James E. Wagner Cultivation Corporation (“JWC” or the “Company”) (TSXV:JWCA) announced today the achievements, financial and operational results for the three and nine months ended June 30, 2018. The Company’s wholly owned subsidiary is a licensed producer of cannabis under the Access to Cannabis for Medical Purposes Regulations (the “ACMPR”). The Company is pleased to report that its interim financial statements and management’s discussion and analysis for the three and nine months ended June 30, 2018 are available on SEDAR at www.sedar.com. All amounts expressed are in Canadian dollar unless otherwise noted.
Third Quarter Ended June 30, 2018 Highlights:
- Completed a qualifying transaction on June 7, 2018 (the “Transaction”) under the policies of the TSX Venture Exchange (the “TSXV”), and began trading under the ticker JWCA on June 11, 2018;
- Completed an $18 million brokered private placement financing conducted by a syndicate of agents co-led by Haywood Securities Inc. and Eight Capital and including AltaCorp Capital Inc., INFOR Financial Inc., Beacon Securities Limited and Mackie Research Capital Corporation;
- Entered in to an agreement with MediPharm Labs Inc. to create a cannabis oils program;
- Continued to build out its 345,000 square foot second facility to support the Company’s growth strategy and prepare for the implementation of Canada’s recreational market; and
- Made its first sales under the ACMPR, after acquiring a sales license amendment at the end of the second quarter.
Selected Summary of Quarterly Results:
|June 30, 2018 ($)||September 30, 2017 ($)||% change|
|Cash and cash equivalents||18,049,416||6,858,659||163||%|
|Agricultural produce and biological assets||2,003,320||249,843||702||%|
|Other working capital||794,834||278,276||186||%|
|Q3 2018 ($)||Q3 2017 ($)||% change||Q3 2018 YTD ($)||Q3 2017 YTD ($)||% change|
|Net and comprehensive loss||4,648,038||560,872||729||%||8,064,865||907,820||788||%|
|Net and comprehensive loss per share (basic and diluted)||0.06 & 0.05||0.01||491% & 401%||0.12 & 0.12||0.02||498% & 413%|
For the three and nine months ended June 30, 2018, the Company’s net and comprehensive loss was $4,648,038 and $8,064,865, respectively.
The Company experienced higher than usual expense during the three months ended June 30, 2018 (“Q3”), as it completed the Transaction. Listing expense was $1,795,724. Other significant charges during the quarter were for professional fees, $596,186, as legal and accounting fees increased to support the Transaction and activity supporting the Transaction. The Company also incurred a fair value charge related to contingent shares issued on June 1. That charge was $462,657. Year to date professional fees were $1,475,231 and the fair value charge for contingent shares was $1,482,337.
The Company ended Q3 with just over 138kg of dried cannabis in its storage area. Sales to patients began during Q3, and the Company is focused on building out its patient roster during Q4, and is working with several clinics locally, to that end.
The Company is also looking to leverage its relationship with Canopy Growth Corporation, and has begun shipping product for inclusion on their Craft Grow store shelves. Once the shipments have been cleared, patients should see them available sometime in September 2018.
The Company has also begun shipping product to MediPharm Labs Inc. as part of its agreement with MediPharm to support its cannabis oil program.
The Company is currently operating out of a 15,000 square foot facility in Kitchener, Ontario. Construction is underway at a second, 355,000 square foot facility also in Kitchener. This facility is expected to have its first set of grow rooms and all support areas, ready to begin production in Q1 of fiscal 2019. Once the first set of grow rooms is operational, the Company will be bringing additional rooms on line every six to eight weeks, and expects to increase total capacity by nearly 600% by the third quarter of fiscal 2019.
The Company also recently announced that it has entered in to an offer to lease two retail properties for use as cannabis retail outlets, upon receipt of the necessary regulatory approvals. The Company is very excited to signal its desire to participate directly in the sale of legal cannabis products to Canadians.
About James E. Wagner Cultivation Corporation
JWC’s wholly-owned subsidiary is a licensed producer under ACMPR and JWC is a premium cannabis brand, focusing on producing clean, consistent cannabis. JWC uses an advanced and proprietary aeroponic platform named GrowthstormTM. JWC was founded as a family Corporation, 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.
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 JWC and any information with respect to the potential growth of the Company and increasing production capacity at its facilities and the proposed shipment of its products and the benefits of the arrangements entered into with customers and partners. The forward-looking information contained in this news release are based on JWC’s current internal expectations, estimates, projections, assumptions, and beliefs and views of future events which management believes to be reasonable in the circumstances, including expectations and assumptions regarding: general economic conditions, the expected timing and cost of expanding the Company’s production capacity, the internal opportunities, the development of new products and product formats, the Company’s ability to retain key personnel, the Company’s ability to continue investing in its infrastructure to support growth, the impact of competition, trends in the Canadian medical cannabis industry and changes in laws, rules, and events, performance or results, and will not necessarily be accurate indications as to whether, or the times at which, such events, performance or results will occur or be achieved. The forward-looking statements can be identified by the use of such words as “anticipated”, “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, funding and grant related risks and risks associated with growth and competition as well as the risks identified in the Company’s Filing Statement available under the Company’s profile at www.sedar.com. Although JWC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, 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 Company 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.
For more information about this release, please contact:
Nathan Woodworth, the President and Chief Executive Officer
Phone: (519) 594-0144 x421
George Aizpurua, Vice President of First Canadian Capital Corp.
Phone: (416) 742-5600