Isracann Biosciences Receives Land Use and Facility Approvals from Israeli Land Authority and Amends Warrants

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VANCOUVER, British Columbia, Nov. 28, 2019 (GLOBE NEWSWIRE) — PRESS RELEASE — Isracann Biosciences Inc., an Israel-based company focused on becoming a premier low cost, high quality cannabis producer for both domestic and European export sales, has advised that it has received the requisite facility design and land use approvals from the Israeli Land Authority preparatory to construction permitting and awarding of building contracts for the proposed phase 1 build-out. Prior to commencement of construction, the company will require the approval of the Israeli Settlement Commissioner and the Israeli Ministry of Health. These approvals are pending.

Isracann’s plans call for the construction of greenhouse facilities in Nir, Israel. Isracann has finalized engineering drawings from AgroPlan Ltd., an architectural design firm with extensive cannabis experience. The company solicited and received detailed proposals from multiple cannabis specialty greenhouse construction firms within Israel (and abroad) that specialize in the design, construction and implementation in support of cannabis agricultural projects. Contract awards were predicated upon receipt of land use approvals and will now move ahead expeditiously.

Phase I involves the fabrication of two Isracann facilities totaling up to 115,000 square feet. Each of the greenhouses is based on a 57,500-square-foot floorplan with an estimated annual production capacity of 5,750 kg of dried cannabis flower. The facilities will be built to comply with the Israeli Medical Cannabis Good Agricultural Practices (IMC-GAP) and Good Security Practices (IMC-GSP).

Each facility is custom designed to meet or exceed regional environmental needs and is proposed to feature a highly ventilated framework with curtains on all four sides of the vaulted roof configuration. The structural designs are in accordance with Israeli standards (steel structure code 1225, load standards 412/1992 and 414/1982). The preliminary design was approved by the Israeli Ministry of Agriculture & Rural Development. The two phase 1 Isracann greenhouses will have an eight-foot-tall fence surrounding the facilities with an electronic gate for vehicular access for added security. Additionally, a closed-circuit television system will be installed to comply with Israeli Medical Cannabis Agency regulations.

The scope of the project includes a roof design employing polyethylene sheets specifically installed for cannabis cultivation in order to achieve maximum advantage of the unique sunlight exposure in Israel. The cooling and ventilation system utilize three types of fans that help control temperature, humidity and radiation throughout the entire facility. The packing facility includes offices with a built-in kitchen for employees, and a post-harvest area totaling 6,500 square feet featuring dedicated drying, curing and trimming rooms.

Company CEO Darryl Jones states, “This is a milestone for the venture and validates the groundwork, including technical and administrative efforts we have undertaken in recent months to ensure we continue to meet our regulatory targets on schedule. With this approval in place we have met the initial hurdles regarding land use. Now, we can get started with the next step of getting shovels in the ground and begin the business of building our business. We are truly delighted to have achieved so much so quickly, and on behalf of our partners and stakeholders we thank the growing numbers of shareholders who share our vision for the potential growth of the cannabis sector in Israel.”

Re-Pricing and Extension of Warrants

The company announces that it has received CSE approval for the repricing of 13,835,644 warrants expiring on Dec. 13, 2019, and 139,714 warrants expiring on Dec. 15, 2019. The exercise price will change from $2.25 to $0.51 per share. The company has also extended the exercise date of the warrants to Jan. 13, 2020.

The company also announces that it is extending its agreement, previously announced on Nov. 6, 2019, for investor relations and marketing with CDMG Inc. to raise public awareness of the company.

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