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HEXO Corp reports third quarter 2019 financial results 

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Key highlights of third quarter of 2019 fiscal year 
HEXO remains on-track ramping up to $400 million net revenue in fiscal 2020 and to double net revenue in Q4 fiscal 2019 Entered a syndicated credit facility with CIBC and BMO for up to $65 million available credit to fund continuing expansion and innovation initiatives. 9,804 kg of dried cannabis produced, an increase of 98% over the previous quarter  2,904 kg of gram and gram equivalents sold, an increase of 8% quarter over quarter Headcount more than doubled from 364 to 822  Completed first harvests in new 1,000,000 sq. ft. expansion as HEXO continues ramping up to annual production capacity of 150,000 kg of dried cannabis Secured 60,000 kg of hemp to be supplied for CBD extraction purposes in preparation for upcoming edibles market and HEXO launch in eight American states in 2020Subsequent to quarter end: Closing of the Newstrike Brands Ltd (“Newstrike”) acquisition on May 24, 2019, which resulted in the following:Acquired all issued and outstanding common shares of Newstrike Increased footprint to approximately 1.8 million sq. ft. of production space and 638,000 sq. ft. of manufacturing and distribution spaceIncreased total estimated annual production capacity to 150,000 kg of dried cannabis, once fully operational Appointment of two experienced executives: Michael Monahan as Chief Financial Officer and Donald Courtney as Chief Operating OfficerEntered into a supply agreement for 200,000 kg of hemp to be supplied during fiscal 2020 for CBD extraction purposes Established HEXO USA Inc.GATINEAU, Quebec, June 12, 2019 (GLOBE NEWSWIRE) — HEXO Corp (TSX:HEXONYSE-A:HEXO) (the “Company”) is reporting its financial results for the third quarter of the 2019 fiscal year. “The past five years have seen the cannabis industry landscape, and our company, evolve significantly,” said HEXO CEO and co-founder Sebastien St-Louis. “This evolution continues at a staggering pace, as HEXO ramps up production effort and significantly increases its inventory, further contributing to our capacity to meet the demand and to reach our sales and revenue targets. Our Innovation, Development and Engineering team has grown significantly ahead of the legalization of edibles and now includes 25 professionals with PhDs and extensive experience in major consumer packaged goods companies“This quarter saw HEXO remain on-track as it continues ramping up to $400 million in revenue in fiscal 2020, including completing the first harvest in our 1 million sq. ft. Expansion and preparing to fund our ongoing expansion projects and innovation initiatives by entering a $65 million syndicated credit facility.” Subsequent to quarter end, HEXO bolstered its senior management team through the appointment of Michael Monahan as Chief Financial Officer and Donald Courtney as Chief Operating Officer. HEXO continues to drive value through its management team, with experience across a variety of industries, guiding and supporting the Company.HEXO most recently announced the closing of the agreement to acquire Newstrike. The acquisition will provide HEXO Corp capacity to produce approximately 150,000 kg of high-quality cannabis annually with access to four additional production campuses. It also provides the Company diversified domestic market penetration with combined distribution agreements in eight provinces. The combined entity is estimated to realize millions in annual synergies, allowing HEXO to operate more efficiently with a continued commitment to excellence.  The management’s discussion and analysis for the period and the accompanying financial statements and notes are available under the Company’s profile on SEDAR at www.sedar.com and on its website at www.hexocorp.com. Operational and Financial HighlightsKEY FINANCIAL PERFORMANCE INDICATORSSummary of results for the three and nine months period ended April 30, 2019 and April 30, 2018:Q3 PERIOD HIGHLIGHTSTotal gross revenue in the quarter increased in excess of 11.84x to $15,930 as compared to the same quarter of fiscal 2018.Gross adult-use revenue in the three months ended April 30, 2019, exceeded total revenues fiscal 2018 by $9,673 or 196%.Flower and other dry products represented 84% of the quarter’s gross adult-use sales, with oil sales representing the balance of 16%.New in the fiscal year are ancillary revenues associated the Company’s management agreement held with a supplier. This contributed $61 to of net revenue in the quarter.The loss from operations decreased 68% quarter over quarter as a result of the increased fair market value adjustment on biological assets reflecting the increased scale of operations and additional plants onboarded due to the licensing of the 1 million sq. ft. B9 greenhouse.OPERATIONAL HIGHLIGHTSAdult-use grams and gram equivalents sold increased 9% to 2,759 kg from the previous quarter as the Company continues to deliver on its existing supply agreements.During the quarter ended April 30, 2019, the Company produced approximately 9,804 kg of dried cannabis, a 98% increase from the previous quarter. This is attributable to higher yields in the 250,000 sq. ft. B6 facility as well as the first harvests of the 1 million sq. ft. B9 greenhouse also realized during the quarter.The Company continues ramping up towards its 108,000 kg of annual full production capacity. Economies of scale and production efficiencies continue to be worked towards to reach this capacity.ORGANIZATIONAL GROWTHAs a direct result of the increased operations and staffing requirements of the now several cultivation and production facilities, the Company experienced tremendous growth over the past quarter. In order to satisfy the needs of our 1 million sq. ft. B9 facility and 579,000 sq. ft. Centre of Excellence, along with boosting our administration, R&D and other operations our headcount rose by 120% to 822 employees as at April 30, 2019 from the previous quarter’s headcount of 374 on January 31, 2019. This represents an increase of 685 employees or x5 from the headcount as at April 30, 2018.On May 24, 2019, through the Newstrike acquisition, HEXO acquired an additional 250 employee backed skilled workforce.FACILITY EXPANSION  In April 2019, we realized the first harvests of the newly completed and licensed B9 1 million sq. ft. greenhouse at the Gatineau campus. This goal was met on time and on budget. This achievement was important step as the Company continues ramping up to an annual combined with Newstrike production capacity of 150,000 kg of dried cannabis and prepares for the legalization of edibles and concentrate cannabis derivatives expected in the fall of 2019.   