TORONTO, Feb. 25, 2019 /CNW/ - 48North Cannabis Corp.
("48North" or the "Company") (TSXV:NRTH), a leading
licensed cannabis producer focused on next-generation cannabis
products, has released its financial and operating results for the
three and six months ended December 31,
2018. The Company's financial statements and related
management's discussion and analysis for the period are available
on the Company's SEDAR profile at www.sedar.com and on the
Company's website at www.48nrth.com/investors.
Financial and Operating Highlights for Fiscal Q2 2019
- Sustained quarter over quarter revenue acceleration with
second-quarter revenue of $2.4
million, representing an 88 per cent increase over
first-quarter revenues of $1.3
million.
- Acquired Good & Green, a second licensed producer, with a
2019 production footprint expected to make 48North one of the
largest and lowest-cost producers of dried cannabis and
cannabis oil, as well as a leader in next-generation cannabis
products.
- Closed a $3,000,000 non-brokered
private placement from Canopy Growth Corp. ("Canopy Growth") (TSX:
WEED, NYSE: CGC), providing capital and liquidity to support the
continued expansion of 48North, including the development of its
100-acre farm and large-scale extraction capability.
Events subsequent to second-quarter fiscal 2019
- Submitted the Company's site evidence package to Health Canada
in connection with its licence application, submitted in
October 2018, for the Company's
100-acre outdoor farm in Brant County, Ont., providing Health
Canada with comprehensive evidence confirming that 48North has
successfully built the security provisions on its farm, as outlined
in its licence application, including but not limited to security
fencing, cameras, and intrusion and access control. 48North has
proactively taken this step to reaffirm its commitment and
preparedness to begin cultivating outdoor-grown organic cannabis
in June 2019.
- Closed a $7,045,000 non-brokered
private placement from a leading U.S. based private investment
fund, bringing a total of $10 million
in new equity to the Company.
- Signed a preferred letter of intent with the SQDC, Quebec's sole legal retailer for recreational
cannabis. The agreement includes 1,200 kg of organic sun-grown
cannabis from 48North's outdoor cultivation facility located in
Brant County, Ont., and 180 kg of indoor-grown cannabis from the
Company's DelShen Therapeutic Corp. facility in Kirkland Lake, Ont., marking the first supply
agreement in Canada between a
provincial distributor and a licenced producer with a proposed
outdoor cultivation facility.
- Finalized an accessories supply agreement with the Ontario
Cannabis Store, Ontario's sole
legal online retailer and wholesaler for recreational cannabis.
- Repaid $2,300,000 in mortgage
debt for the Morton Avenue Good & Green facility.
"48North successfully achieved all of the milestones it targeted
in Q2. These included: sustained revenue growth; closing both the
Good & Green acquisition and the $10,000,000 private placement," said Alison Gordon, co-CEO of 48North.
"Our strong business performance throughout the quarter drove
positive EBITAO and a significant increase in revenue growth
quarter over quarter," Ms. Gordon continued. "Subsequent to the end
of the quarter, 48North completed the operational build-out and
licence application for the Company's 100-acre outdoor cannabis
farm in Brant County, Ont. In addition, the Company signed a supply
agreement for organic sun-grown cannabis with the SQDC — the first
agreement of its kind in Canada —
a significant milestone that demonstrates 48North's position as the
industry leader with respect to the expected development and
distribution of next-generation cannabis products, including
topicals, cosmetics, vape pens, edibles and beverages."
