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Aphria adds to planned portfolio of vapes & concentrates with PAX Labs agreement

Aphria adds to planned portfolio of vapes & concentrates with PAX Labs agreement

Aphria Inc. (“Aphria” or the “Company“) (TSX: APHA and NYSE: APHA) today announced an agreement with San Francisco-based PAX Labs, Inc. (“PAX“), a leader in the design and development of premium cannabis vaporization devices, that will enable Aphria to provide premium cannabis extracts in pods designed for use with PAX’s innovative Era device and platform. The Company plans to introduce PAX pods for both adult-use consumers and medical patients, pending anticipated changes to the Cannabis Act to permit the sale of cannabis extracts for vaporization.

Aphria Inc. (CNW Group/Aphria Inc.)

“As Aphria continues to drive the evolution of the industry, we are thrilled to partner with a technology leader like PAX to provide a new avenue for consumers to integrate cannabis into their lives,” said Irwin Simon, Interim CEO of Aphria. “We are excited to bring our premium cannabis extracts from Solei, RIFF and our flagship medical cannabis brand, Aphria, to the PAX Era device and platform.”

PAX has already sold more than 500,000 Era devices for oil concentrates in the United States and continues to see expansive growth.

“The expected legalization of vapes and concentrates will mark a significant turning point in the Canadian market, providing more choice and new experiences, while opening the door to a range of new consumers,” added Simon. “Our strategic alliance with PAX sets the stage for our broad portfolio of vapes and concentrate products to come.”

Aphria estimates Vapes & Concentrates will represent close to 30% of the entire Canadian adult-use market by 2021.

“This collaboration compliments Aphria’s growing roster of strategic innovation partners, including Manna Molecular Sciences and Rapid Dose Therapeutics, as we pursue new innovations that will change the way consumers interact with cannabis in the future,” said Simon.

We Have A Good Thing Growing

About Aphria Inc.
Aphria Inc. is a leading global cannabis company driven by an unrelenting commitment to our people, the planet, product quality and innovation. Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria Inc. has been setting the standard for the low-cost production of high-quality cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria Inc. is committed to bringing breakthrough innovation to the global cannabis market. The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria Inc. drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents.

For more information, visit: aphriainc.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to the future composition of the cannabis market. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability of Aphria Inc. to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks, including those set forth in our public filings on SEDAR and EDGAR.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Cision

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SOURCE Aphria Inc.

Published at Fri, 07 Jun 2019 13:39:28 +0000

Vapen MJ Ventures Brings CBD Extraction to Kentucky 8th Generation, Family Owned Farm

Vapen MJ Ventures Brings CBD Extraction to Kentucky 8th Generation, Family Owned Farm

Vapen MJ Ventures Corporation (CSE: VAPN) (“Vapen MJ”) a fully integrated agricultural technology, services and property management company in the regulated cannabis industry announced today that it is bringing its extraction expertise to a Kentucky partnership for CBD extraction.   First harvest and initial extraction production is anticipated in fall of 2019 and expected to generate approximately CAD$24 million in wholesale refined, high purity CBD oil in the first year of operation.

Vapen MJ and Emerald Point Hemp will form a new entity, Vapen-Kentucky LLC (“Vapen-Kentucky”).  Emerald Pointe Hemp is an eighth-generation family-owned, farming business, that has a proven record of growing hemp for many years.  Emerald Pointe Hemp has initially dedicated 100 acres of their 6,000-acre farm to the cultivation of hemp specifically dedicated to Vapen-Kentucky, for its extraction and wholesale distribution operations.  Vapen-Kentucky will process hemp for refined, high purity CBD oil, utilizing the industrial hemp grown by Emerald Pointe.  Vapen MJ and Emerald Pointe Hemp will share equally in the net profits generated from the CBD extraction and wholesale distribution business of Vapen-Kentucky.  All products produced through Vapen-Kentucky will bear the “Vapen” brand.

Thai Nguyen, chief executive officer of Vapen MJ commented that “Our multi-state expansion strategy includes partnering with cannabis license holders as well as hemp producers with our THC and CBD extraction expertise.  Through our relationship with Emerald Pointe Hemp, we will have direct control over raw materials for our Vapen CBD products and with that the unlimited capacity to expand our sales strategies for CBD domestically and internationally.”

Forward Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Vapen MJ’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.

Forward-looking statements may include, without limitation, statements related to future developments and the business and operations of Vapen MJ.

Although Vapen MJ has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; are engaged in activities currently considered illegal under U.S. Federal laws; change in laws; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. Because of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Vapen MJ disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Vapen MJ does not assume any liability for disclosure relating to any other company mentioned herein.

SOURCE Vapen MJ Ventures Corporation

For further information: Bob Brilon, President and CFO, T: 602-620-9725, Investors@VapenMJ.com

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Authored By

Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Wed, 05 Jun 2019 13:14:31 +0000

Relevium’s Biocannabix Executes LOI to Acquire 30% Interest in Weedsense, a Late Stage Applicant for Standard Processing and Medical Sales License

Relevium’s Biocannabix Executes LOI to Acquire 30% Interest in Weedsense, a Late Stage Applicant for Standard Processing and Medical Sales License

Relevium Technologies Inc. (TSX.V: “RLV”, OTCQB: “RLLVF” and Frankfurt: “6BX”) (the “Company” or “Relevium”), is pleased to announce its wholly owned subsidiary Biocannabix Health Corporation (“Biocannabix”) has executed an LOI to acquire 30% of Weedsense Inc., a late stage applicant for standard processing and medical sales license.

WEEDSENSE STRATEGIC FIT FOR BIOCANNABIX ENDO-MEDICINAL BUSINESS

Weedsense Inc. (“Weedsense”) is building a wholesale and distribution business in Montreal, Québec. The Company’s business model includes wholesale and bulk products from licensed producers or processors and distributing directly to medical patients through a network of pharmacists or clinics. Weedsense will also service the recreational market by acting as a distributor to provincially-sanctioned wholesalers such as the Ontario Cannabis Store (OCS) or Société Québécoise du Cannabis (SQDC).

Weedsense can also provide secured third-party logistics (3PL) partner for other market participants who seek direct access to the Quebec market. Weedsense has applied for Standard Processing and Medical Sales licenses through Health Canada and is building a euGMP facility in Montreal. The late stage applicant “Weedsense Inc.” expects to be fully licensed no later than Q4 2019 and obtain euGMP certification shortly thereafter.

Biocannabix Health Corporation will entrust Weedsense with the storage, sales and distribution of its endo-medical nutraceuticals and medical food products for the Canadian marketplace including pharmacies and hospitals. Biocannabix mission is to become a leader in providing safe, organically sourced endo-medicinal products for pediatric care into the Canadian market.

Aurelio Useche, CEO of  Relevium stated: “Our investment into Weedsense provides Biocannabix with the capability to import, export, warehouse, packaging and sell to pharmacies and hospitals in a secure and compliant manner. This is another milestone in our vertically integrated model for the Pediatrics market”

Dave Shepard, CEO and Co-Founder of Weedsense Inc. stated: “The idea behind Weedsense from the beginning has been to offer patients the best possible service: amazing products at a fair price, the best customer service possible and timely delivery. I have been successful building out this model already in the beauty space with beautysense.ca and it was clear that a patient centric wholesale/distribution platform was lacking in the cannabis market.”

Sasha Asgary, COO and Co-Founder of Weedsense Inc. stated: “We have had the luxury of building Weedsense after having observed market dynamics for the last two years. We are employing best in class cannabis consultants and engineering firms that have all won awards in their respective categories at industry events and guided us exceptionally well through our licensing process. There is no doubt in our minds that we are building a platform that will win the hearts of patients locally and nationally.”

TRANSACTION STRUCTURE

Biocannabix has executed an LOI to invest CAD$1.5 million into Weedsense Inc. to obtain an initial 30% interest in the company. In addition to its initial investment, Biocannabix has secured an additional option to acquire 100% of the shares after the grant of the licenses by Health Canada and full construction of the facility for an additional CAD$3.5 million payable in shares of Biocannabix at a valuation equals to that of the eventual series “A” financing of the wholly-owned subsidiary.

The transaction is conditional to the grant of the said licenses by Health Canada, financing and is also subject to the approval to the TSXV Stock Exchange.