FINANCIAL POSITIONAs at April 30, 2019, the Company held cash, cash equivalents and short-term investments of $173,604 and working capital of $219,120.The Company obtained a $65mm credit facility jointly held with CIBC and BMO, two of Canada’s premier financial institutions. This consists of $50mm available term credit and a $15mm revolving line of credit which will be used in part to finance the continuing expansion of the Gatineau campus as well as the leasehold improvements at the Belleville transformation centre without diluting the shareholders of HEXO.Summary of ResultsRevenue Total net revenue in the third quarter of fiscal 2019 increased to $13,017 from $1,240 in the same period of fiscal 2018. The main contributor is the addition of adult-use sales in which the Company is realizing in its first fiscal year of legalization in Canada. Adult-use sales in the quarter accounted for 91% of total revenue. Non-cannabis ancillary sales which began in the first quarter of fiscal 2019 remained consistent at $61 from $62 in the previous quarter. This revenue is derived from a management agreement held by the Company with arms-length partners.ADULT-USE SALESAs communicated in the previous quarter’s management discussion and analysis the current quarters adult-use gross sales stayed relatively flat totaling $14,607 in the three months ended April 30, 2019. This represents a slight decrease of 1% as compared to the prior quarter. Third quarter gross sales increased by $13,367 relative to the same period of fiscal 2018, (which included medical sales only during that period) or an increase of 1,078%. This is a result of the Company’s additional production capacity still in the ramp up stage as the new 1 million sq. ft. greenhouse realized its first harvest in April 2019.The Company’s adult-use gross sales for the nine months period ended April 30, 2019 totaled $34,593, an increase of $31,070 as compared to the nine months period ended April 30, 2018 total sales of $3,523. The increase is due to fiscal 2018 containing medical sales only.Sales volume in the third quarter of 2019 increased 9% to 2,759 kg from 2,537 kg equivalents sold in the second quarter of fiscal 2019 and increased 190% from 952 kg in the first quarter of fiscal 2019. Dried flower and milled products represented 84% of gram equivalents sold during the period, a 6% increase from the second quarter of fiscal 2019 and oil product sales comprising the balance of the quantity sold.    Gross adult-use revenue per gram equivalent decreased to $5.29 from $5.83 reflective of lower revenue and higher gram and gram equivalents sold. This is reflective of increased dry flower sales in the sales product mix during the quarter which command lower market sales prices per gram. The adult-use net revenue per gram equivalent decreased to $4.30 from $4.81 in the previous quarter reflecting the consistent approximate ($1.00) impact to revenue per gram due to excise taxes. In future periods as the sales mix shifts towards oil and other value-added products from lower valued dry flower products the impact of these excise taxes on revenue per gram is expected to decrease.During the period, 91% of all adult-use sales were realized through the SQDC with the remaining 9% derived in Ontario and British Columbia via the OCS and BCLDB.As the Company begins realizing sales from its first harvests of from its B9 greenhouse in the fourth quarter of fiscal 2019 net revenues are expected to approximately double those of the current quarter.MEDICAL SALESGross medical revenue in the three months ended April 30, 2019 increased 7% to $1,323 compared to $1,240 in the same period in fiscal 2018. Grams and gram equivalents sold increased marginally to 145 kg from 134 kg in the third quarter of 2018. The higher revenue was driven by higher oil sales which command a higher revenue per gram equivalent when compared to dried gram sales. Compared to the prior quarter, the sequential revenue decreased by 5% from $1,387, reflecting lower oil sales as well an oil product mix sold of a lower average value per gram equivalent.The Company realized $4,146 of gross medical sales during the nine months period ended April 30, 2019 which is an increase of 18% from the $3,523 of gross medical sales during the comparative nine months ended April 30, 2018. This increase is due to those reasons as stated above.Net medical revenues decreased during the quarter by 7% to $1,090 as compared to the second quarter of fiscal 2019 due to the overall decrease in medical sales during the period. Sales volume increased 8% to 145 kg when compared to 134 kg in the same prior year period. Gross revenue per gram and gram equivalent decreased to $9.11 as compared to $9.24 the same prior year period and $9.15 from the prior quarter. This is a direct result of the increase in our oil-based products sales as the product mix purchased by customers continues to shift towards smoke-free alternatives.Cost of Sales, Excise Taxes and Fair Value AdjustmentsCost of goods sold includes the direct and indirect costs of materials and labour related to inventory sold, and includes harvesting, processing, packaging, shipping costs, depreciation and applicable stock based compensation and overhead.Fair value adjustment on sale of inventory includes the fair value of biological assets included in the value of inventory transferred to cost of sales.Fair value of biological assets represents the increase or decrease in fair value of plants during the growing process less expected cost to complete and selling costs and includes certain management estimates.Cost of sales for the quarter ended April 30, 2019 were $6,577, compared to $479 for the same quarter ended in fiscal 2018. The increase in cost of sales is the result of increased sales volumes due to the legalized adult-use market not present in the comparative period. Also, increases to transformation costs were incurred as oil and other value-added products production mix has increased from the third quarter of fiscal 2018.  