Optimi Health Updates Build-Out of Mushroom Production and Research Facility

Rhea-AI Summary

Optimi Health Corp. (CSE: OPTI) (OTCQB: OPTHF) has provided an update on its 20,000 sq. ft. production facility in Princeton, British Columbia. The project is currently three to four weeks behind schedule due to supply chain challenges, which the company considers acceptable in light of the global health crisis. The company is moving forward with construction for a Controlled Substance Dealers License and has been advised that the proposed security measures may meet Health Canada requirements. Progress on facility systems is ongoing, with most equipment expected on-site within a month.

Positive

• Construction of security elements for the facility has received approval, allowing progress towards a Controlled Substance Dealers License.
• Most specialized security fencing materials have arrived and installation is nearing completion.

Negative

• The project is currently three to four weeks behind schedule.

VANCOUVER, British Columbia, Sept. 14, 2021 (GLOBE NEWSWIRE) -- Optimi Health Corp. (CSE: OPTI) (OTCQB: OPTHF) (FRA: 8BN) (“Optimi” or the “Company”), developers of a vertically integrated functional mushroom brand focused on the health and wellness sector, is pleased to offer an activity update at its 20,000 sq. ft. production and research facility in Princeton, British Columbia.

Optimi continues to advance towards final build-out of its two adjacent 10,000 square foot facilities which originally began construction in August of 2020. Current estimates place the project as between three to four weeks behind schedule. When measured against the backdrop of the ongoing global health crisis, a delay of this nature is considered acceptable and Optimi thanks all concerned for their ongoing and relentless efforts to manage supply chain and related issues efficiently and effectively to expedite overall progress.

Of particular importance, notification was recently received regarding Optimi’s application for a Controlled Substance Dealers License which specifically referenced the facility details for both proposed Security Level 8 and grow room installations. The review indicated the proposed security environs may meet the requirements of the Health Canada Directive on Physical Security Requirements for Controlled Substances and Drugs Containing Cannabis (the “Directive”) if built as proposed. The notification officially advised Optimi it may begin construction of these secure elements of the facility and further requested notification upon completion in order to arrange for an inspection.

Regarding ongoing activities, building 261’s facility-specific structural, electrical, ventilation and irrigation systems have either been roughed in or completed to key demarcation points. Secondary site electrical is nearing completion and external paving, road access and security fencing are scheduled with some materials already pre-staged. Remaining procurement tasks include a millwork ITT and direct purchase of specialty items such as washroom accessories, escape ladders, signage, lockers, washroom partitions and fire extinguishers (see figures 1-5).

Next door at Building 269, framing is complete except for a few small areas relevant to the grinding and extractions rooms. Electrical rough-in is largely complete and the mechanical infrastructure install continues daily. Most of the balance of required equipment for both buildings will be on-site over the next month including all the electrical distribution equipment and ancillary mechanical. Optimi has been advised that most of the specialized security fencing materials have now arrived and installation should complete in a few weeks. The contractor has completely installed the majority of the security fence and security components for the exterior of the site. The security integrator will be on site throughout September to ensure the system is complete and operating in accordance with the design in preparation of our Health Canada inspection.

The grid electrical provider has informed the team that secondary electrical infrastructure must be in place prior to delivery of the primary transformer to energize the site and have been informed that the requisite equipment will be largely in place by September 15. Delivery dates for tertiary transformers and distribution have been confirmed for September. Optimi’s team is currently meeting with the City of Princeton regarding roadcuts and connection of water and sanitary services.

In accordance with Health Canada protocols, now that Optimi has been advised to proceed with Security Level 8 construction, secure vault ceiling decking will be installed immediately in preparation for a planned concrete pour. Once completed, the facility will include a Region III, Level 8 product vault with a projected capacity to initially secure a licensed 50kg of Psilocybin with the ability, subject to future licensing, to easily scale up to a maximum allowable level 8 capacity of 1,250kg.

Optimi Health COO and Director, Bryan Safarik notes, “The pace of activity has been phenomenal with updates occurring daily. We are delighted how well everything is coming together, and the quality of work continues to be excellent. I look forward to delivering this project within a timeline and budget that’s not far from our original pre-Covid expectations, and under the extraordinary circumstances are very pleased with how diligently the entire team is working to get Canada’s first all-natural end-to-end mushroom facility ready for production. It’s shaping up to be a fabulous world-class facility we can all be justifiably proud of.”

