- Centurion Minerals (TSXV:CTN) says that significant progress has been made regarding its new cannabis business and capital financing strategies
- In an announcement dated February 7, 2020, the company acquired a group of Uruguay-based cannabis producers, thereby constituting a change in business
- Since then, the company has been working to construct an extraction a lab facility
- In addition, various funding channels are being pursued in order to support this change in business
- Centurion Minerals’ (CTN) shares have been on voluntary suspension pending further news since the start of February this year and were last trading at seven cents each
Centurion Minerals (TSXV:CTN) says that significant progress has been made regarding its new cannabis business and capital financing strategies.
The Vancouver-based company had previously been focused on South American asset development, with a primary interest in the Ana Sofia Agri-Gypsum Fertilizer Project.
However, pursuant to an announcement from early February this year, Centurion is now turning its attention to South American cannabis operations.
In the announcement, Centurion outlined its acquisition of a group of Uruguay-based companies, which do business as CannaEden.
CannaEden’s assets include a fully-operational CBD extraction plant, 10 hectares of cultivation and cloning land, and pending registrations of genetics with high-CBD concentrations.
Since the announcement was released, Centurion has been focused on developing sales channels for its proposed distillate oils and isolates. Initial products are expected to be made available to customers in Brazil, Argentina, Paraguay and Peru.
Ongoing discussions are also in progress with several parties seeking research and development services, which are anticipated to begin in the fourth quarter of this year.
Despite strong support for the change of business, challenges related to the COVID-19 pandemic and a generally volatile market have made it difficult to secure funding for the operational turnaround.
That said, Centurion is currently in negotiations with several potential financiers, and says that more definitive funding commitments should be revealed in the near-term.
Following the confirmation of funding, Centurion plans to proceed with its change of business applications via the TSX Venture Exchange.
In the meantime, the company’s Canadian operations are being funded by senior management personnel on an interest-free loan basis.
David Tafel, CEO of Centurion Minerals, said he is optimistic given the support the company has received to date.
“We are very pleased with investor support we’ve received to continue this process, and despite the challenges faced by COVID-19, the teams in Canada and South America have made exceptional progress under difficult circumstances.
“I am very thankful for our team’s commitment and input during this unprecedented time and look forward to announcing the funding commitments, our extraction equipment vendor, and the progress of our Uruguayan extraction lab with investors in the near term,” he said.
Centurion Minerals’ (CTN) shares have been on voluntary suspension pending further news since the start of February this year, and were last trading at seven cents each.