For the nine months period ended April 30, 2019, cost of sales increased to $15,905 from $1,393 from the comparable period of fiscal 2018 for the reasons as noted above.Fair value adjustment on the sale of inventory for the third quarter ended April 30, 2019 was $4,665 compared to $572 for the same quarter ended April 30, 2018. This variance is due to increased sales volume of inventory sold when compared to the same quarter in fiscal year 2018. Which was offset by the introduction of the adult-use market which commands a lower fair value per gram when compared to the exclusively medical market-based sales in the three months ended April 30, 2018.  Fair value adjustment on biological assets for the current quarter was ($20,057) compared to ($2,477) for the same quarter ended in fiscal 2018. This variance is due to the increase in the total number of plants on hand as well as increased yields when compared to the comparative period. The increase in plants is due to the fully licensed 250,000 sq. ft. greenhouse which began harvests in Q1 of fiscal 2019 as well as the activation of the 1 million sq. ft. greenhouse during the quarter. This results in significantly increased expected gram yields in the quarter and increased production costs of operating newly in-use facilities. The increase in scale and total plants on hand is the result of meeting the demand of the adult-use market.  For the nine months ended, the fair value adjustments on the sale of inventory and biological assets increased to $9,072 and ($33,534) respectively from $2,419 and ($6,169) respectively in the comparative period of fiscal 2018 for those reasons as noted above.New in fiscal 2019 are excise taxes associated with the new adult-use revenues and medical sales incurred after October 17, 2018. These taxes totaled $2,974 an increase of 6% from the prior quarter which is contestant with trend of the increase to underlying sales quantities. This was offset by the decrease in total gross sales for the quarter based on the product mix consisting of a higher balance of lower valued dried flower sales. This reduced gross margin before fair value adjustments by approximately 9% during the quarter which is consistent with the sequential quarter. Excise taxes are a function of fixed provincial and territorial rates based upon the gram equivalents sold as well as a variable ad valorem component which is dependent upon the selling price of the products.Operating ExpensesOperating expenses include general and administrative expenses, inclusive of research and development, marketing and promotion, stock-based compensation, and amortization expenses. Marketing and promotion expenses include customer acquisition costs, customer experience costs, salaries for marketing and promotion staff, general corporate communications expenses, and research and development costs. General and administrative expenses include salaries for administrative staff and executive salaries as well as general corporate expenditures including legal, insurance and professional fees.GENERAL AND ADMINISTRATIVEGeneral and administrative expenses increased to $10,495 in the third quarter of fiscal 2019, compared to $2,028 for the same period in fiscal 2018. This increase reflects the general growing scale of our operations, including an increase in general, finance and administrative staff for an increase of $2,965. New rental space in our Belleville location resulted in an increase of $794 which was obtained to house product processing and transformation as well as the administration department of the Belleville location. Total professional, listing and legal expenses increased by $900, as a result of additional corporate development initiatives and the increased financial reporting and control-based regulatory requirements accompanying public status on the TSX and NYSE-A. Increased insurances pertaining to commercial property and directors and officers increased $1,836 due to increased property, plant and equipment balances and the listing on the NYSE-A.Total general and administrative expenses for nine months ended April 30, 2019 increased to $23,572 from $5,074 in the same period of fiscal 2018 due to the general growth of the operational scale of the corporation for the same reasons as outlined above.The Company is anticipating general and administrative expenses to increase in the next quarter as the Company completes and operationalizes its current expansion projects over the remaining quarter of the fiscal year. Research and development expenses are expected to significantly increase in the final quarter of fiscal 2019 and subsequently, significantly escalate in fiscal 2020 as the Company executes its innovation initiatives.MARKETING AND PROMOTIONMarketing and promotion expenses increased to $5,122 in the third quarter, compared to $2,102 for the same period in fiscal 2018. This reflects the implementation of our adult-use marketing and promotional events undertaken in the quarter as we build brand recognition and establish HEXO in the adult-use cannabis market. This is inclusive of higher staff and travel-related expenses, printing