Selected Financial Information
All amounts are expressed in Canadian dollars
|
|
|
|
|
|
|
|
|
3-months ended
September 30, 2018
|
3-months ended
December 31, 2018
|
6-months ended
December 31, 2018
|
|
|
|
|
|
|
|
|
Revenue
|
1,271,544
|
2,386,905
|
3,658,449
|
|
|
|
|
EBITDAO*
|
606,570
|
11,583
|
618,153
|
|
|
|
|
Net and comprehensive
loss
|
(1,011,154)
|
(872,628)
|
(1,883,783)
|
|
|
|
|
Total
assets
|
26,339,495
|
46,270,209
|
46,270,209
|
|
|
|
|
Total
liabilities
|
1,176,925
|
6,311,912
|
6,311,912
|
|
|
|
|
Cash on
hand
|
9,815,083
|
12,042,072
|
12,042,072
|
|
|
|
|
*EBITDAO is a non-IFRS measure and defined as earnings before
interest, tax, depreciation and amortization, and stock-based
compensation expense, and is not a recognized measure for financial
statement presentation under IFRS. EBITDAO is not intended to be
considered as an alternative to net earnings, cash flow from
operations, or any other measure of performance prescribed by IFRS.
The Company's EBITDAO may also not be comparable to EBITDAO used by
other companies, which may be calculated differently. The Company
considers EBITDAO to be a meaningful measure to assess its
operating performance in addition to standardized IFRS measures. It
is included because the Company believes it can be useful in
measuring its ability to fund capital expenditures and expand its
business.
Second Quarter 2019 Results Conference Call
DATE:
Tuesday, February 26, 2019
TIME: 8:30 a.m. ET
DIAL IN NUMBER: 647-427-7450 | 1-888-231-8191
CONFERENCE ID: 2085977
About 48North
48North Cannabis Corp. (TSXV:
NRTH) is a vertically-integrated cannabis company focused on
the health and wellness market through cultivation and extraction,
as well as the creation of innovative, authentic brands for
next-generation cannabis products. 48North is developing
formulations and manufacturing capabilities for its own proprietary
products, as well positioning itself to contract manufacture
similar products for third parties. 48North operates two
indoor-licensed cannabis production sites
in Ontario with over 86,000 square feet of
production capacity. 48North cultivates unique genetics at its
wholly-owned subsidiaries, DelShen Therapeutics Corp. ("DelShen")
and 2599760 Ontario Corp. dba Good & Green ("Good &
Green"), both Licensed Producers under the Cannabis Act. In
addition, 48North expects to operate a 100-acre organic farm
providing 48North with organic, sun-grown cannabis providing a
significant first-mover advantage in the production of low-cost,
next-generation, extract-based cannabis products. 48North has a
growing portfolio of brands that include Latitude, a women's
cannabis platform (explorelatitude.com) and Mother & Clone, a
rapid-acting sublingual cannabis nanospray
(momandclone.com).
DISCLAIMER & READER ADVISORY
Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accept
responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or future performance. The use of any of the words "could",
"intend", "expect", "believe", "will", "projected", "estimated" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the parties' current belief or
assumptions as to the outcome and timing of such future events.
Actual future results may differ materially. Forward looking
statements in this news release include statements relating to the
business plan and future operations of the Company, including its
application with Health Canada for a cultivation license for its
100 acre outdoor grow property. Such statements are subject to
risks and uncertainties that may cause actual results, performance
or developments to differ materially from those contained in the
forward-looking statements, including the possibility that the
business plan described herein will not be completed, that 48North
may not derive the expected benefits from such business plans, or
that applicable regulatory approvals will be obtained to carry out
the activities contemplated herein. The business of the Company is
subject to a number of material risks and uncertainties. Please
refer to the Company's SEDAR filings for further details. Various
assumptions or factors are typically applied in drawing conclusions
or making the forecasts or projections set out in forward-looking
information. Those assumptions and factors are based on information
currently available to the parties. The material factors and
assumptions include the Company being able to obtain the necessary
corporate, regulatory and other third parties approvals, and
licensing and other risks associated with the Cannabis Act. The
forward-looking information contained in this release is made as of
the date hereof and the parties are not obligated to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward looking information. The foregoing statements
expressly qualify any forward-looking information contained
herein.
SOURCE 48North Cannabis Co.