Vancouver, British Columbia – TheNewswire - April 19, 2022 – Blackhawk Growth Corp. (CSE:BLR); (Frankfurt:0JJ) (the “Company” or “Blackhawk”) is pleased to announce that its wholly-owned subsidiary, Blum Distributors Ltd. (“Blum”), white label division is now in full-operation and is expanding their facility to provide their own in-house products that are formulated with the highest quality sterile substrates, spawn, and mycelium cultures to empower both commercial and home scale growers in their mycological journey.
Blum recently signed a contract to provide a white label solution for an arm's length company, Applied Myco. The contract guarantees a minimum order of 500 bags per month during its Phase 1 trial and is expected to increase to up to 2,000 bags per month in Phase 2 and 3 over the next 12 months. The guaranteed minimum order will generate approximately $12,500 per month in gross revenue and would increase to approximately $50,000 per month assuming an order of 2,000 bags. Gross margin on the products historically has been approximately 50%. Blum has started to fulfill this order and will update Blackhawk shareholders as the contract progresses.
With Blum’s controlled and sterilized inoculation lab, Applied Myco has entrusted its full lab operations team in regards to the creation and expansion of a 15 strain genetics and live culture library. This, in turn, will empower residential and commercial scale cultivators which is anticipated to create an additional revenue source.
“Blum is off to a great start” said Frederick Pels, CEO of Blackhawk. “White label production is a significant step and ensures Blum will capture market share rapidly. With production and expansion occurring in tandem, I am confident that Blum will continue to grow and I look forward to updating shareholders as Blum progresses.”
Blum recently signed another sale which is expected to start delivery in April, and will see Blum expand its cultivation through a 14,000 sq ft commercial project which is guaranteed to begin with an order for 5,000 bags per month, which is expected to create gross revenue of approximately $125,000 per month. When the cultivation centre renovations are completed, the contract provides for production increases of 5,000 per cycle to a maximum size of 50,000 bags per month. If the maximum contract deliveries are reached, the order will generate in excess of $1,000,000 per month in gross revenue for Blum, based on current sales prices.
Blum’s commercial cultivation client has recently received their building permit approvals earlier than anticipated and is now commencing the first phase of an initial 5000 bag order.
About Blum Distributors
Blum is an established mycology supplier with its own leased production facility. Blum’s operations are systemically rooted in biodiversity. They wholly-own the value chain from cultivation through to their product sales, reaching both commercial and retail partners. Their sustainability pledge is embodied in their commitment to support their partners in their own mycological journeys. Blum’s in-house product cultivation, distribution, and sales center provides them with an advantage over their competitors by reducing intermediaries. Blum fully controls the quality and purity of their products throughout the value chain, from cultivation to consumer sales. They are committed to providing the utmost highest quality supplies and solutions to empower both commercial and home scale growers in their mycological journey.
For more information regarding Blum visit their website: www.blumdistributors.com
About Blackhawk Growth
Blackhawk is an investment holding company looking to create substantial value for its shareholders through the acquisition and development of high growth companies. It has focused its investments in the health, cannabis and cannabidiol industries in both Canada and the United States. Its portfolio of companies includes Sac Pharma, Terp Wholesale, LeichtMind Clinics, Noble Hemp, Spaced Food, Stable Foods, and MindBio Therapeutics, Digital Mind Therapeutics as well as an equity position in Gaia Grow Corp. (CSE:GAIA).
The Company diligently posts updates through videos from the official company YouTube channel https://www.youtube.com/channel/UCs4f2tt3yAvOGhNLjgNOy-A
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For further information please contact:
Frederick Pels, Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statement
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws, including with respect to the future operations of Blum Distributors Ltd. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
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