and promotional materials as well as advertisement costs. Quarter over quarter total marketing and promotion expenses increased modestly 6% from $4,839 due to an additional advertising campaign and branding efforts incurred during the period.Total marketing and promotion expenses for the nine months period ended April 30, 2019 significantly increased to $21,671 from $4,528 as compared to the same period of fiscal 2018. This significant increase reflects the Company’s marketing and branding campaign which was primarily realized in the first quarter of fiscal 2019 as we prepared for the launch of the adult-use brand HEXO into the legalized Canadian market.The Company expects marketing and promotion expenses to trend with revenues in the final quarter of the fiscal year.STOCK-BASED COMPENSATIONStock-based compensation increased by to $8,162 when compared to $783 for the same period in fiscal 2018. The increase is a function of the increased number of outstanding stock options which is a direct correlation to the increased headcount of the Company. Underlying market prices of those options granted subsequent the third quarter of fiscal 2018 were significantly higher, resulting in an increase to the expensed value on a per stock option basis during the period.Total stock-based compensation for the nine months ended April 30, 2019 increased to $17,811 from $3,064 as compared to the same period of fiscal 2018 for those reasons as outlined above.AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENTAmortization of property, plant and equipment decreased slightly to $140 in the quarter, compared with $163 for the same period in fiscal 2018. The decrease is due to the capitalization of production equipment and building amortization in the period.Total amortization of property, plant and equipment for the nine months ended April 30, 2019 increased to $1,166 from $475 as compared to the same period of fiscal 2018 as the direct result of the Company’s newly built greenhouses and acquired cultivation equipment. Additionally, increases to cultivation and production equipment were incurred in order to support the larger production demands and scalability of the Company.  AMORTIZATION OF INTANGIBLE ASSETSAmortization of intangible assets decreased to $137 in the quarter, compared with $243 for the same period in fiscal 2018. The decrease is the result of the implementation of an inactive new ERP system which was only put into use during the period ended April 30, 2019. This system is replacing certain fully amortized software programs.Total amortization of intangible assets for the nine months ended April 30, 2019 decreased to $360 from $513 as compared to the same period of fiscal 2018 for those reasons as outlined above.Loss from OperationsLoss from operations for the third quarter was ($2,224), compared to ($2,653) for the same period in fiscal 2018. The increased operating expenses due to the expanding scale of operations were offset by higher revenues and increased biological fair value adjustments as our production capacity continues to increase.  Other Income/ExpensesOther income/(expense) was ($5,527) for the three months ended April 30, 2019 compared to $682 in the same period of fiscal 2018. Revaluation of financial instruments of ($1,121) in the latest quarter reflects the revaluation of an embedded derivative related to USD denominated warrants issued in the prior year. Additionally, we had an unrealized fair value loss on convertible note receivable of ($4,117) as well as an unrealized loss on a long term investment of ($277). Interest income of $1,242 was realized for the three months ended April 30, 2019 reflective of the interest generated from the increased cash holdings and the interest accrued on the convertible debentures and promissory note which was settled on April 30, 2019.Total other income/(expense) was ($979) for the nine months ended April 30, 2019 compared to ($5,068) of the same period of fiscal 2018. The increase is primarily due to the $1,862 unrealized gain on the convertible debenture which was issued in the first quarter of fiscal 2019. The loss due to revaluation of the financial instruments decreased $645 when compared to the nine months ended April 30, 2018 due to a decrease in the remaining number of underlying warrants. Interest income increased $1,350 due to increased cash holdings, convertible note interest and interest earned on a public security investment.About HEXO Corp 
HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market. Through its hub and spoke business strategy, HEXO Corp is partnering with Fortune 500 companies, bringing its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies, leveraging their distribution networks and capacity. As one of the largest licensed cannabis companies in Canada, HEXO Corp operates with 2.4 million sq. ft of facilities in Ontario and Quebec. The Company is also expanding internationally and has a foothold in Greece to establish a Eurozone processing, production and distribution centre. The Company serves the Canadian adult-use markets under its HEXO Cannabis and Up Cannabis brands, and the medical market under HEXO medical cannabis. For more information please visit hexocorp.com. 
Forward-Looking Statements 
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors that could cause actual events, results, performance and achievements to differ materially from those anticipated in these forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results. A more complete discussion of the risks and uncertainties facing the Company appears in the Company’s Annual Information Form and other continuous disclosure filings, which are available on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements as a result of new information or future events, or for any other reason. 
Investor Relations: 
Jennifer Smith 
1-866-438-8429 
invest@HEXO.com  
www.hexocorp.com 
Media Relations: 
Caroline Milliard 
(819) 317-0526 
media@hexo.com 
  
