RED DEER, AB, Dec. 7, 2020
/CNW/ - CANADABIS CAPITAL, (STIGMA GROW), (INDICAtive Collection),
a National pioneer in cannabis concentrate production, research,
cultivation and distribution, reports financial results for the
fourth quarter and full fiscal year ended July 31, 2020. All
financial information in this press release is reported in CAD
dollars, unless otherwise indicated.
Revenue Increased exponentially to $4,428,831
Million in Full Fiscal Year 2020 Compared to the
Prior Year
Revenue Increased by 535% in the Fourth
Quarter Compared to Q3 with a Dramatic increase over Q1 2019 with
Sequential Quarterly Revenue Growth
Signed and Closed 95% of the outstanding
shares of Goldstream Cannabis Inc., which holds the rights to
access 13 acres of land on Vancouver Island, BC, which is zoned and
ideal for outdoor /Greenhouse cannabis production to provide
consistent, cost effective inputs for extraction, in addition to
$2,000,000 cash. The transaction was
valued at $3.5 million.
The Company opened its flagship cannabis retail store,
operating as "INDICAtive Collection", serving customers in
Alberta.
The Company was granted its amendment by Health
Canada to its existing license to include sales of
Cannabis products on March 6, 2020,
through its wholly owned subsidiary 1998643 Alberta Ltd. (o/a
Stigma Grow). This license from Health Canada allows the company to
sell cannabis that is cultivated at its 66,000 sq. ft.
facility.
"Our full year results show exceptional company growth and the
hitting of all targets laid out in 2019, with fourth quarter
results indicative of sales growth momentum expected to continue
for the remainder of 2020 and into 2021," said Travis
McIntyre, CEO, CanadaBis. "We have faced both industry and COVID
challenges this year, but we remain committed to increasing
revenues and cash flows to steadily increase value for our
shareholders. We are extremely proud of all of our in-house team
for the great deal of work put in to launching multiple
FIRST-TO-MARKET SKUs.
Entering 2021, CanadaBis Capital boasts a diversified
business model comprised of Cultivation, Contract Manufacturing and
Retail, as well as Stigma-branded concentrate products currently
sold in five provinces. This positions us very well in the current
3.0 market environment. We are still in the early days of this
emerging 3.0 industry and will continue being good stewards of
shareholder capital as we aim to build the country's most trusted
and valued 3.0 cannabis company."
2020 Company Highlights
- Increase of $4,428,831 in revenue
as compared to the prior year, with large portion of the sales
occurring in 2020 Q4. Growth in revenues resulted from the launch
of several products across multiple provinces as well as contract
manufacturing fees;
- On August 13, 2019, the Company
acquired 95% of the outstanding shares of Goldstream Cannabis Inc.,
which holds the rights to access 13 acres of land on Vancouver
Island, BC, which is already zoned for cannabis production, in
addition to $2,000,000 cash. The
transaction was valued at $3.5
million with consideration consisting of 11,666,666 common
shares of CanadaBis at $0.30 per
share;
- On October 5, 2019, the Company
opened its flagship cannabis retail store in Red Deer Alberta, operating as "INIDICAtive
Collection", serving customers throughout Central Alberta;
- The Company was granted its amendment by Health Canada to its
existing license to include sales of Cannabis products on
March 6, 2020, through its wholly
owned subsidiary 1998643 Alberta Ltd. (o/a Stigma Grow). This
license from Health Canada allows the company to sell cannabis that
is cultivated at its 66,000 sq. ft. facility;
- On April 19, 2020, the Company
oversaw the first shipment of 6000+ packages of multiple SKUs of
concentrates;
- On July 31, 2020, the Company
completed a non-brokered private placement of 8,295,996 voting
common shares for proceeds of $1,244,399, or $0.15 per voting common share;
- The Company continues to develop the facility and processing
areas to triple the existing cultivation space and double the
processing capacity. The expansion work is expected to be completed
in 2021 Q2; and
- The Company through its wholly owned subsidiary 1998643 Alberta
Ltd. (o/a Stigma Grow) secured sales channels for its concentrates
and flowers in the provinces of Alberta, British
Columbia, Saskatchewan,
Ontario, Nova Scotia, and New
Brunswick, with other provinces to follow.