About Relevium Technologies

Relevium is a publicly-traded company that operates in the health and wellness industry, including legal cannabis, with a primary focus on online distribution. The principal business of the Company is the identification, evaluation, acquisition and operations of brands and businesses in the health and wellness markets and medical cannabis. The Company pursues its business strategy through an acquisition and partnership model in a holistic approach to encompass a wide range of health and wellness consumer products. Relevium operates through two wholly owned subsidiaries:

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Authored By

Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Wed, 05 Jun 2019 14:04:18 +0000

Next Green Wave Provides Corporate Update

Next Green Wave Provides Corporate Update

Next Green Wave Holdings Inc. (CSE: NGW) (OTCQB: NXGWF) The CEO and Executive Chairman of NGW, Leigh Hughes is pleased to provide an update on the progress of The Company’s operations.

As a young public company, we continue to demonstrate the energy, drive and passion of a “start-up” that is influenced by our strong values and long-term vision. With the groundwork now in place, we anticipate 2019 to be a significant year as we begin to generate revenue, launch products, and continue to serve a larger role in the California premium cannabis space -both as an authorized producer and distributor of major brands and labels.

We are part of a fast-growing and highly competitive industry and need to stay ahead of the curve to provide customers with a superior experience and product. As such, we are continually evaluating our priorities and best practices to seize opportunities and overcome the challenges that arise in this new marketspace.

How do we build a resilient brand and product portfolio? How do we tune out the noise and prepare for the long term? We believe that having the systems in place to adopt and innovate quickly differentiate us from the rest and enable us to serve clients, inspire employees and deliver value to shareholders.

“Next Green Wave’s mission is to unlock the full potential of the cannabis plant, in ways that cater to all industries and individuals around the world.”

Over the next three years, Next Green Wave will strive to become a top tier cannabis brand in California through our infrastructure, acquisitions and the targets we have set in the premium recreational segment. In March we accelerated our value proposition through the acquisition of SD Cannabis (“SDC”) and will now direct our efforts to build out a world-class nursery in collaboration with Intrexon.

In this update, we share the highlights of our performance, our notable achievements since going public in October of 2018 and our aspirations for the year to come.

In closing, the Board remains diligent and is also confident it has the right business model and the right objectives for successful execution, drive growth and to create stakeholder value. With that, we have the opportunity to shape the future of our emerging industry and to unlock the full potential of the cannabis plant.

Commencement of Cannabis Production at Facility A

In late April, we began our breeding program to build up our nursery stock to populate our 14 grow rooms over the next couple months. When we reach our optimal production schedule, the garden crew will harvest two grow rooms every 10-14 days ensuring a constant supply to our vendors. The full cycle from seedling to sale is anticipated to take about four months. Revenue from the cultivation process is expected to take place in Q3.

In early April 2019, our HR department hosted a 2-day offsite on-boarding that focused on company alignment and culture building with the entire Facility A team and officials from the City of Coalinga. Their participation energized and encouraged the team to be not only valuable employees, but valuable members of the community at large.

In early May 2019, we implemented our automated Track and Trace Compliance System (“Trellis”). This involved the Trellis Executive Team to be on-site and oversee a successful on-boarding and implementation with our COO, VP Finance, Compliance Officer and Gardener’s.

We are on track for the full retrofit and activation of our 3,240 square foot Facility C in late Q2, which will be used for our non-volatile extraction activities. Facility C will also be used for research and development and we are excited about the prospect of working with other partners to bring new cultivars and product lines to the cannabis space through this facility. We have received all conditional use permits related to Facility C and submitted our application license for both volatile and non-volatile extraction activities with the State of California (California Department of Public Health) in Early May.

Our Vision to be Number 1 in Cannabis Consumer Product Goods in California

Next Green Wave is now focused on integrating SDC’s 8 brands, 45 THC and CBD products, extraction and manufacturing team while calibrating its recently completed 35,000 sq. ft Facility A. We have now integrated SDC’s extraction and manufacturing expertise into our facilities and are currently fitting out Facility C which will house the company’s extraction business.

In the coming months, our Brand Partners product lines will be introduced into the California and online direct-to-consumer market in the United States. With a combined social media reach of over 25 million across the globe, these Brand Partners include;

Carey Hart
View on Instagram ( 969k Followers )

Loki the Wolf Dog
View on Instagram ( 2 Million Followers )

King Louie
View on Instagram ( 383k Followers )

Sketchy Tank
View on Instagram ( 235k Followers )

Junkyard LA
View on Instagram ( 85.7k Followers )

Toy Machine Skateboard Co
View on Instagram ( 628k Followers )

SD Cannabis
View on Brand House Instagram

View Product on Instagram

NoJumper OSS
View NoJumper on Instagram (1.3 Million Followers )

View Adam 22 on Instagram ( 1.5 Million Followers )

Thorn St. Beer
View on Instagram ( 28.4k Followers )

In March, we successfully launched the Loki Naturals product range through its online store www.lokinaturals.com Our initial test run of Love Biscuits and Tinctures were sold by advertising across Loki’s social media platforms. The engagement and sales response was strong, and we are optimistic on the consumer acceptance of all 8 brand partners and 45 product lines all hitting the shelves and online platforms over the next few months.

Building a World-Class Nursery with Intrexon

The implementation of Intrexon’s next generation (non-GMO) tissue culture platform, Botticelli™ began in Q1 and as part of the first phase of the project, the companies will calibrate this technology specifically to Next Green Wave’s cannabis cultivars toward rapid and sustainable cannabis plantlet production.

The Botticelli™ platform is an advanced tissue culture technology designed to enable efficient propagation of plants while maintaining genetic purity and product performance. When applied to cannabis, Botticelli™ offers potential for a sustainable, scalable, and more economical solution than conventional clones.

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Intrexon

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The objective of this optimization phase will be to demonstrate that Botticelli™ will allow for cost effective cannabis plantlet production compared to the traditional cloning applications in today’s market.

This will offer the cannabis market several advantages:

• Rapid multiplication of proprietary lines in smaller areas;

•Reduction or potential elimination of mother rooms;

• Substantially decreased cutting load on the mother plants ensuring genetic purity and product performance;

• Reduced phytosanitary risk and superior product performance;

• A more integrated production system and shorter time to vegetation room; ex., reduction or elimination for vegetative acclimatization step; and

• Capital efficiencies.

In 2019, Next Green Wave and Intrexon will work together to achieve the following key project deliverables:

  • Quarter 1: Utilize Next Green Wave’s hemp CBD strains as a proxy to optimize standard operating procedure at Intrexon’s Davis, California facility.
  • Quarter 2: Intrexon to complete tissue culture lab build out at Next Green Wave’s 3,240 sq. ft Facility “Site C”.
  • Quarter 3: Intrexon becomes operational at Next Green Wave’s 3,240 sq. ft Facility “Site C”. Tissue culture lab ready and operational.
  • Quarter 4: Optimization of Botticelli™ SOP to 10 Next Green Wave THC cultivars ready for scale-up production and commercialization in 2020.

International Expansion Through Brand Licensing Opportunities

As the global cannabis landscape continues expand in 2019, Next Green Wave will take advantage of specific international markets that will allow our brands and products to be licensed through other respectable international partners. Our investment and strategic partnership with Organic Medical Growth (“OMG”) which will see our distribution channel expand by over 7,000 pharmacies in Colombia through a brand licensing agreement with OMG.

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OMG
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To ensure that OMG goes to market with a premium product, we will be providing expertise and services to ensure that OMG’s nursery, cultivation and extraction techniques are of the highest standard. These services have begun, and we expect that in 2019, a range of our brands will be selling into Colombia and on a path to generating revenues. In May, we recently did our first site visit to OMG’s facilities.

OMG is expecting to go public in Canada in late 2019 with Next Green Wave having a 10% equity ownership post its first initial public offering financing round and the option to purchase up to another 5% of the company post its first initial public offering financing round.

Financed to Accelerate Rapid Growth

This week we announced a close on a $6M convertible note offering which provides two $3M tranches. The 2nd tranche will be delivered at the sole discretion of Next Green Wave without any obligation to give the financial flexibility to execute our growth strategy while continuing to maintain and protect shareholder value. Proceeds of the Offering will be used for the acceleration and rollout of Next Green Waves’ brands and products throughout California in 2019.