Director 
Adam Miron 
819-639-5498  
A video accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ac3726ad-b136-4048-80fa-b386164aa2a5

Original story can be found at: http://www.globenewswire.com/news-release/2019/06/13/1868122/0/en/HEXO-Corp-reports-third-quarter-2019-financial-results.html?f=22&fvtc=5&fvtv=41223728

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500 Patients in 100 Days and Investing in Australian Companies: Compass Lifestyle Clinics Looks towards the future of Medicinal Cannabis

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SYDNEY, Australia, Aug. 27, 2019 (GLOBE NEWSWIRE) — Today, Starbuds International (“the Company”), parent company to Compass Lifestyle clinics (“Compass”), is pleased to provide an update on its activities since launching its first medical clinic in Sydney Australia in May.
500 patients in 100 daysWithin 100 days of opening, Compass Lifestyle Clinics has seen over 500 patients and helped provide safe access to medicinal cannabis under the watch of the Therapeutic Goods Association (“TGA”). The company is now looking to expand its capacity to serve patients across Australia.Dr. Teresa Towpik wins Doctor of the YearAt the 2019 Cannabis Industry Awards for Australia, the honours of Doctor of the Year were taken home by Compass Chief Medical Officer, Dr. Teresa Towpik. The award comes as further validation for the work Dr. Towpik has done to bring cannabis into the mainstream as a medicinal cannabis advocate in addition to her tireless work both educating doctors around prescribing as well as serving patients.Investment in Australian Cannabis Grower Medigrowth AustraliaThe Company has also secured a minority investment in Australian Medicinal cannabis late stage applicant and cultivation company Medigrowth Australia. The investment further strengthens Compass’ position in the supply chain, combining patient-centric advocacy & GP education with a leading Australian medicinal cannabis grower and extractor.
             