2020 Financial
Highlights
|
|
|
|
|
2020
|
2019
|
Revenue, net of
taxes
|
$
|
4,428,831
|
$
|
-
|
Cost of
sales
|
|
2,920,730
|
|
-
|
Gross profit
excluding fair value items
|
|
1,508,101
|
|
-
|
Gross profit
(loss)
|
|
1,156,685
|
|
(46,776)
|
Fund flow
(1)
|
|
(2,471,551)
|
|
(1,472,402)
|
Net loss and
comprehensive loss
|
|
(5,391,080)
|
|
(9,002,860)
|
Income per share
(basic and diluted)
|
$
|
(0.04)
|
$
|
(0.05)
|
(1)
Non-GAAP measure. See "Non-GAAP Measures"
|
Fourth Quarter 2019 Financial Highlights
Revenue increased 535% to $4,428,831 million compared to
the third quarter of this year, driven by the launch of 3.0 BHO
products into the market. These products were not presented by any
other LP in Canada and represent a
large portion of sales in mature markets such as California, Oregon and Colorado. "We believe that the future of
cannabis is in the 3.0 marketplace and we are currently leading the
charge in Canada", says
Travis McIntyre, CEO CanadaBis
Capital Inc.
Select Quarterly
Financial Information
|
|
2020
Q4
|
2020
Q3
|
2020
Q2
|
2020
Q1
|
2019
Q4
|
2019
Q3
|
2019
Q2
|
2019
Q1
|
Revenue, net of
taxes
|
$
|
3,581,720
|
$
|
563,595
|
$
|
230,807
|
$
|
52,709
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
Cost of
sales
|
|
2,309,563
|
|
404,288
|
|
171,752
|
|
35,126
|
|
-
|
|
-
|
|
-
|
|
-
|
Gross profit
excluding fair value items
|
|
1,272,157
|
|
159,307
|
|
59,055
|
|
17,583
|
|
-
|
|
-
|
|
-
|
|
-
|
Gross profit
(loss)
|
|
1,210,366
|
|
116,998
|
|
(138,803)
|
|
(31,876)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Non-GAAP measure. See "Non-GAAP Measures"
|
About CanadaBis Capital Inc.
CANADABIS CAPITAL INC (TSXV: CANB) is a National pioneer in
cannabis concentrate production, research, cultivation and
distribution, leading the charge to bring in demand 3.0 BHO
products to market across Canada.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION: This news release includes certain
"forward-looking statements" under applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements with respect to our business and operations
including development and expansion plans and the timing thereof.
Forward-looking statements are necessarily based upon a number of
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors which may cause
the actual results and future events to differ materially from
those expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: compliance with extensive
government regulation, the general business, economic, competitive,
political and social uncertainties; requirement for further
capital, delay or failure to receive board, shareholder or
regulatory approvals; the results of operations and such other
matters as set out in the Filing Statement available on SEDAR at
www.sedar.com. There can be no assurance that such statements 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 statements. Investors are cautioned that
forward-looking information is not based on historical facts but
instead reflects management's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made. Although we believe
that the expectations reflected in such forward-looking information
are reasonable, such information involves risks and uncertainties,
and undue reliance should not be placed on such information, as
unknown or unpredictable factors could have material adverse
effects on our future results, performance or achievements.
Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
information prove incorrect, actual results may vary materially
from those described herein as intended, planned, anticipated,
believed, estimated or expected. Although the Company has attempted
to identify important risks, uncertainties and factors which could
cause actual results to differ materially, there may be others that
cause results not to be as anticipated, estimated or intended.
CanadaBis Capital does not intend, and does not assume any
obligation, to update this forward-looking information except as
otherwise required by applicable law.
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.
SOURCE CanadaBis Capital Inc.