Shareholder Value through Revenue

Now that we have become a licensed cannabis producer in California and commenced the integration of the SD Cannabis acquisition (“SDC”), we anticipate strong output, and more importantly, synergies from our Cultivation Facility (“Site A”) and our Extraction Facility (“Site C”).

The monthly output is expected to be 650 to 750 lb’s per month of premium flower from Facility A and 110 to 120 kg’s per month of extracted oil from Facility C.

Our SDC brand partnerships and products are expected to sell approximately 30,000 units per month with full market activation in 2019.

Next Green Wave’s Rejuvenated Brand & New Website Launch

We recently announced the launch of our rejuvenated company brand and visual identity. With a focus on innovative and open lines of communication with our stakeholders, we have also launched an entirely new website that provides a far more in-depth look at our brand portfolio, facilities, partners and our overall business. www.nextgreenwave.com

With a desire to elevate life’s moments for our industry, stakeholders and consumers, we are looking beyond just the product to create a more personal lifestyle connection with our communities. You can also catch the action in real time through our Twitter, Facebook and Instagram accounts@nextgreenwave.

The Opportunity Ahead in 2019

Next Green Wave continues to remain focused to ensure that we meet our key milestones and expectations of all stakeholders in 2019. In line with our strategic plan, in 2019 we will also be focused on delivering in the following key areas;

• Activating our nursery business to develop world-class hybrid cannabis strains for direct retail and wholesale;

• Achieving full operation capabilities of our flagship 35,000 sq. ft Facility “Site A”;

• Activation of our extraction facility in late Q2 to begin producing oils, tinctures, and extracts for custom vaporizer products;

• Securing our distribution network into California through our SD Cannabis brand acquisition and the roll out of 8 more brands and 43 products with influential branding partners;

• Obtaining access into international markets through investments in licensed cultivators and distributors such as OMG;

• Establishing research and innovation amenities and procedures for continued product and branding development.

The Company also wishes to announce that David Wilson has resigned as a Director of the Company. The Company thanks Mr. Wilson for his dedication and commitment and wishes him well in his future endeavours.

About Next Green Wave

Next Green Wave is a vertically integrated seed-to-consumer premium medicinal and recreational cannabis company operating in California. The Company’s first state-of-the-art indoor facility (35,000 ft.2) is now entering production with future plans to expand the 15 acres of cannabis zoned land it is situated on. NGW has acquired a seed library of over 120 strains which include several award-winning genetics and cultivars. Recent acquisition of SDC Ventures will complement NGW’s branded products and accelerate the company to revenue through SDC’ existing partnerships and labels. The investment in OMG will provide NGW access to distribution through the licensing of our brands through Colombia. To find out more visit us at www.nextgreenwave.com or follow us on Twitter at @nextgreenwave, on Instagram, and LinkedIn.

On behalf of the board,

Leigh Hughes,
CEO and Executive Chairman
Next Green Wave Holdings Inc.

Next Green Wave Forward Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward-looking statements.” Forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. Such risks and uncertainties include, among others, the risk factors included in the preliminary prospectus, including without limitation dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing state, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits to complete construction of its proposed facilities in a timely manner; engaging in activities which currently are illegal under US federal law and the uncertainty of existing protection from U.S. federal or other prosecution; regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, particularly in California, due to inconsistent public opinion, perception of the medical-use and adult-use marijuana industry, bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; NGW’s limited operating history and lack of historical profits; reliance on management; NGW’s requirements for additional financing, and the effect of capital market conditions and other factors on capital availability, including closing of Tranche 1 and Tranche 2 of the Notes; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers. Readers are encouraged to the review the section titled “Risk Factors” in NGW’s prospectus. These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although NGW has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. NGW no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.

For more information regarding Next Green Wave, contact:
Caroline Klukowski
VP Corp. Development
Tel: +1 (778) 589-2848
IR@nextgreenwave.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/45194

copyright (c) newsfile corp. 2019

Published at Fri, 31 May 2019 14:07:15 +0000

CB2 Insights Posts Strong Growth in Clinical Revenue and Drives Operating Efficiencies in Q1 2019

CB2 Insights Posts Strong Growth in Clinical Revenue and Drives Operating Efficiencies in Q1 2019

CB2 Insights (CSE:CBII; OTCQB:CBIIF) (“CB2” or the “Company”), a leading technology company focused on mainstreaming medical cannabis to the healthcare industry through Real World Evidence (“RWE”), today reported its results for the first quarter of 2019. Additional information concerning the Company, including its unaudited financial statements and related management’s discussion and analysis (“MD&A”) for the quarter ended March 31, 2019, can be found at www.sedar.com and on the Company’s website. All amounts are expressed in Canadian dollars unless otherwise noted.

Q12019 Financial Highlights

  • Revenue for the quarter was $2.9 million, a 16.4% increase over the previous quarter and based solely on organic growth within the Company’s Canna Care Docs brand;
  • Revenue contribution from its newly acquired MedEval and Relaxed Clarity clinic groups would have been an estimated $500 thousand for the quarter, which would have boosted revenue to $3.4 million for the quarter and increased the Company’s revenue growth rate to over 37% quarter-over-quarter;
  • Gross profit of $2.2 million for the quarter, or gross margin of 77% represents an increase from 70% from the prior quarter;
  • Operating expenses for the quarter were reduced by more than $785 thousand from the prior quarter as a result of management’s operational efficiency analysis;
  • At quarter end the Company had cash of $1.6 million on hand compared to $433 thousand from the prior quarter; and
  • Adjusted EBITDA1 loss of $713 thousand in Q1 2019 versus Adjusted EBITDA loss of $1.81 million in Q4 2018*.

*Note: Q1 2019 Adjusted EBITDA1 from US clinical operations (not inclusive of any subsequent-to-quarter-end acquisitions) resulted in a gain of $578 thousand. CB2 currently uses this surplus in cash flow to fuel its Data and Analytics business, which includes but is not limited to software development, product development, analytical and commercialization teams.

“CB2 saw a strong organic growth in our top line paired with a substantial reduction in our operating expenses in the quarter. This growth did not include contributions from our new, profitable clinical acquisitions of MedEval and Relaxed Clarity,” said Prad Sekar, CEO, CB2 Insights. “We remain committed to growing our clinical business, reducing our burn rate and working towards commercializing our RWE / data asset. We have made significant progress in each of these areas over the past quarter and are confident that our valuation should begin to reflect this. Over the past several months, we have had meaningful conversations with many large-scale traditional Life Sciences stakeholders and are working towards commercialization of our data assets to help usher in a new level of understanding regarding cannabinoid therapy across the traditional healthcare sector. As we look to continue acquiring additional clinical groups in the coming quarters, we are excited to have received validation by major industry players that the path that we are on holds significant prospective value to those both inside and even more so, outside the medical cannabis industry.”

Q1 2019 Operational and Strategic Highlights

Operational and Strategic Highlights Subsequent to Quarter End

CB2 Insights’ Divisional Highlights

CB2 Insights operates 3 primary divisions in the generation of health outcome data. These divisions are:

Clinical Operations: CB2 currently operates the largest network of physician-staffed medical centers in the US specializing in qualifying and supporting patients who are treating their indications with medical cannabis.

  • Added 4 new clinic locations within the quarter under Canna Care Docs brand;
  • Subsequent to quarter-end, successfully acquired Colorado-based Relaxed Clarity; and
  • Subsequent to year-end, successfully acquired Colorado and Arizona-based MedEval Clinics LLC.

Technology: CB2 has developed and deployed its proprietary cannabis-specific Electronic Health Record (EHR) technology platform to standardize the patient and clinical workflows within its clinics ensuring valid and structured anonymized and aggregate data collection protocols to support Real-World Data collection.

  • Successful integration of proprietary Sail EHR platform into Relaxed Clarity and MedEval Clinics LLC; and
  • Began integration with large EMR platform, Premier Health Group to provide access of CDS tool to nearly 5,000 physicians.

Data Insights: Applies analytical, machine learning and artificial intelligence (AI) technologies to the data the Company generates to derive insights that support stakeholders within the Life Sciences industry including drug manufacturers, patients, doctors/HCPs, regulators and payors.