“Our strategic partnership with Compass consolidates our commitment to patient access and advocacy. We look forward to working with the highly respected team at Compass to educate, inspire and innovate.” says Adam Guskich, Co founder of Medigrowth Australia. “Our combined resources will prove instrumental in providing access to pure, safe, trusted and affordable Australian grown pharma grade medicinal cannabis for Australian patients.”
Along with this announcement, Brianna Martyn, Co-Founder of Starbuds International, has been appointed to the Strategic Advisory Board“Australia has welcomed us with open arms”, says Dave Martyn, President of Compass. “When we did our research, we could see Australians were underserved when it came to safe access to medicinal cannabis. At the same time, from an economic standpoint, we’ve seen what an incredible job creator the cannabis sector has been in Canada. We’ve been fortunate to partner with some of the top cannabis leaders in Australia to play a part in ensuring safe patient access while also helping to grow the industry at large.”The news at a time when medical cannabis acceptance is rapidly growing. With monthly approvals increasing recent news around the removal of red tape surrounding cannabis companies, Compass is poised to expand it’s presence in Australia as it looks towards multi-clinic expansion as well as further investment opportunities.   Those interested in learning more about Compass Lifestyle Clinics can do so at https://compassclinics.com.au or in Canada at https://compasscannabis.ca.About Compass Cannabis ClinicsCompass Cannabis Clinic is a medical cannabis service provider whose core business is focused on providing educational and consultative services to those looking for access to medicinal cannabis. Compass works with a number of Licenced Producers to ensure the right product for the patient while eliminating product bias for prescribers. With several clinics operating in Canada and over 13,000 patients served, Compass has now expanded into Australia with its first clinic in Sydney. Compass Lifestyle Clinics, located in Sydney, with plans for rapid expansion. Compass also operates recreationally in Canada as Starbuds Canada.For further information contactDaniel Winer
Marketing Director
daniel.winer@compassclinics.com.au 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project”, “should” or similar words, including negatives thereof, suggesting future outcomes. Management of the Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including data from publicly available governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of the retail cannabis industry which the Company believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. While the Company is not aware of any misstatement regarding any industry or government data presented herein, the retail cannabis industry involves risks and uncertainties and is subject to change based on various factors.
Forward-looking statements are not a guarantee of future performance and are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company’s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e52045f5-e820-43b1-9d91-9f5d3e5e9622

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/27/1907468/0/en/500-Patients-in-100-Days-and-Investing-in-Australian-Companies-Compass-Lifestyle-Clinics-Looks-towards-the-future-of-Medicinal-Cannabis.html?f=22&fvtc=5&fvtv=41223728

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Radient Technologies Inc. Releases First Quarter 2020 Financial Results and Provides Corporate Update

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EDMONTON, Alberta, Aug. 27, 2019 (GLOBE NEWSWIRE) — Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture: RTI; OTCQX: RDDTF), a global innovator in the industrial scale extraction and downstream processing of premium grade cannabis and hemp derivatives, has released its financial results for the first quarter of its fiscal year 2020, ending June 30, 2019. The financial statements and Management’s Discussion & Analysis are available under the Company’s profile at www.SEDAR.com.
Financial Highlights:Strong cash position:As at June 30th, 2019 the Company had maintained a cash position of CAD $23.5 million.Large inventory for increased future revenue generation:As part of the Company’s business model, which will allow it to benefit from advantages related to cost, scale, and yield provided by its proprietary extraction and processing platform, Radient has secured a large inventory of cannabis biomass (valued at CAD $21.7 million), which will be processed at its Edmonton I manufacturing facility into extracts for sale to Canadian Licensed Producers. This inventory is mainly the result of Radient’s purchase of CAD $19.5 million worth of dried cannabis biomass from Canadian Licensed Producers, including Aurora Cannabis Inc. (“Aurora”), which the Company initially announced on July 8, 2019.
 
