Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE:LOVE, OTCQB:LOVFF, FRA:8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and sale of premium dried cannabis and cannabis-infused products, today announced financial results for the three-month period ended November 30, 2019. Unless otherwise noted, all dollar amounts are expressed in Canadian dollars.

OPERATIONAL HIGHLIGHTS


  • Submitted to Health Canada site evidence package for Phase One of the facility in Farnham, Quebec, to obtain a license to cultivate, process and sell of premium dried cannabis and cannabis-infused products;
  • Secured a first mortgage against the Farnham Facility for $6 million with a Canadian financial institution, resulting in reduced annual interest expense.

“Operationally during the quarter, we have been focused on final, detailed preparations for the Farnham Facility in anticipation of being given the green light to commence cultivation,” said Barry Laxer, Chief Operating Officer of Cannara. “The building, with 18 modern and large grow rooms and state-of-the-art technical features, is poised to become a significant factor in Quebec’s cannabis landscape, growing what we believe will quickly become the consumer’s preferred choice: indoor grown, high THC, robust flowering and crystallization with a rich terpene profile and aroma.”

RESULTS OF OPERATIONS
The Company operates in two segments: 1) Indoor cannabis operations which encompasses the cultivation, processing and sale of premium dried cannabis and cannabis-infused products exclusively for the Canadian market (Canadian operations) and 2) E-commerce retailer of curated selection of top tier U.S. hemp-based CBD products exclusively for the U.S. market. (U.S. operations).

THREE-MONTH PERIOD ENDED NOVEMBER 30, 2019

Canadian Operations
For the three-month period ended November 30, 2019, the segment incurred $1,856,014 in operating expenses compared to $2,190,771 in the same period in the prior year resulting in a favorable decrease in operating expenses of $334,757. The segment operating loss for the three-month period ended November 30, 2019 was also $1,856,014 compared to $2,190,771 in the same period of the prior year. The Company believes that it will be able to generate revenues from this segment to cover its operating costs once Cannara receives its License and it is able to commercialize its products.

U.S. Operations
For the three-month period ended November 30, 2019, the Company generated product revenue of $5,721 and incurred $3,923 in costs of goods sold. ShopCBD.com was launched during November 2019.

For the three-month period ended November 30, 2019, the segment incurred $600,969 in operating expenses compared to nil in the same period of the prior year as the segment was only created in the third fiscal quarter of 2019. Current year operating expenses mainly comprise $204,364 in salaries and benefits to develop, support and operate the business, $188,112 in marketing spend to launch and drive traffic to ShopCBD.com and $156,372 in general and administrative expenses relating to software costs to operate the e-commerce platform and office-related expenses.

The segment incurred $599,171 in operating loss from its U.S. operations, of which $377,403 is attributable to the shareholders of the Company.

Other
In order to increase cash flow while the Company continues its phased approach to construction at the Farnham Facility, the Company leased 333,551 square feet of the total 625,000 available square feet to two tenants.

The Company generated lease revenues of $527,528 for the three-month period ended November 30, 2019 compared to $518,443 in the same period of the prior year as a result of contractual rent escalations. In order to realize these lease revenues, the Company spent $29,632 in lease operating costs during the three-month period ended November 30, 2019 compared to $52,538 in the same period of the prior year. The decrease in lease operating expenses is attributable to the timing of property tax expenses incurred and the cancellation of a property management agreement in October 2019 as the Company will internally manage the property to increase net revenues from leases.

The Company generated $497,896 in operating income from other activities for the three-month period ended November 30, 2019 which is comparable to $465,905 earned in the same period of prior year.

The reported net loss from other activities for the three-month period ended November 30, 2019 was $485,815 compared to $114,455 in the same period of the prior year, resulting in an unfavorable increase in net loss of $371,360. The increase is attributable to:

  • An increase of $93,282 in share-based compensation as a result of stock options granted as at November 30, 2019 compared to November 30, 2018;
  • An increase of $400,367 in amortization as the Company began depreciating the Farnham Facility and related assets effective September 12, 2019;
  • A decrease of $90,298 in finance expense which is mainly attributable to the lower interest rate paid on the mortgage obtained in October 2019.