  • Artificial Intelligence expert, Dr. Randy Goebel joins CB2 Insights as Sr. Advisor to Data Insights Division; and
  • Company engaged in successful exploratory sessions with international regulatory bodies, pharmaceutical companies and insurance firms to discuss Real World Evidence support for issues related to cannabis-based drug development, regulatory frameworks and drug spend.
    Quarter ended March 31, 2019   Quarter ended December 31, 2018
  Revenue   $2,849,811   $2,449,020
  Cost of sales   $655,688   $747,496
  Gross Profit   $2,194,123   $1,701,524
  Gross Margin   76.9%   69.5%
  Adjusted EBITDA1   $(712,582)   $(1,811,463)
  Net Income (Loss)   $(2,161,546)   $(2,539,776)
  Basic and diluted net loss per share   $(0.031)   $(0.0452)

CB2 is also announcing that it has completed a rights offering which was previously announced on February 27, 2019. Under the terms of the rights offering, CB2 issued a total of 7,281 common shares at a price of $0.45 per share for aggregate gross proceeds of $3,276.45.

The rights were issued to holders of record on February 15, 2019, prior to the completion of the Company’s reverse take over transaction with MVC Technologies Inc. No stand-by commitment or additional subscription privilege had been agreed and no commission was payable in connection with the rights offering. All unexercised rights are now null and void.

Following the completion of the rights offering, CB2 will have a total of 78,778,036 common shares issued and outstanding.

The net proceeds of the offering will be used for general working capital.

Earnings Conference Call

CB2 Insights’ management team will hold a conference call to discuss our 2019 Q1 Earnings on May 31, 2019 at 9:00am EDT (details below).

  Date:   Friday, May 31, 2019
  Time:   9:00 a.m. (EDT)
  US/Canada Toll Free Dial In:   1-800-319-4610
  Toronto Local Dial In:   1-416-915-3239
  International Dial In:   1-604-638-5340
  Call Name:   CB2 Insights Earnings Call

An archived replay of the conference call will be available on the Company’s website within 24 hours following the conclusion of the call.

Non-GAAP Financial Measures

This Press Release contains references to Adjusted EBITDA and Gross Margin. These financial measures are not measures that have any standardized meaning prescribed by IFRS and are therefore referred to as non-GAAP measures. The non-GAAP measures used by the corporation may not be comparable to similar measures used by other companies. Adjusted EBITDA is defined as “income (loss) before interest expenses, taxes, expenses related to listing on the Canadian Securities Exchange, depreciation, foreign exchange and financial expenses.

The Company uses these non-GAAP measures because they provide additional information on the performance of its commercial operations. Such tools are frequently used in the business world to analyze and compare the performance of businesses; however, the Company’s definition of these metrics may differ from those of other businesses. CB2 Insights will, at times, use certain non-GAAP financial measures to provide readers with additional information in order to assist investors in understanding our financial and operating performance. CB2 Insights believes that these non-GAAP measures provide readers with useful information about the Company’s operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

Adjusted EBITDA excludes the effect of share-based compensation expenses and related payroll taxes as well as removes substantial one-time costs for unusual business activities. Within the 2018 reporting period, one-time costs associated with fees pertaining to the Company’s public listing are excluded from this figure. Additional discussion on this can be found in CB2 Insights’ Management Discussion and Analysis filed on SEDAR.

Such non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, the corresponding measures calculated in accordance with IFRS. See the Company’s audited Financial Statements for a reconciliation of the non-GAAP measures.

About CB2 Insights

CB2 Insights has a mission to mainstream medical cannabis into traditional healthcare. We do so by gathering data and creating objective real-world evidence through our proprietary software and service brands. Using clinical management and data collection software at the point-of-care, CB2 Insights and its group of sub-brands has become a leading force behind bringing traditional healthcare protocols to the rapidly evolving global cannabis industry.

For more information please visit www.cb2insights.com.

Primary Contact:
Dan Thompson
Chief Marketing Officer
1.416.670.9316
dan.thompson@cb2insights.com

For Investor Inquiries:
Sean Peasgood
+1.647.362.8286
investors@cb2insights.com

For Media Inquiries:
KCSA Strategic Communications
cb2@kcsa.com

Forward-Looking Statements

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in CB2’s filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements.

Forward-looking statements may include, without limitation, statements regarding the opportunity to provide services and software to the U.S. cannabis industry.

Although CB2 has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are subject to inconsistent legislation and regulation; change in laws; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and recreational-use marijuana industry and; regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. CB2 disclaims any intention or obligation to update or revise such information, except as required by applicable law, and CB2 does not assume any liability for disclosure relating to any other company mentioned herein. 

No securities regulator or exchange has reviewed, approved, disapproved, or accepts responsibility for the content of this news release.

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Published at Thu, 30 May 2019 20:22:01 +0000

Chemesis International Inc. Reports Fiscal Q3 2019 Financial Statements

Chemesis International Inc. Reports Fiscal Q3 2019 Financial Statements

Chemesis International Inc. (CSE: CSI) (OTC: CADMF), announces unaudited fiscal Q3 Financial Statements for the three months ending March 31, 2019. In this quarter;

  • the Company reported Revenue of $3,762,139, a 33% increase over the previous quarter, with Gross Profit of $1,113,903.
  • the Company closed the acquisition of La Finca Interacviva-Arachna Inc. SAS, an integrated cannabis company operating in Colombia with access to over 1,060 acres of outdoor cultivation.
  • the Company entered into a definitive agreement to manufacture a Proprietary Patent Pending THC Flake.
  • the Company announced an exclusive partnership with First Medical Cannabis bringing immediate access to 1,000 acres of hemp cultivation in Puerto Rico. Additionally, the Company has the option to expand to an additional 5,000 acres.

SUBSEQUENT EVENTS

  • the Company announced the closing of CDN $1,975,000 in equity financings.
  • the Company completed a definitive agreement for Acquisition of an extraction & manufacturing facility in Cathedral City. The acquisition expanded the Company’s processing ability to over 500,000 kg of cannabis annually.
  • the Company announced multi-state expansion into the Central United States, with teams concentrating on establishing operations in Michigan, Wisconsin, Missouri, and Illinois.
  • the Company announced it has received approval for three new cultivation licenses in Colombia, with the ability to expand to over 100 acres. Additionally, through its non-profit organization, Chemesis believes it will extend its sowing prospects to add an additional 10,000 acres within the next three years.
  • the Company announced it agreed with the holders of a $5.5 million promissory notes issued in connection with the Company’s acquisition of La Finca Interacviva-Arachna Med SAS to settle the full amount by issuing 4,104,476 common shares subject to 24 month leak out and escrow agreement.

Edgar Montero, CEO of Chemesis stated, “the Company’s operations continue to see increases in revenue quarter over quarter and we anticipate our operations will continue to grow as we see significant demand for the products we manufacture and package. The company’s revenues, accounts receivables, and inventory is as strong as ever. Chemesis is also putting forth further resources to expand into the Eastern United States to continue to expand the Company’s multi-state operations. The team has created a foundation that we believe will create significant opportunities in 2019.”

Chemesis international still has access to $32,625,000 in drawdown equity facilities between New York based Alumina Partners Inc and Global Emerging Markets at the company’s discretion.

The unaudited condensed consolidated interim financial Statements and MD&A for the three months ended March 31, 2019 will be filed on SEDAR and available at www.sedar.com.

On Behalf of The Board of Directors
Edgar Montero
CEO and Director

About Chemesis International Inc.

Chemesis International Inc. is a vertically integrated U.S. Multi-State operator with International operations in Puerto Rico, and Colombia.

The Company focuses on prudent capital allocation to ensure it maintains a first mover advantage as it enters new markets and is committed to differentiate itself by deploying resources in markets with major opportunities. The Company operates a portfolio of brands which cater to a wide community of cannabis consumers, with focus on quality and consistency.

Chemesis has facilities in both Puerto Rico and California, and is in the process of constructing a GMP certified facility in Colombia. Chemesis’ Puerto Rico operations are licensed to operate 100,000 ft2 of cultivation, and 35,000 ft2 of manufacturing floor space. The Company is positioned to win additional licenses in highly competitive merit-based US states, and will expand its footprint to ensure it maintains a first mover advantage.

Investor Relations:
ir@chemesis.com
1 (604) 398-3378

Social Media:

Chemesis.facebook
Chemesis.twitter
Chemesis.instagram
DesertZen.instagram
CaliforniaSap.instagram
Jay&SB.instagram

Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable securities laws relating to statements regarding the Company’s business, products and future of the Company’s business, its product offerings and plans for sales and marketing, including finalizing an acquisition in Colombia. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company’s products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.