Radient has secured buyers for the majority of these extracts. Revenues earned from the sale of these extracts are expected to be in excess of the value of the current total inventory of dried cannabis biomass (CAD $21.7 million), and the Company expects this will have a meaningful positive impact on its earnings reported across fiscal Q2 2020 and/or fiscal Q3 2020. Due to various supply chain factors including shipment of biomass, product analysis and delivery of final product, the Company expects the majority of this revenue will be reported in fiscal Q3 2020.
Corporate Update:Successful scale up of throughput at Edmonton I facility:Since the commencement of extraction and processing activities at its Edmonton I facility (“Edmonton I”) in March 2019, Radient has begun to significantly scale up throughput batch sizes of cannabis biomass by multiples of 5x – 10x, in line with the Company’s expectations. Edmonton I has a throughput capacity of 56,0000 kg/ year of cannabis at full capacity.Recovery and quality of cannabinoids has exceeded expectations:Radient is pleased to report results from the scale-up at Edmonton I have proven:Cannabinoid recovery (yield) from biomass is consistently above 90%, and up to 99%.Cannabis extracts have maintained product stability, including negligible cannabinoid degradation.  Hemp processing line on track for completion:Radient’s Edmonton II Facility (“Edmonton II”), dedicated to the extraction and downstream processing of CBD from hemp, is on track for completion at the end of calendar 2019. Upon completion, Edmonton II is expected to have an annual throughput capacity of 420,000 kg/ year of hemp.Expansion into Germany:Radient’s Germany facility (‘Germany”) is expected to begin initial commissioning in the second half of calendar 2020, scaling up to its full capacity of 280,000 kg of cannabis and 2.8 million kg/ year of hemp thereafter. Please refer to the subsection titled “Germany” under “Cannabis Activities” in the MD&A for further details.Expanded throughput capacity in Canada:Radient’s Edmonton III facility (“Edmonton III”), currently under construction, is expected to be commissioned in the second half of calendar 2020, scaling up to its full capacity of 280,000 kg of cannabis and 2.8 million kg/ year of hemp thereafter.
 
Upon completion of its Edmonton II, Edmonton III and Germany facilities, Radient will have a combined total annual throughput capacity of more than 600,000 kg/year of cannabis and more than 6 million kg/ year of hemp across Canada and Germany.EU GMP compliance:Radient is building both its Edmonton III and Germany facilities to be EU GMP compliant.Post-Reporting:Improved working capital via Amended Loan Facility Agreement:The Company announced the amendment of its original loan facility with Moskowitz Capital Mortgage Fund on August 26, 2019, which increased the amount of the loan from CAD $5.5 million to $8.5 million, and extended the maturity date of the loan from November 1, 2020 to November 1, 2021.Consumer product manufacturing:In anticipation of upcoming changes to the Cannabis Act, which will make the production and sale of edible cannabis, cannabis extracts and cannabis topicals legal in Canada as of October 2019, Radient has been developing a range of compounds and formulations to meet anticipated demand of its clients. In particular, Radient has been focusing on formulation development for various vaping products, edible cannabis products, cannabis extracts and cannabis topicals that its clients will be introducing into the Canadian marketplace. The Company has developed vaping liquid formulations for commercialization and is preparing its manufacturing operations for the production of vaping liquids and cartridge filling, and expects the production of vaping liquid will begin in fiscal Q3 2020. Management Commentary:“This is a key inflection point for Radient,” Denis Taschuk, President & CEO of Radient commented. “During fiscal Q1 2020 we proved our processing and manufacturing capabilities with respect to cannabis, and subsequently acquired a large inventory of cannabis biomass in order to develop white label cannabinoid derivatives for sale to Canadian LPs. We see this as a significant turning point for Radient as a revenue generating company, and we expect this will be clearly reflected in our Q2 2020 and/ or Q3 2020 financials.”  About Radient 
Radient Technologies provides industrial-scale manufacturing solutions for premium natural ingredients and products. Utilizing its patented MAP™ extraction technology, Radient delivers superior customer outcomes in terms of ingredient purity, yield, and cost, serving global market leaders in industries such as foods & beverages, nutraceuticals, pharmaceuticals, cosmetics, and personal care. Since 2016, Radient has expanded its offerings to enter the cannabinoids market, using its proprietary platform to provide premium ingredients including those that contain a broad range of cannabinoid and terpene profiles. Please visit www.radientinc.com for more information.
SOURCE: Radient Technologies Inc.Investors please contact: William (Bill) Wasson, Senior VP of Capital Markets and Investor Relations: wwasson@radientinc.comMedia/press please contact: Caitlin Cheadle, Director of Communications: ccheadle@radientinc.comForward Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations; the construction of the Company’s facilities; the Company’s future revenues and timing of such revenues; the Company’s future products; the Company’s ability to sell its products and attract new customers; the expected throughput capacities at its facilities as set out in the “Corporate Update” section above;  the future recovery and quality of the Company’s extracts; the Company’s ability to expand its business internationally; the Company’s ability to grow its business in the cannabis sector and the Company’s future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause 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. Accordingly, readers should not place undue reliance on forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/27/1907438/0/en/Radient-Technologies-Inc-Releases-First-Quarter-2020-Financial-Results-and-Provides-Corporate-Update.html?f=22&fvtc=5&fvtv=41223728