For the three-month period ended November 30, 2019, the Company reported a total comprehensive loss of $2,944,233 or a loss per share of $0.01; compared to $2,305,336 or a loss per share of $0.01 in the same period of prior year.

LIQUIDITY AND CAPITAL RESOURCES
The Company reported a net working capital amount of $11,358,538 as at November 30, 2019 (August 31, 2019 – $22,737,628). The decrease in net working capital is mainly attributable to the classification of the new mortgage which has been classified as current on the condensed interim consolidated statement of financial position as the agreement includes a condition that the mortgage is repayable on demand.

The Company believes it has expended most of the required capital required to operationalize Phase 1 of the Farnham Facility. During the year ending August 31, 2020, the Company anticipates to further spend on production equipment related to cannabis packaging, extraction and derivatives.

The Company expects that its existing cash resources as at November 30, 2019 will enable it to fund its planned operating expenses for at least the next twelve months from November 30, 2019.

OPERATING ACTIVITIES
For the three-month period November 30, 2019, cash used for operating activities was $3,383,725. The cash flow used in operating activities was primarily attributable to expenses relating to salaries of personnel, initial expenses to prepare the Farnham facility for operations including the implementation of an ERP system, professional fees for the development of the Company’s segmented business operations, additional insurance premiums to cover a purpose-built cannabis facility, travel and public company related expenses.

FINANCING ACTIVITIES
For the three-month period ended November 30, 2019, cash used in financing activities amounted to $399,467 which is mainly attributable to interest paid on the mortgage of $301,868 and $68,904 on lease-related payments.

During the three-month period ended November 30, 2019, the Company received a mortgage of $6,000,000, and the funds obtained were used to pay down the existing mortgage.

INVESTING ACTIVITIES
For the three-month period ended November 30, 2019, cash used for investing activities amounted to $5,755,462. Investing activities during the period relate substantially to construction and the acquisition of production equipment in order to render Phase 1 of the Farnham Facility operational in anticipation of the License being granted early in the new year. In addition, the Company invested $58,663 for the technical development of its online e-commerce platform in relation to its U.S. operations.

For the three-month period ended November 30, 2019, the Company received $88,781 in interest income relating to interest earned on cash balances. There are no restrictions on the Company’s ability to use its cash for its operational needs while it earns interest on the unused balance.

OUTSTANDING SHARES
As at the date of this report, the Company had 706,970,705 common shares outstanding. There were 14,748,710 warrants and 39,764,424 options issued.

For further information, the complete Financial Statements and Management’s Discussion and Analysis for the three-month period ended November 30, 2019, along with additional information about the Company and all of its public filings are available at www.sedar.com and the Company’s website.

About Cannara Biotech
Cannara Biotech (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech’s facility will produce premium-grade indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding “Forward-Looking” Information

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Click here to connect with Cannara Biotech Inc. (CSE:LOVE) for an Investor Presentation.

Source

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Ability to test the taste, smell, feel and visual appeal of beverages in development will provide a significant advantage for BevCanna and its white-label clients

Emerging leader in innovative health and wellness beverages and products, BevCanna Enterprises Inc. ( CSE:BEV , Q:BVNNF , FSE:7BC ) (“ BevCanna ” or the “ Company ”) announces today that it has been granted an amendment to its Health Canada-authorized Cannabis Research License to include sensory evaluations of cannabis beverages in its product development trials. This update to the License will allow BevCanna to conduct on-site human assessments of the taste, smell, feel and visual appeal of its products in development.

