Liht Cannabis Corp. (or the "Company") (CSE: LIHT) (OTCQX: LIHTF) is pleased to advise on construction progress of the first two, of ten, facilities in Celista

Liht Cannabis Corp. meets an early construction milestone in British Columbia, Canada

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Liht Cannabis Corp. (or the “Company”) (CSE: LIHT) (OTCQX: LIHTF) is pleased to advise on construction progress of the first two, of ten, facilities in Celista, British Columbia.

Construction of the first 10,000 sq. ft facility, (“Building 1”) is now complete to lock-up.

The Level 7 vault, constructed of 8″ reinforced solid concrete walls, floors and roof slabs will be poured in conjunction with the foundation pour of the bio-security system this week.

Crews are making progress; HVAC, plumbing, electrical and security installation are slated for mid-January. We are pleased to report, a preliminary fire inspection has been completed and due to the high quality of building materials, a sprinkler system is not required.

The design and construction of the second facility’s foundation is now complete (“Building 2”). The pre-fabricated structure was delivered on January 7th construction will proceed to schedule.

On July 13, 2018, the Agricultural Land Reserve (“ALR”) Regulation was amended with relation to the production of medical cannabis. Section 2.2(p) of the ALR Regulation, which designated as farm use “the production of marihuana in accordance with the Marihuana for Medical Purposes Regulation, SOR/2013-119 (Canada)”, has been repealed. The following has been added as Section 2(2.5) to the ALR regulation.

“The lawful production of cannabis is designated as farm use for the purposes of the Agricultural Land Commission Act, S.B.C. 2002 c. 36 (“ALCA”) if produced outdoors in a field or inside a structure

a)  That has a base consisting entirely of soil, or
b)  That was, before the date on which this section came into force,
i.Constructed for the purpose of growing crops inside it, including but not limited to the lawful production of cannabis, or 
ii. Under construction for the purpose referred to in subparagraph (i) if that construction
1.Was being carried out in accordance with all applicable authorizations and enactments, and
2.Continues without interruption from the date it began to the date the structure is completed, other than work stoppages considered reasonable in the building industry, and
3.That has not been altered since that date to increase the size of its base or to change the material used as its base.”

For further information on the changes, please refer to Information Bulletin 04 Cannabis Production in the ALR at the following link: https://www.alc.gov.bc.ca/assets/alc/assets/legislation-and-regulation/information-bulletins/information_bulletin_04_cannabis_production_in_the_alr.pdf

As of July 13, 2018, the site had already begun construction on Building 1 and 2 with the use of a concrete base. Under the above regulation, these buildings are able to continue without submission of a non-farm use application.

The remaining 8 buildings will be constructed with usage of non-concrete base foundations which meet the ALR Regulations. The Company is able to continue without submission of a non-farm use application and can move forward without issue.

We are please to report that Health Canada has confirmed that we can call for inspection upon the completion of the first building for the purposes of our Licensed Producer application.  As previously mentioned, Building 1 is at lock-up stage. The Company is confident that it will receive its 100,000 sq. ft licence to cultivate during the first half of 2019, a sales license to follow and apply for an extraction license once the new regulations come into effect this year.

“We are extremely excited to have found a solution to the new ALR rules and regulations pertaining to structures not being constructed of concrete base. We look forward to announcing more information on this in the upcoming weeks. Cody Hamilton, Responsible Person In Charge.

JADIRI GAMER

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