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Cannabis World Congress & Business Exposition Brings Industry’s Top Conference Program to Los Angeles

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NEW YORK, Aug. 27, 2019 (GLOBE NEWSWIRE) — via CannabisNewsWire – Leading Edge Expositions, a company specializing in B2B trade show production, is proud to announce further details of the upcoming Cannabis World Congress & Business Exposition (CWCBExpo) in Los Angeles, California. It will run from September 26 – 28, 2019, at the Los Angeles Convention Center.
The expo has garnered a number of high-powered sponsors. Their diamond sponsor, Freed, is a prominent CBD company known for promoting healthy living. Other big sponsors include Marcum LLP, an accounting group; Zuber Lawler, a global law firm; and CCELL, known for its disruptive vaping technology. These and other leading companies in the cannabis space have come together to help make CWCBExpo a highly valuable and memorable occasion.Event organizers have also ensured the conference schedule will be packed with interesting and informative speeches, workshops and networking opportunities for all guests in attendance. The keynote address, scheduled for September 26, will be given by Steve White, CEO of Harvest, Inc. He will discuss social justice in the cannabis industry.Other speeches on the agenda will cover the cannabis industry from a myriad of angles, including the medical field, business, law and growers. For those interested in business and law, there will be additional workshops detailing how to manage the blossoming cannabis industry and what laws and regulations business owners should be aware of while their businesses grow.Finally, to provide greater ROI to every guest, speaker and sponsor attending, the expo will include multiple networking events designed to foster new business relationships to capitalize on the fast-growing market. On the evenings of September 26 and 27, CWCBExpo will offer networking opportunities for guests to unwind while making useful connections. Attendees are also encouraged to get involved in the various workshops to make important connections.Demand for CWCBExpo is sure to grow even further as the event draws closer. Attendees who purchase their tickets now will benefit from discounted pricing. To register for the upcoming Cannabis World Congress & Business Expo in Los Angeles, visit: https://www.cwcbexpo.com/attend-registration-los-angeles/About Cannabis World Congress & Business Expositions (CWCBExpo)
CWCBExpos are the premier business-to-business events for the legalized cannabis industry and are held 3 times per year in the largest financial, business, and media markets—New York, Los Angeles and Boston. Connect on Twitter, Facebook, Instagram, and LinkedIn: @cwcbexpo.
General Inquiries:
Leading Edge Expositions, LLC
Paramus, New Jersey
201.580.2050 Office
Media Contact:
CannabisNewsWire (CNW) 
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
editor@CannabisNewsWire.com

Original story can be found at: http://www.globenewswire.com/news-release/2019/08/27/1907192/0/en/Cannabis-World-Congress-Business-Exposition-Brings-Industry-s-Top-Conference-Program-to-Los-Angeles.html?f=22&fvtc=5&fvtv=41223728

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