SMITHS FALLS, ON, Nov. 25, 2014 /CNW/ - Tweed Marijuana Inc. (TSXV:
TWD) ("Tweed Marijuana" or the "Company"), today announced its
financial results for the three and nine month period
ended September 30, 2014. Tweed's wholly owned subsidiaries
Tweed Inc. and Tweed Farms Inc. are Licensed Producers under
the Marihuana for Medical Purposes
Regulations (MMPR).
Financial Summary
The company reported third quarter sales of $316,117 bringing YTD sales to $504,353. Gross margin was $74,475 and $183,754 for the three and nine months ended
September 30, 2014 respectively. The
cash position was $8,357,196 at the
end of the quarter. Net loss for the three and nine month period
was $2,376,592 and $6,293,189.
Overview
During the quarter each of the two operating companies, Tweed
and Tweed Farms, focused upon the priority of managing a limited
inventory to a sustainable client list while implementing
production in both the Smiths
Falls and Niagara facilities with the objective of
establishing a substantial and sustained increase in inventory and
clients by December 2014.
Tweed has been focused on steadily building-out capacity to meet
market demand. Its first product harvest in May, for example, was
the output of a single growing room. Tweed had three grow
rooms in production by the end of July and on August 31 had an additional three grow rooms
brought online, bringing production capacity to six grow rooms by
the end of the quarter and meaning that harvests are now six-fold
larger than early harvests. Tweed has committed to
introducing an additional six rooms by the end of calendar 2014 and
remains on pace to reach this target.
In July Tweed announced that it had entered into collaborative
research partnerships with researchers from Ryerson University and the University of Ottawa to increase the knowledge base
surrounding medical marijuana. These research projects
underscore the significant opportunity that exists for early
entrants into this sector to expand the knowledge base relating to
medical marijuana and to develop proprietary knowledge and
intellectual property. Research will be initially focused on
examining environmental factors that can influence the quality and
yield of medical marijuana, as well as assessing correlations
between active ingredients in medical marijuana and strain
effectiveness on selected ailments.
Tweed Farms
On June 19, 2014, Tweed Marijuana
acquired all the assets of Prime 1 Construction Services Corp.,
including related land, greenhouse and building. On September 19, 2014, the company name was changed
to Tweed Farms Inc. On August 11,
2014, Tweed Farms received its Health Canada license to grow
and ship marijuana plants and subsequently commenced a growing
cycle in 10% of the 350,000 square foot facility.
Subsequent Events
Harvests Underway: On October 17,
2014, Tweed Farms commenced shipping its plants to Tweed for
harvesting. On November 14, 2014 the
harvest had been cut, trimmed and was drying and curing so as to be
available for sale in the beginning of December along with Tweed
harvests from six growing rooms at its Smiths Falls facility that had commenced in
October.
Corporate Governance: On October
28, 2014, Tweed Marijuana was pleased to announce the
addition of John K. Bell FCPA, FCA, ICD.D to its Board of
Directors. Mr. Bell brings a wealth of experience across a number
of industries, significantly enhancing the Company Board of
Directors. The Company anticipates this will be followed shortly by
the appointment of a new CEO.
Major Medical Outreach Investments: On November 4, 2014, Tweed announced that it had
made a major strategic investment in medical conferences, notably,
the Primary Care Updates series. The series took place in
Mississauga, Richmond Hill, Ottawa, Calgary and Vancouver and is typically attended by more
physicians than any other national continuing medical education
(CME) program. Members of Tweed's Medical Advisory Board were among
the faculty presenting. Tweed also announced that in conjunction
with other licensed producers it would be co-sponsoring through an
unrestricted grant, a 5-City CME program to be held in
February-March 2015 in partnership
with the Canadian Consortium for the Investigation of Cannabinoids
(CCIC).
License Renewed for a Further Year: On November 19, 2014, the Company announced that
Tweed had successfully renewed its license to cultivate and sell
marijuana under the MMPR. The renewed license allows Tweed to
produce up to 3,500 kilograms of marijuana over the next year,
reflecting Tweed's present built-out production capacity. Tweed
Marijuana also announced that Tweed Farms has been approved to
begin another growing cycle this December in a footprint
representing approximately 10% of the entire facility.
Teleconference Call
Bruce Linton, the Company's
Interim CEO, Chairman and Co-Founder, and Don Gibbs, the
Company's CFO, will host a conference call on November 26th,
2014 at 8:30 a.m. ET to discuss the Company's
financial results.
Date: November 26th, 2014
Time: 8:30 a.m. ET
Toll-Free Dial-In Number: (844) 835-6557
Participant International Dial-In Number: (224)
633-1282
Conference ID: 40361839
A replay of the call will be available beginning November
26th, 2014 at 2:30 p.m. ET through 11:59 p.m.
ET on December 10th, 2014 and can be accessed by
dialing 855-859-2056 (toll free in North America) or
404-537-3406 (International) and using access code 40361839.
Notice regarding Forward Looking Statements
This news release contains forward-looking statements including
statements about Tweed Marijuana's future operations, growth,
position within its sector and the ability of its subsidiary
companies to continue meeting the requirements of applicable
regulations. Such statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results
to be materially different from those expressed or implied above.
Such forward-looking statements are based on a number of
assumptions which may prove to be incorrect, including: the ability
to obtain necessary financing; the economy generally; the yield
from the Company's marijuana growing operations; consumer interest
in products; competition; regulation and unanticipated costs and
delays. Although Tweed Marijuana has attempted to identify
important factors that could cause actual results to differ
materially from those described above, there may be other factors
that cause results not to be as anticipated. Readers should
not place undue reliance on forward-looking statements. Tweed
Marijuana's public disclosure documents available at
www.SEDAR.com contain detailed discussion of the risk factors
associated with its business. The forward-looking statements
included in this news release are made as of the date of this news
release and Tweed Marijuana does not undertake an obligation to
update such forward-looking statements unless required by
applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Tweed Marijuana Inc.