The CSE has not reviewed, approved or disapproved the content of this press release

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Published at Fri, 31 May 2019 00:37:07 +0000

Vapen Is Well Positioned To Capitalize On The Arizona Medical Market

Vapen Is Well Positioned To Capitalize On The Arizona Medical Market

Earlier this month, we highlighted VapenMJ (VAPN.CN) ahead of its go-public transaction and we hope you have been watching this emerging opportunity.

Following the completion of a successful go-public transaction, Vapen has been trending higher and this is an opportunity to be watching. During the last year, we have seen a significant increase in the amount of interest in United States focused cannabis businesses and this is an area that Vapen has been laser focused on.

Initially, Vapen has been capitalizing on the medical cannabis market in Arizona and has been targeting new markets as part of its expansion. One of the reasons we are excited about this cannabis company is due to the focus on the cannabis concentrate market and we find this to be significant.

Vapen is a leading medical cannabis concentrate brand in Arizona and has distribution of the 100+ dispensaries in the state. Last month, Select, a leading cannabis concentrate brand, was acquired for approx. $1 billion (CAD) and believe that this bodes well for a company like Vapen. Over the next year, we expect the cannabis concentrate market to record massive growth and this market is just getting started. According to BDS Analytics, the cannabis concentrate market is expected to be generating approx. $8 billion in retail sales by 2022 and this represents a massive opportunity for companies like Vapen.

We have been bullish on the cannabis concentrate market and believe this is an area where investors need to be focused on. According to BDS Analytics, cannabis concentrates represent approx. 26.6% of the entire United States market and has been gaining market share at a rate that is faster than any other cannabis product type. Vapen is well positioned to capitalize on the increasing demand for cannabis concentrates and we will be monitoring how the team executes from here.

Focused on Expanding into California and Nevada

Arizona is the third largest medical cannabis market in the United States and we expect the recreational cannabis market to open after the 2020 election. We are bullish on the opportunity in Arizona and are favorable on Vapen’s ability to execute and gain significant market share in this market. If recreational cannabis legislation is approved in Arizona, this will prove to be a major catalyst for the cannabis concentrate brand and would benefit companies like Vapen.

One of the reasons we are excited about Vapen is due to its plans to expand into markets that already has a recreational cannabis market and we are favorable on the growth prospects associated with this.  When looking at the markets that the company is targeting for an expansion, we are most excited about the opportunity in California and Nevada. In these markets, the demand for cannabis concentrates has been significant and we are bullish on this opportunity for Vapen.

Over the next year, we expect the entrance into new markets to be the most significant value driver for Vapen. The opportunity in Arizona is very important and we expect a change in regulations to be a major catalyst for the business. We believe that Vapen is focused on selling the right products in the right markets and are bullish on the growth prospects going forward.

An Emerging Growth Opportunity

One of the reasons we are confident in Vapen’s ability to expand is due to the management team that is place. We believe that the company is led by an executive team that has a proven track record of success and this is an important aspect of the business. We are favorable on the management team’s ability to create value for shareholders as well as the cannabis markets that it is focused on.

Vapen has several major potential catalysts for growth and is led by a management team that is laser focused on execution. The company offers a premium product line and has done an incredible job when it comes to executing on the Arizona medical cannabis market. Going forward, we expect to see Vapen enter new markets and expect revenue numbers to ramp higher as the team continues to execute.

Although the recent rally has been significant, the valuation is attractive when compared to its peers and we believe that this is an opportunity to be watching. Vapen is in the middle of a major growth cycle and we are favorable on the risk-reward profile.

The cannabis concentrate market represents a multi-billion-dollar market and we are favorable on the opportunity that Vapen has to capitalize on it. To learn more about the cannabis concentrate company, please email support@technical420.com.

Pursuant to an agreement between StoneBridge Partners LLC and Vapen MJ Ventures we have been hired for a period of 180 days beginning May 13, 2019 and ending November 13, 2019 to publicly disseminate information about (VAPN) including on the Website and other media including Facebook and Twitter. We are being paid $6,500 per month (VAPN) for or were paid “ZERO” shares of unrestricted or restricted common shares. We own zero (0) shares of (VAPN), which we purchased in the open market. We plan to sell the “ZERO” shares of (VAPN) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (VAPN) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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Authored By

Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Wed, 29 May 2019 11:07:52 +0000

WeedMD to Convert Aylmer Facility to Cannabis Extraction and Processing Hub

WeedMD to Convert Aylmer Facility to Cannabis Extraction and Processing Hub

WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to announce that it is converting its fully-licensed 26,000 sq. ft. Aylmer, Ontario facility to a large-scale cannabis extraction and processing operation.

“WeedMD is optimizing its two licensed facilities to allow each to focus on a core vertical and to streamline our operations. We are transitioning the Aylmer site to produce a wide range of extracts and concentrates,” said Keith Merker, CEO of WeedMD. “All cultivation has been consolidated to our greenhouse and outdoor Strathroy facility, which is delivering consistently improving yields at increasingly competitive costs.”

About the Aylmer Extraction Facility

WeedMD is retrofitting its Aylmer operation into a purpose-built cannabis oil extraction facility that will be operational by summer 2019. Additional details:

  • WeedMD is building on its experience in extract production, having processed oils onsite at Aylmer since June 2017
  • The site is fully licensed for cannabis oil production and sale
  • The Company will have four extraction lines in operation with the ability to process over 200,000 kgs of biomass annually
  • WeedMD will utilize various extraction methods in order to meet the demands of the market
  • The Company will provide formulation capabilities for wholesale and white label manufacturing
  • The facility is being built to GxP* standards to support compliance for both domestic and international markets
  • The existing fully-licensed 26,000 sq. ft. facility is located on an expandable four-acre site wholly-owned by WeedMD
  • WeedMD will supply a large quantity of input material for cannabis extraction from the greenhouse and outdoor production from its Strathroy site

*GxP encompasses a broad range of compliance-related activities such as Good Laboratory Practices, Good Clinical Practices and Good Manufacturing Practices.

As recently announced, WeedMD’s Strathroy cultivation facility is expected to yield more than 150,000 kgs of dried flower per year in 2020.  Outdoor grow video here.

For more information, access WeedMD’s investor presentation here and recently updated corporate video here.

About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of cannabis products for both the medical and adult-use markets. The Company owns and operates two facilities: a 26,000 sq. ft. indoor facility in Aylmer, Ontario and a 158-acre state-of-the-art greenhouse and outdoor facility located in Strathroy, Ontario. The Company currently has 136,000 square feet of licensed production space across its facilities and is expected to have a total footprint of more than 550,000 square feet of indoor and greenhouse production in addition to more than 25 acres of outdoor cultivation space online in the first half of 2019. WeedMD has a multi-channeled distribution strategy that includes selling directly to medical patients, strategic relationships across the seniors’ market and supply agreements with Shoppers Drug Mart as well as six provincial distribution agencies.

Follow WeedMD On:

Facebook: https://www.facebook.com/weedmd/
LinkedIn: https://www.linkedin.com/company/weedmd/?originalSubdomain=fr
Twitter: https://twitter.com/WeedMD
Instagram: https://www.instagram.com/weedmd/

For further information, please contact:

WeedMD Inc.

Keith Merker, Chief Executive Officer
Tel: 519-765-2440 Ext. 201
Email: investor@weedmd.com

To learn more, visit us at www.weedmd.com

For Media Inquiries:

Marianella delaBarrera
VP, Communications & Corporate Affairs
Tel: 416-897-6644
Email: marianella@weedmd.com

Cautionary Statement on Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon WeedMD’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of WeedMD to implement its business strategies; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD’s Annual Information Form dated December 13, 2017 (the “AIF”) and other disclosure documents of WeedMD filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the AIF and other disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.

