LEEF Brands Begins Planting Salisbury Canyon Ranch, One of the Largest Cannabis Farms in the World

Rhea-AI Summary

LEEF Brands Inc. (OTCQB: LEEEF) has begun planting cannabis at Salisbury Canyon Ranch, a 1,900-acre property poised to become one of the world's largest cannabis farms. The company is initially cultivating 65 acres with plans to expand to 187 acres by 2027.

The operation includes two harvests planned for 2025: a summer harvest for distillate production and a fall harvest focused on hydrocarbon and solventless extraction-optimized strains. LEEF also holds a 100-acre hemp permit for the property.

The ranch, acquired in 2023 for $5.5 million with $7 million in infrastructure improvements, was recently independently valued at $40 million. This valuation is approximately double the company's current market capitalization. The company expects the farm to drive margin improvements starting in H2 2025 through reduced input costs and enhanced supply chain control.

Additionally, LEEF issued 600,000 common shares at $0.24 CAD per share to settle $100,000 USD in payables.

Positive

• Expansion to 187 acres of cannabis cultivation by 2027
• Property valued at $40M, representing ~7x return on initial $5.5M investment
• Two harvest cycles planned for 2025
• Expected margin improvements from H2 2025 through reduced input costs

Negative

• Share issuance of 600,000 common shares causing dilution

VANCOUVER, British Columbia, April 17, 2025 (GLOBE NEWSWIRE) -- LEEF Brands Inc. (CSE: LEEF) (OTCQB: LEEEF) (the “Company” or “LEEF Brands“), one of California’s largest and most sophisticated cannabis companies, has successfully begun planting Salisbury Canyon Ranch, a 1,900-acre trophy ranch that is set to become one of the largest cannabis farms in the world.

LEEF is planting 65 acres of cannabis this spring, and Salisbury Canyon Ranch will have two harvests this year—one in the summer and another in the fall. The summer harvest will primarily be used for distillate production, and the fall run will add strains optimized for hydrocarbon and solventless extraction.

The Company plans to expand operations to 187 acres of cannabis cultivation by 2027. LEEF also holds a 100-acre hemp permit for the property, which it is strategically evaluating for optimal implementation.

"This is the culmination of years of hard work and is a transformational milestone for our company," said Micah Anderson, Chief Executive Officer of LEEF Brands. "Salisbury Canyon Ranch represents not just a massive scaling of our production capabilities, but a fundamental shift in how we control our supply chain, ensure product quality, and manage costs."

By bringing cultivation in-house at this scale, LEEF expects to significantly reduce input costs while gaining greater control over supply and enhancing the quality of its concentrates. The farm is expected to drive margin improvements beginning in the second half of 2025 and beyond.

A Media Snippet accompanying this announcement is available by clicking on this link.

Salisbury Canyon Ranch Valuation

Salisbury Canyon Ranch was recently independently valued at $40 million, approximately twice the company’s current market cap. LEEF acquired Salisbury Canyon Ranch in 2023 for $5.5 million and has invested approximately $7 million in infrastructure improvements. The $40 million valuation underscores this project's strong ROI to shareholders.

Jesse Redmond, Head of Investor Relations and Business Development, recently discussed the valuation and plans for planting the farm with our CEO, Micah Anderson, and CFO, Kevin Wilson. You can watch the full video here.

Corporate Update

LEEF issued 600,000 common shares at an average price of $0.24 CAD per share to settle $100,000 USD of payables to a service provider.

About LEEF Brands, Inc.

LEEF Brands Inc. is a leading California-based extraction and manufacturing cannabis company, recognized for its large-scale vertical integration and as one of the state’s most sophisticated operators. With a comprehensive supply chain, cutting-edge manufacturing processes, and a dynamic bulk concentrate portfolio, LEEF powers some of the largest brands in the country. For more information, visit www.LeefBrands.com.

LEEF Brands Inc.

Per: Jesse Redmond, Head of Investor Relations and Business Development

Forward-Looking Statements

This news release contains certain forward-looking information and forward-looking statements, as defined in applicable securities laws (collectively, “forward-looking statements”), including, but not limited to, statements regarding the anticipated use of proceeds from the Financing and the Company’s future financial condition, operations, and objectives.

Forward-looking statements reflect current expectations or beliefs regarding future events or the Company’s future performance or financial results. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. All forward-looking statements, including those herein, are qualified by this cautionary statement.

Although the Company believes that the expectations expressed in such statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the statements.

There are certain factors that could cause actual results to differ materially from those in the forward-looking information, including, but not limited to, the risks disclosed in the Company’s public filings on the Company’s issuer profile on SEDAR+ at www.sedarplus.ca. Accordingly, readers should not place undue reliance on forward-looking statements.

For more information on the Company, investors are encouraged to review the Company’s public filings on SEDAR+ at www.sedarplus.ca.

The forward-looking statements and financial outlooks contained in this news release speak only as of the date of this news release or as of the date or dates specified 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, other than as required by law.

LEEF Brands, Inc., Jesse Redmond, Head of Investor Relations and Business Development, 707-703-4111, ir@leefca.com

FAQ

What is the current size and expansion plan for LEEF Brands' Salisbury Canyon Ranch?

LEEF is currently planting 65 acres of cannabis and plans to expand to 187 acres by 2027, with an additional 100-acre hemp permit under evaluation.

How much did LEEEF pay for Salisbury Canyon Ranch and what is it worth now?

LEEF acquired the ranch for $5.5M in 2023, invested $7M in improvements, and it's now independently valued at $40M.

When will LEEEF's Salisbury Canyon Ranch operations impact financial performance?

The farm is expected to drive margin improvements beginning in the second half of 2025 through reduced input costs and supply chain control.

What are the harvest plans for LEEEF's Salisbury Canyon Ranch in 2025?

Two harvests are planned: summer harvest for distillate production and fall harvest for hydrocarbon and solventless extraction-optimized strains.