD brand to select retailers in Reno and Las Vegas and represents the first revenue in Nevada for Bonfire Brands.  The Company will update the market further at the end of the quarter.