______________________________________________________________________________________________
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

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Published at Wed, 29 May 2019 11:18:16 +0000

Aurora Cannabis Exercises License Option with EnWave for South America

Aurora Cannabis Exercises License Option with EnWave for South America

EnWave Corporation (TSX-V:ENW | FSE:E4U) reports today that, following its April 26, 2019 joint news release with Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB), a global leader in the cannabis industry, that Aurora has exercised its option and that the companies signed an exclusive, royalty-bearing commercial license agreement with sub-licensing rights for the use by Aurora of EnWave’s proprietary Radiant Energy Vacuum dehydration technology for the drying of cannabis in South America (excluding Peru). Aurora will hold the exclusive master license for the drying of cannabis using REV™ in the South American license territory and will work with EnWave to pursue additional sub-licensing opportunities. Aurora will receive an undisclosed share of royalties derived from any cannabis product dried with REV™ technology by sub-licensees in the South American license territory. This is the third such agreement signed by Aurora and EnWave.

Equipment Purchase Agreement Signed

Aurora has also signed an equipment purchase agreement for a large-scale 60kW commercial REV™ machine for its operations in South America. The REV™ dehydration machines purchased will be used to increase throughput of THC and CBD extraction for the manufacture of derivative cannabis products.

On April 26, 2019, EnWave and Aurora announced that the companies had entered into a royalty-bearing commercial license agreement with sub-licensing rights, providing Aurora with the exclusive rights to EnWave’s patented REV™ drying technology for the production of cannabis materials in the European Union, excluding Portugal (the “European License”). Aurora announced its intention to purchase an additional 120kW REV™ machine for its European operations. Additionally, Aurora secured a non-exclusive sub-license to use REV™ technology in Canada, signed an intellectual property agreement with the Company and made a $10 million strategic investment into EnWave.

Aurora’s exercise of its South American license option reflects Aurora’s global footprint and its intention to pursue widespread adoption of the REV™ technology throughout its global derivative manufacturing operations. Aurora continues to hold an exclusive option to license REV™ technology for cannabis in Australia.

Benefits of REV™ Technology in the Cannabis Industry

EnWave’s patented REV™ technology is a rapid, low temperature, continuous drying method that maintains the optimal terpene profile, flavour, as well as other product attributes during the drying process. The company’s vacuum-microwave technology enables uniform drying with flexible moisture content, unattainable with freeze drying or air drying.

In the cannabis industry, REV™ technology provides for capital expenditure savings on drying space (smaller footprint) and related HVAC investments, as well as the ability to free up space, which can be repurposed to increase the economic output of each facility. Furthermore, EnWave’s REV™ technology reduces drying time from 5-7 days to less than two hours, resulting in significant working capital savings and speed to market of product. The technology has certain additional benefits, including the support of industrial scale flow-though, accelerating the ability for large-scale processing of cannabis and CBD-rich biomass into intermediate or finished product.

About EnWave

EnWave Corporation, a Vancouver-based advanced technology company, has developed Radiant Energy Vacuum (“REV™”) – an innovative, proprietary method for the precise dehydration of organic materials. EnWave has further developed patent-pending methods for uniformly drying and decontaminating cannabis through the use of REV™ technology, shortening the time from harvest to marketable cannabis products.

REV™ technology’s commercial viability has been demonstrated and is growing rapidly across several market verticals in the food, and pharmaceutical sectors including legal cannabis. EnWave’s strategy is to sign royalty-bearing commercial licenses with industry leaders in multiple verticals for the use of REV™ technology. The company has signed over twenty royalty-bearing licenses to date, opening up nine distinct market sectors for commercialization of new and innovative products. In addition to these licenses, EnWave has formed a Limited Liability Corporation, NutraDried Food Company, LLC, to develop, manufacture, market and sell all-natural cheese snack products in the United States under the Moon Cheese® brand.

EnWave has introduced REV™ as the new dehydration standard in the food and biological material sectors: faster and cheaper than freeze drying, with better end product quality than air drying or spray drying. EnWave currently has three commercial REV™ platforms:

  1. nutraREV® which is used in the food industry to dry food products quickly and at low-cost, while maintaining high levels of nutrition, taste, texture and colour;
  2. powderREV® which is used for the bulk dehydration of food cultures, probiotics and fine biochemicals such as enzymes below the freezing point, and
  3. quantaREV® which is used for continuous, high-volume low-temperature drying.

An additional platform, freezeREV®, is being developed as a new method to stabilize and dehydrate biopharmaceuticals such as vaccines and antibodies. More information about EnWave is available at www.enwave.net.

EnWave Corporation

Mr. Brent Charleton, CFA
President and CEO

For further information:

Brent Charleton, CFA, President and CEO at +1 (778) 378-9616
E-mail: bcharleton@enwave.net

Dan Henriques, CPA, CA, Chief Financial Officer at +1 (604) 835-5212
E-mail: dhenriques@enwave.net

Deborah Honig, Corporate Development at + 1 (647) 203-8793
E-mail: dhonig@enwave.net

Safe Harbour for Forward-Looking Information Statements: This press release may contain forward-looking information based on management’s expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product development, market position, expected expenditures, and the expected synergies following the closing are forward-looking statements. All third-party claims referred to in this release are not guaranteed to be accurate. All third-party references to market information in this release are not guaranteed to be accurate as the Company did not conduct the original primary research. These statements are not a guarantee of future performance and involve a number of risks, uncertainties and assumptions. No statement in this press release should be construed as a waiver of any party’s rights, and all such rights are reserved. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. 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.

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.

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Published at Wed, 29 May 2019 12:37:10 +0000

Charlotte’s Web Holdings Reports 2019 Q1 Earnings

Charlotte’s Web Holdings Reports 2019 Q1 Earnings

Charlotte’s Web Holdings, Inc. (CSE:CWEB, OTCQX:CWBHF), the market share leader in whole-plant hemp extract products, today reported financial results for the first quarter ended March 31, 2019. All amounts are expressed in United States dollars. Certain metrics, including those expressed on an adjusted basis, are non-IFRS measures.

Highlights of First Quarter 2019 Results

  • Organic consolidated YoY revenue growth of 66% to $21.7 million
  • Gross profit of $15.9 million, 73% of consolidated revenue
  • Adjusted EBITDA of $4.5 million, 21% of consolidated revenue
  • Net income of $2.3 million, 11% of consolidated revenue
  • 51% of revenue from retail outlets
  • EPS basic of $0.03 per share; EPS diluted of $0.02 per share

Business Highlights

  • Executive leadership expansion with CEO, COO and CGO additions
  • First orders shipped to largest food and drug retailers in the USA
  • Retail doors increased more than 60% from 2018 year-end to over 6,000 at May 8, 2019
  • New pet line with 12 SKU’s introduced
  • Digital advertising and ecommerce pilot programs commenced with Google and Amazon
  • Hemp acreage planting for 2019 more than doubling to over 700 acres
  • Hemp Authority Certification received
  • FDA commits to working with hemp industry on hemp product regulations

On May 15th, 2019 Charlotte’s Web appointed Deanie Elsner as the Company’s new Chief Executive Officer. Ms. Elsner comes to Charlotte’s Web from Fortune 500 company Kellogg’s where she was President of the $3B dollar U.S. Snacks division – the largest business unit in the Kellogg Global portfolio and prior to that served more than 20 years in various leadership roles at the Kraft Foods Company including Chief Marketing Officer.

“Charlotte’s Web has established itself as the market leader in sales, and more importantly as a trusted brand with an impeccable reputation,” said Ms. Elsner. “As someone with an extensive career in the CPG industry leading global brands, I see a tremendous opportunity to further influence, shape and grow the CBD category while turning Charlotte’s Web into a household product name that consumers can rely on around the world. My priority is to raise the Company’s level of operational effectiveness and accelerate growth opportunities acting with urgency and decisiveness.”

Q1-2019 Business Review

The first quarter concluded with significant retail expansion for Charlotte’s Web as shipments commenced to three national brand supermarket/grocery and drugstore retailers in select states. Subsequent to the quarter, shipments commenced to a fourth national retailer and Charlotte’s Web has surpassed 6,000 retail locations now receiving shipments of the Company’s leading hemp CBD products. More than 2,300 new retail doors were added since the start of the year – more than all of 2018 – significantly expanding the Company’s physical brick and mortar retail reach.

As of May 28, 2019, Charlotte’s Web is shipping product to four national retailer locations covering 18 states combined. The Company expects additional states and stores to be added by these retailers throughout 2019. A major grocery retailer is carrying all categories of the Company’s product portfolio including oils, capsules and topicals, while the remaining national retailers have begun their Charlotte’s Web product introduction with topical products only.