On Behalf of the Board of Directors,

Bill Ciprick
Chief Executive Officer
Optimi Health Corp.

ABOUT OPTIMI (CSE: OPTI) (OTCQB: OPTHF) (FRA: 8BN)

Optimi is developing a sophisticated mushroom brand that focuses on the health and wellness markets. With a vertically integrated approach, Optimi intends to cultivate, extract, process and distribute high quality functional mushroom products at its two facilities comprising a total of 20,000 square feet nearing completion in Princeton, British Columbia. To fully investigate the science of mushrooms, the Company has received a research exemption under Health Canada Food and Drug Regulations (FDR) for the use of Psilocybin and Psilocin for scientific purposes via its wholly owned subsidiary Optimi Labs Inc. Optimi has also applied for a dealer’s license under Canada’s Narcotic Control Regulations governing possession, distribution, sale, laboratory analysis of and research and development of Psilocybin and Psilocin formulations. Optimi is committed to expert cultivation and quality production subject to and in accordance with the terms of all applicable laws and governing regulations to ensure safe, superior Canadian fungi production. Find out more at: https://optimihealth.ca/.

FOR FURTHER INFORMATION CONTACT:
Investor Relations
Email: investors@optimihealth.ca
Phone: +1 (778) 930-1321
Web: https://optimihealth.ca/

FORWARD‐LOOKING STATEMENTS

This news release contains forward‐looking statements and forward‐looking information within the meaning of Canadian securities legislation (collectively, "forward‐looking statements") that relate to Optimi’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result," "are expected to," "expects," "will continue," "is anticipated," "anticipates," "believes," "estimated," "intends," "plans," "forecast," "projection," "strategy," "objective," and "outlook") are not historical facts and may be forward‐looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward‐looking statements. No assurance can be given that these expectations will prove to be correct and such forward‐looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In particular and without limitation, this news release contains forward‐looking statements pertaining to the Company’s potential Nasdaq listing, the dealer’s license application, activities proposed to be conducted under the Company’s research exemption and associated business related to Psilocybin and Psilocin and Optimi’s plans, focus and objectives.

Forward‐looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Optimi’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward‐looking statements. Such risks and uncertainties include, but are not limited to, the impact and progression of the COVID‐19 pandemic and other factors set forth under “Forward‐Looking Statements" and “Risk Factors” in the Company’s Final Prospectus dated February 12, 2021. Optimi undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Optimi to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward‐looking statement. Any forward‐looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

Figures 1-5 are available at 
https://www.globenewswire.com/NewsRoom/AttachmentNg/9bb31642-f025-43d6-9a6f-5bf0c188c7e2
https://www.globenewswire.com/NewsRoom/AttachmentNg/6c0bccde-8daf-4239-8ce7-a774554c6ca2
https://www.globenewswire.com/NewsRoom/AttachmentNg/323cd137-6e4e-4b4d-97c3-fe85ac159b59
https://www.globenewswire.com/NewsRoom/AttachmentNg/4e63331e-1854-485f-bef6-5061feb66ab0
https://www.globenewswire.com/NewsRoom/AttachmentNg/ecdf06cd-bfac-482e-a51f-aaa06d6517c2

FAQ

What is the update on Optimi Health Corp.'s facility construction?

Optimi Health Corp. reported that construction of its production facility in Princeton, BC, is three to four weeks behind schedule, primarily due to supply chain issues.

Has Optimi Health received approval for its Controlled Substance Dealers License?

Yes, Optimi Health has been advised that its facility may meet the required security criteria for a Controlled Substance Dealers License, allowing construction of secure elements to proceed.

What is the status of equipment procurement for Optimi Health's facilities?

Most required equipment for the facilities is expected to be on-site within the next month, with ongoing progress on various facility systems.

Are there any delays reported in Optimi Health's construction timeline?

Yes, the construction timeline for Optimi Health's facilities is currently delayed by three to four weeks.

What are the plans for the secure vault in Optimi Health's facility?

Once completed, the secure vault will initially secure a licensed 50kg of Psilocybin, with potential future capacity to increase to 1,250kg.