Keep reading... Show less

Zelira TherapeuticsLtd (ASX:ZLD,OTCQB:ZLDAF), a global leader in the research and development of clinically validated cannabinoid medicines, is pleased to announce that it has raised a total of US$5 million from Quincy Street Capital LLC (Quincy Street), a US-based family office fund, comprising:

  • US$3.5 million (A$4.79 million) via a placement of 79,908,676 Zelira fully paid ordinary shares at A$0.06 per share (Placement), a 54% premium to the stock’s last closing price
  • 1 unlisted option for every 2 ordinary shares issued, expiring 2 years from the date of issue with an exercise price of A$0.09 per option, with 39,954,338 total unlisted options to be issued
  • US$1.5 million (A$2.05 million) via an equity investment in Ilera Derm LLC (ZeliraDermatology) for a 3% shareholding in that company, valuing Zelira Dermatology at US$50 million.
Keep reading... Show less

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS

Avicanna Inc. (” Avicanna ” or the ” Company “) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of organic and sustainable plant-derived cannabinoid-based products, is pleased to announce that it has closed a non-brokered private placement (the ” Offering “). Under the Offering, the Company has issued an aggregate of 4,587,022 units (the ” Units “) at a price of CAD$0.85 per Unit for aggregate gross proceeds of approximately CAD$3.9 million.

Keep reading... Show less

Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) (“Nextleaf”, “OILS”, or the “Company”), a federally regulated producer of cannabis oil that owns one of the largest portfolios of U.S. patents for the extraction and distillation of cannabinoids, is pleased to announce the Company has entered into a supply agreement with Quebec-based licensed producer Medicibis (“Mendo”) to supply its medical platform www.Mendocannabis.ca with Glacial Gold™ branded products.

Mendo operates an online portal for medical patients that ships nationwide through www.Mendocannabis.ca. Glacial Gold™ CBD and THC vapes and distilled oils will be distributed by Mendo to their medical cannabis clients in Quebec and across Canada.

Quebec is the third-largest cannabis market in Canada, representing approximately 15%[1] of Canadian cannabis retail sales in the country, and approximately 22% of the Canadian population[2].

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/5347/100149_54a84d0cc4d15940_001.jpg
Figure 1: Glacial Gold CBD and THC Vapes and Distilled Oils

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5347/100149_54a84d0cc4d15940_001full.jpg

Canadian spending on medical cannabis totaled $587 million in 2020[3]. Medical cannabis has become an important component of Canadian healthcare, with $119 million of medical cannabis purchases reimbursed by the Federal Government through Veterans Affairs Canada in 2020[4]. Despite Canada’s progressive cannabis regulation, price is still a major barrier for many medical patients.

Nextleaf leverages its patented high-efficiency ingredient processing technology to gain a competitive advantage and improve cannabis oil economics through the low-cost production of cannabis distillate standardized for potency and purity.

“Launching accessibly priced Glacial Gold™ vapes and distilled oils in Canada’s medical market and in Quebec have been important milestones for Nextleaf. We believe Mendo and their Quebec-based medical platform is positioned to become one of the leading suppliers of medical cannabis to patients and veterans in this country,” said Paul Pedersen, co-founder and CEO of Nextleaf Solutions. “Our innovative technology enables us to produce high purity ingredients at a low cost per molecule to offer patients quality CBD and THC products.”

“We are delighted to work with Nextleaf to offer Glacial Gold™ products through our recently expanded national portal, accessible by medical patients Canada-wide,” said Jay Schwartz, Director of Mendo Medical. “We are excited to feature the seven Glacial Gold™ SKUs that launched last month in British Columbia and to help them launch two new CBD SKUs that we think patients will be eager to experience.”

Nextleaf launched its award-winning, prohibition-era brand Glacial Gold™ in British Columbia last month, receiving national attention for quality products at disruptive price points. Included in the initial launch of Glacial Gold™ were seven total SKUs, consisting of four 1-gram vape SKUs and three distilled oil SKUs.