Charlotte’s Web recently launched a line of pet products including functionally focused chews with synergistic ingredients to target specific health functions including: Calming, Hips & Joints and Cognition. The CBD Pet market is forecast to grow rapidly at a Compound Annual Growth Rate (CAGR) of 151% between 2018-2022 to a market size of US$1.16B according to market research firm, Brightfield Group.

The pet line was developed in adherence with the strict quality standards of the National Animal Supplement Council (“NASC”). NASC is at the forefront to safely regulate the pet market for animal supplements, offering a quality seal audit program and keeping in close contact with the FDA. Charlotte’s Web is one of only a few hemp companies to be a member of the NASC.

To support the growing product portfolio and retailer demand, Charlotte’s Web is more than doubling the number of acres planted for 2019 to over 700 acres. The Company planted 300 acres of hemp in 2018 and harvested 675,000 pounds of raw hemp compared to 63,000 pounds in 2017.

“With the passing of the 2018 Farm Bill, we experienced a rapid increase in the major retail category as hemp became federally legal,” said Deanie Elsner, President and Chief Executive Officer.  “This momentum is continuing as consumer awareness and retailer interest surrounding hemp and CBD increases. We believe we’ll continue to see expansion in this area with additional retailers coming onboard and we expect continued roll-out to new states from existing retail customers throughout the year. Some retailers may wait for further clarity from the Food and Drug Administration (FDA) before including ingestible products, while others have been moving forward and expanding the number of stores that carry Charlotte’s Web products.”

The FDA will hold a public hearing on regulating hemp-derived CBD on May 31, 2019 to explore pathways for dietary supplements and/or conventional foods containing CBD and how it might regulate manufacturing, marketing and labeling. Charlotte’s Web has significant interest in effective industry regulation and is coordinating its efforts through its membership with the U.S. Hemp Roundtable to submit verbal and written comments to the FDA.

Charlotte’s Web also supports self-regulation of the hemp industry through its membership in the U.S. Hemp Authority™. The U.S. Hemp Authority Certification Program is a new initiative to provide high standards, best practices and self-regulation for the hemp industry.  The certification requires meeting or exceeding stringent self-regulatory standards for Current Good Manufacturing Practices (cGMP) and passing an annual third-party audit. The certification is designed to increase consumer and law enforcement confidence in hemp products being sold in the market today by designating them as safe and legal.  Charlotte’s Web has received certification from the U.S. Hemp Authority.

Q1-2019 Financial Review

First Quarter 2019 Results

The following table sets forth selected financial information for the periods indicated.

Three months ended

March 31,

U.S. $ millions, except per share data

2019

2018

Revenue

$

21.7

$

13.1

Gross profit before biological assets adjustment

$

15.8

$

10.3

Net impact, fair value of biological assets

$

0.1

$

0.2

Gross profit 

$

15.9

$

10.5

Operating expenses

$

13.2

$

6.4

IPO related costs expensed

$

$

Income before taxes

$

3.0

$

4.1

Net income 

$

2.3

$

3.1

EPS basic 

$

0.03

$

0.04

EPS diluted

$

0.02

$

0.04

Adjusted EBITDA

$

4.5

$

4.6

Assets:

Mar 31, 2019

Mar 31, 2018

Dec 31, 2018

Cash and cash equivalents

$

69.1

$

10.4

$

73.4

Total assets

$

171.7

$

24.3

$

139.1

Liabilities:

Long-term liabilities

$

4.6

$

0.4

$

3.5

Total liabilities

$

20.1

$

8.3

$

17.6

The following information sets forth selected quarterly revenue information for the Company’s recent fiscal quarters.

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

U.S. $ millions

2019

2018

2018

2018

2018

2017

2017

2017

2017

Total revenue

$

21.7

$

21.5

$

17.7

$

17.2

$

13.1

$    12.5

$

11.3

$

9.1

$

7.1

First quarter revenue increased 66% year-over-year to $21.7 million as broader consumer awareness of CBD based products continues to drive increased usage in all product categories. Human nutrition products, topicals and animal nutrition products growing by 67%, 455% and 79%, respectively. Retail channel growth is increasing as the large mass retailers begin carrying Charlotte’s Web products. During the first quarter 2019, retail channel revenue accounted for approximately 51% of total revenue compared to 47% for the same period in the prior year.Gross profit totaled $15.9 million for Q1-2019, compared to $10.5 million for the first quarter of 2018, a year-over-year increase of 51.4%. As a percent of total revenue, gross profit in Q1-2019 was 73.4%, compared to 80.5% for the same period in 2018. Gross profit prior to biological asset adjustments as a percentage of revenue for Q1-2019 and 2018 was 72.8% and 79.0%, respectively.

Adjusted EBITDA for the quarter was $4.5 million or 21% of consolidated revenue compared to $4.6 million and 35% of consolidated revenue for the same period in the previous year. The Adjusted EBITDA ratio during the first quarter reflects continued investment in infrastructure and personnel as the Company builds its internal capabilities to support expected revenue growth for the remainder of 2019 and beyond.

“We are forecasting revenue to grow at a faster pace than operating expenses, particularly in the back half of the year,” stated Rich Mohr, Chief Financial Officer of Charlotte’s Web. “This supports our adjusted EBITDA guidance in the 30%-35% range on an annualized basis, in line with our historical norms. Our sales volumes continue to increase on a quarterly basis and we’re expecting continued top-line growth during the second quarter and during the last half of the year. We reiterate our revenue guidance for 2019 of between $120 million and $170 million.”

The following table sets forth Adjusted EBITDA1 as a percentage of revenue for recent fiscal quarters.

Q1

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

2019

2018

2018

2018

2018

2017

2017

2017

2017

Adjusted EBITDA

$

4.5

$

3.7

$

5.4

$

6.1

$

4.6

$

4.7

$

4.4

$

2.4

$

0.9

Percent of revenue

20.9%

17.5%

30.7%

35.4%

35.4%

37.8%

39.4%

26.5%

19.7%

Balance Sheet and Cash Flow

The Company used $3.7 million of cash in operations during Q1-2019 compared to $4.1 million of cash provided from operations during Q1-2018. The reduction in cash flows from operations primarily reflects the investment in inventory associated with the growth required to supply new retail outlets and the planting of the 2019 hemp crop which will more than double in size over the previous year. The Company’s cash at March 31, 2019 was $69.1 million compared to $73.4 million on December 31, 2018. Working capital at March 31, 2019 was $93.9 million compared to $93.8 million at December 31, 2018.

Three months ended

March 31

2019

2018

$ Change

% Change

Cash beginning of period

$

73,404

$

7,056

$

66,348

940%

Cash flows from (used in):

Operating activities

-(3,689)

4,071

-(7,760)

-191%

Investing activities

-(707)

-(649)

-(58)

9%

Financing activities

47

-(94)

141

n/a

Cash, end of period

$

69,055

$

10,384

$

58,671

565%

Consolidated Financial Statements and Management’s Discussion and Analysis

The Company’s unaudited interim condensed financial statements and accompanying notes for the periods ended March 31, 2019  and 2018 and related management’s discussion and analysis of financial condition and results of operations (“MD&A”) are available under the Company’s profile on SEDAR at www.sedar.com and on the Investor Relations section of the Company’s website at https://investors.charlottesweb.com.

Conference Call

Management will host a conference call to discuss the Company’s first quarter 2019 results at 8:00 am ET on Wednesday, May 29, 2019. To participate in the call, please dial 1-647-427-7450 or 1-888-231-8191 approximately 10 minutes before the conference call and provide conference ID 7798405. A recording of the call will be available through June 5, 2019. To listen to the rebroadcast please dial 1-416-849-0833 and provide the same conference ID.

A webcast of the call can be accessed through the investor relations section of the Charlotte’s Web website.

About Charlotte’s Web Holdings, Inc.

Charlotte’s Web Holdings, Inc. is the market leader in the production and distribution of innovative hemp-based cannabidiol (“CBD”) wellness products. Founded by the Stanley Brothers, the Company’s premium quality products start with proprietary hemp genetics that are responsibly manufactured into whole-plant hemp extracts naturally containing a full spectrum of phytocannabinoids, including CBD, terpenes, flavonoids and other beneficial hemp compounds. Industrial hemp products are non-intoxicating. Charlotte’s Web product categories include CBD Oil tinctures(liquid products), CBD capsules, CBD topicals, as well as CBD pet products.  Charlotte’s Web hemp-based whole plant extracts are sold through select distributors, brick and mortar retailers, and online through the Company’s website at www.CharlottesWeb.com. The rate the Company pays for agricultural products reflects a fair and sustainable rate driving higher quality yield, encouraging good farming practices, and supporting U.S. farming communities.

