James E. Wagner Cultivation Corporation (“JWC” or the “Corporation”) (TSXV:JWCA,OTCQX:JWCAF), announced today the achievements as disclosed by its unaudited financial and operational statements, for the second quarter of fiscal 2019 which ended on March 31, 2019 (“Q2 2019”).
James E. Wagner Cultivation Corporation (“JWC” or the “Corporation”) (TSXV:JWCA,OTCQX:JWCAF), announced today the achievements as disclosed by its unaudited financial and operational statements, for the second quarter of fiscal 2019 which ended on March 31, 2019 (“Q2 2019”). The Corporation is pleased to report that its interim financial statements and management’s discussion and analysis for Q2 2019, are available on SEDAR at www.sedar.com. All amounts expressed are in Canadian dollars unless otherwise noted.
Nathan Woodworth, President and Chief Executive Officer, noted, “Q2 was a transitional quarter for JWC. The focus was on preparation for anticipated receipt of the cultivation licence for JWC 2, which was received on March 29, 2019. JWC’s preparation bore good results; by the end of the day following receipt of the cultivation licence, the physical transfer of all prepared plant materials into the JWC 2 facility was completed. A little less than a month later, both of the JWC facilities were operating at full capacity and our operational resources were again substantially focused on cultivating, producing, and harvesting clean, consistent, aeroponically grown cannabis. With construction continuing on the second phase at JWC 2, the Corporation is expecting to add a further 35,000 square feet of flowering space within the next few months. The Phase 1 space added at the end of Q2 immediately upon receipt of the Health Canada cultivation licence, is expected to see its first complete harvest cycle before the end of the following quarter. This is expected to provide significant and continuously increasing revenues commencing in the second half of fiscal 2019 and beyond.”
Selected Summary of Q2 2019 Results:
|March 31, 2019|
|September 30, 2018 ($)||%|
|Cash and cash equivalents||2,253,674||8,504,790||(74)%|
|Short Term Investments||2,502,501||6,017,153||(58)%|
|Agricultural produce and biological assets||2,752,263||2,607,433||6%|
|Other working capital||1,407,930||604,172||133%|
|Other liabilities and long-term debt||6,819,994||3,411,615||100%|
|Loss from operations||3,434,883||1,059,706||224%||5,810,816||2,423,734||140%|
|Net and comprehensive loss||3,405,264||1,947,750||75%||5,730,553||3,416,827||68%|
|Net and comprehensive loss per share||0.04||0.03||33%||0.06||0.05||20%|
For the six months ended March 31, 2019, the Corporation’s net and comprehensive loss was $5,730,553 (as compared with $3,416,827 for the six months ended March 31, 2018).
The Corporation had just over 157 kg of dried cannabis, and slightly under 14 litres of formulated oil in its storage vault at the end of Q2 2019. Revenues in the second quarter were relatively flat to Q1. With the addition of JWC 2, the Corporation’s second production facility located at 530 Manitou Drive, Kitchener, at the end of Q2 2019, the Corporation is expecting to see the first harvests late in the following quarter, with impacts on revenue and profitability expected subsequently.
The Corporation has been and is continuing to build out the JWC 2 facility. During Q2 2019, the Corporation entered into two long term debt arrangements. Adding these arrangements to the Corporation’s existing capital ensures that JWC has the necessary liquidity and flexibility to meet its growth objectives.
About James E. Wagner Cultivation Corporation
JWC’s wholly-owned subsidiary is a Licensed Producer under the Cannabis Regulations, formerly the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). JWC is a premium cannabis brand, focusing on producing clean, consistent cannabis. JWC uses an advanced and proprietary Dual Droplet™ aeroponic platform named GrowthSTORM™. JWC was founded as a family company and is based on family values. JWC began as a collective of patients and growers under the Marihuana Medical Access Regulations (the precursor to ACMPR). Since its inception, JWC has remained focused on providing the best possible patient experience. JWC’s operations are based in Kitchener, Ontario. Learn more at www.jwc.ca.
Notice regarding forward-looking statements:
This press release contains statements including forward-looking information for purposes of applicable securities laws (“forward-looking statements”) about JWC and its business and operations which include, among other things, statements regarding the increasing harvest of product from either or both of the Corporation’s facilities, the expansion of its production facilities and the use and availability of debt financing to fund the expansion, the addition of new grow rooms production capacity at the Corporation’s facilities, and the financial growth of the Corporation. The forward-looking statements can be identified by the use of such words as “will”, “expected”, “approximately”, “may”, “could”, “would” or similar words and phrases. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those implied in the forward-looking statements. For example, risks include risks regarding the cannabis industry, economic factors, the equity markets generally, building permit related risks and risks associated with growth and competition as well as the risks identified in the Corporation’s Filing Statement available under the Corporation’s profile at www.sedar.com. Although JWC has attempted to identify important factors that could result in actual actions, unanticipated events may cause results to differ materially from those described in forward-looking statements, and there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are based on current assumptions which management believes to be reasonable. The Corporation disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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.