Glacial GoldDistilled CBD 50 Oil, Distilled THC 30 Oil, and Distilled 30:30 Blend feature high-purity distillate in a base of organic coconut MCT oil for a premium consumption experience, without premium pricing. A clean tasting and neutral oil allows for the greatest flexibility in use and consumption occasions.

The initial vape lineup from Glacial Gold is offered in two potency levels to match the consumer’s tolerance level or consumption occasion. The Session THC Vape features a full potency THC profile for cannabis enthusiasts who seek a more elevated experience and connection. The Anytime 1:1 Vape is formulated with a balanced THC and CBD profile for consumers looking for a more moderate, go-to vape.

About Medicibis

Medicibis is a federally licensed producer of dried cannabis and distributes its products under the brand name ENDO. Medicibis operates out of its 20,000 sq.ft. facility located 15 minutes from downtown Montreal in St Jean Sur Richelieu. Medicibis operates an online portal for medical patients that ships nationwide through their website mendocannabis.ca. Mendo’s menu has been carefully curated to offer a variety of products from licensed producers from all over Canada. Mendo is positioned to become one of the leading suppliers of medical cannabis to patients and veterans in the country.

About Nextleaf®

Nextleaf is a federally regulated producer of cannabis oil that owns one of the largest portfolios of U.S. patents for the extraction and distillation of cannabinoids. Nextleaf distributes cannabis vapes and distilled oils under its award-winning prohibition-era brand, Glacial Gold™, and supplies cannabis distillate to its wholesale customers. Nextleaf’s proprietary closed-loop automated extraction plant in Metro Vancouver efficiently transforms cannabis and hemp grown in B.C. and throughout Canada into high-purity cannabis distillate at an industrial scale. Nextleaf is developing delivery technology and differentiated cannabinoid-based formulations through its Health Canada Research Licence with sensory evaluation of cannabis via human testing. The Company owns 17 U.S. patents and has been issued 95 patents globally.

Nextleaf Solutions trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.

Follow the Company across social platforms: Twitter, LinkedIn, Facebook, and Instagram.
www.nextleafsolutions.com

Follow Glacial Gold™ across social platforms: Instagram, Twitter, and Facebook. www.Glacial.Gold

For more information please contact:
Jason McBride, Corporate Development
604-283-2301 (ext. 219)
jason@nextleafsolutions.com

On behalf of the Board of Directors of the Company,
Paul Pedersen, CEO

Certain statements contained in this press release constitute “forward-looking statements”. All statements other than statements of historical fact contained in this press release, including, without limitation, those regarding the Company’s ability to capitalize on its IP portfolio, the Company’s strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “plan”, “continue”, “will”, “may”, “would”, “anticipate”, “estimate”, “forecast”, “predict”, “project”, “seek”, “should” or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company’s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company’s MD&A for the most recent fiscal period. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. The CSE has not reviewed or approved the contents of this press release.

Keep reading... Show less

Naturally Splendid Enterprises Ltd. (“Naturally Splendid“, “NSE” or “the Company”) (FRANKFURT:50N) (TSXV:NSP) (OTC:NSPDF) is pleased to announce the latest shipping container of NATERA Plant Based Foods from Australia has been received

In this shipment, we are excited to receive new SKUs including plant-based “Chick-Un Wings & Drumettes’ and a new Plant Based “Spicy Chick-Un Burger” that will be introduced to the Canadian Consumer. We also continue to receive more of our existing NATERA Plant Based Foods Breaded Cutlets (Schnitzel), Stuffed Chick-Un Breast (Garlic & Butter Flavoured), Sweet Chili Chick-Un Tenders, Seasoned Chick-Un Tenders, Chick-Un Nuggets, Chick-Un Patties, Crispy Fish-Un Fillets, Garlic Chick-Un Bites (Garlic & Butter Flavoured) and Cheesy Chick-Un Bites.

Keep reading... Show less