Charlotte’s Web is a socially conscious company and is committed to using business as a force for good and a catalyst for innovation. The Company weighs sound business decisions with consideration for how its efforts affect its employees, customers, the environment, and the communities where its employees live and where it does business, while maximizing profits and strengthening its brands. The Company’s management believes that socially oriented actions have a positive impact on the Company, its employees and its shareholders. Charlotte’s Web donates a portion of its pre-tax earnings to charitable organizations.

Shares of Charlotte’s Web trade on the Canadian Securities Exchange under the symbol “CWEB” and in the United States on the OTCQX under the symbol “CWBHF”.  Charlotte’s Web has 39,772,154 Common Shares outstanding and 138,332.38 Proportionate Voting Shares convertible at 400:1, for an effective equivalent of 95,105,106 Common Shares outstanding.

1.

Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) is not a recognized performance measure under IFRS. The term EBITDA consists of net income (loss) and excludes interest (financing costs), taxes and depreciation. Adjusted EBITDA also excludes share-based compensation, IPO related costs, impairment of assets and adjustments for fair valuing of biological assets. Adjusted EBITDA is included as a supplemental disclosure because Management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges and charges or gains that are nonrecurring. The most directly comparable measure to adjusted EBITDA calculated in accordance with IFRS is net income (loss). The following is a reconciliation of the Company’s net income (loss) to Adjusted EBITDA.

Forward-Looking Information

This press release may contain forward-looking information within the meaning of applicable securities legislation. In the interest of providing the shareholders and potential investors of Charlotte’s Web Holdings, Inc. with information about the Company and its subsidiaries, including management’s assessment of the Company and its subsidiaries’ future plans and operations, certain information provided in this press release constitutes forward-looking statements or information (collectively, “forward-looking statements”). Forward-looking statements are typically identified by words such as “may”, “will”, “should”, “could”, “anticipate”, “expect”, “project”, “estimate”, “forecast”, “plan”, “intend”, “target”, “believe” and similar words suggesting future outcomes or statements regarding an outlook. Although these forward-looking statements are based on assumptions the Company considers to be reasonable based on the information available on the date such statements are made, such statements are not guarantees of future performance and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. The forward-looking information contained in this press release is based on certain assumptions and analysis by management of the Company in light of its experience and perception of historical trends, current conditions and expected future development and other factors that it believes are appropriate.

The Company’s forward-looking statements are subject to risks and uncertainties pertaining to, among other things, revenue fluctuations, nature of government regulations, economic conditions, loss of key customers, retention and availability of executive talent, competing products, common share price volatility, loss of proprietary information, product acceptance, internet and system infrastructure functionality, information technology security, cash available to fund operations, availability of capital and, international and political considerations, including but not limited to those risks and uncertainties discussed under the heading “Risk Factors” in the MD&A and the Company’s other filings with securities regulators. The impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty as these are interdependent, and the Company’s future course of action depends on Management’s assessment of all information available at the relevant time. Except to the extent required by law, the Company assumes no obligation to publicly update or revise any forward-looking statements made in this press release, whether as a result of new information, future events, or otherwise. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on the Company’s behalf, are expressly qualified in their entirety by these cautionary statements.

CHARLOTTE’S WEB HOLDINGS, INC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(In thousands of United States dollars)

March 31,
2019

December 31,
2018

ASSETS

Current assets:

Cash

$            69,055

$            73,404

Trade and other receivables

5,473

4,874

Inventories

26,944

23,969

Prepaid expenses and other current assets

7,036

3,917

Income taxes receivable

853

1,787

109,361

107,951

Non-current assets:

Property and equipment, net

10,701

6,806

Intangibles

621

619

Deferred tax assets

50,683

23,449

Loan due from related parties

114

128

Other long-term assets

181

181

$          171,661

$          139,134

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$              2,863

$              3,379

Accrued liabilities

9,809

10,014

Deferred revenue

583

467

Current portion of notes payable

9

9

Current portion of lease obligations

2,205

283

15,469

14,152

Non-current liabilities:

Long-term note payable

9

12

Long-term lease obligations

1,974

113

Deferred rent

73

Other long-term liabilities

2,611

3,286

20,063

17,636

Shareholders’ equity:

Share capital

129,455

101,175

Contributed surplus

1,984

2,498

Retained earnings

20,159

17,825

151,598

121,498

$          171,661

$          139,134

CHARLOTTE’S WEB HOLDINGS, INC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

(In thousands of United States dollars, except per share amounts)

Three months ended March 31,

2019

2018

Revenue

$

21,700

$

13,092

Cost of sales

5,906

2,744

Gross profit before loss on fair value of biological assets

15,794

10,348

Realized fair value amounts included in inventory sold

(142)

(189)

Gross profit

15,936

10,537

Expenses:

General and administrative

8,461

4,066

Sales and marketing

4,560

2,063

Research and development

191

126

Initial public offering related costs

107

13,212

6,362

Operating income

2,724

4,175

Financing costs

(57)

(64)

Interest income

356

21

Other income

(3)

Income before taxes

3,020

4,132

Income taxes

(686)

(1,029)

Net income and comprehensive income

$

2,334

$

3,103

Weighted average number of common shares – basic

93,213,977

79,554,964

Weighted average number of common shares – diluted

106,316,146

85,296,454

Earnings per share – basic

$

0.03

$

0.04

Earnings per share – diluted

$

0.02

$

0.04

CHARLOTTE’S WEB HOLDINGS, INC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In thousands of United States dollars)

Three months ended March 31, 2018

Share capital

Contributed
surplus

Retained
earnings

Total

Balance – December 31, 2017

$

5,835

$

787

$

6,017

$

12,639

Share-based compensation expense

259

259

Net income

3,103

3,103

Balance – March 31, 2018

$

5,835

$

1,046

$

9,120

$

16,001

Three months ended March 31, 2019

Share capital

Contributed
surplus

Retained
earnings

Total

Balance – December 31, 2018

$

101,175

$

2,498

$

17,825

$

121,498

Exercise of broker stock warrants

1,246

(822)

424

Income tax benefit from stock options

27,034

27,034

Share-based compensation expense

308

308

Net income

2,334

2,334

Balance – March 31, 2019

$

129,455

$

1,984

$

20,159

$

151,598

CHARLOTTE’S WEB HOLDINGS, INC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of United States dollars)

Three months ended March 31,

2019

2018

Cash flows from operating activities:

Net income

$

2,334

$

3,103

Items not involving cash:

Depreciation and amortization

926

269

Change in fair value of biological assets

(142)

(189)

Accretion on convertible note

42

Change in fair value of convertible note

(30)

Allowance for doubtful accounts

170

43

Inventory reserve

373

Deferred rent

(73)

(9)

Share-based compensation

308

259

Gain on sale of assets

4

Deferred income taxes

(200)

9

Changes in working capital:

Trade and other receivables

(769)

(295)

Inventories

(3,155)

(363)

Prepaid expenses and other current assets

(3,119)

(317)

Accounts payable

(516)

(132)

Accrued liabilities

(205)

781

Income taxes

934

999

Deferred revenue

116

(99)

Other long-term liabilities

(675)

(3,689)

4,071

Cash flows from investing activities:

Purchases of property and equipment and intangibles

(768)

(825)

Proceeds from sale of assets

47

Proceeds from related party

14

Other long-term assets

176

(707)

(649)

Cash flows from financing activities:

Proceeds from stock warrant exercise

424

Payments on notes payable

(3)

(15)

Payments on lease obligations

(374)

(79)

47

(94)

Increase (decrease) in cash

(4,349)

3,328

Cash, beginning of year

73,404

7,056

Cash, end of period

$

69,055

$

10,384

Supplemental disclosures of cash flow information:

Cash paid for interest

$

57

$

64

Cision

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SOURCE Charlotte’s Web Holdings, Inc.

Published at Tue, 28 May 2019 20:19:26 +0000