SMITHS FALLS, ON, June 29, 2015 /CNW/ - Tweed Marijuana Inc.
("TMI" or "the Company") (TSXV: TWD), parent company of Licensed
Producers Tweed Inc. and Tweed Farms Inc., is today releasing
audited financial statements for the 15-month period ended
March 31st, 2015
(FY15). The Company's audited financial statements and
Management's Discussion and Analysis document are available on
SEDAR.
As previously communicated, TMI received approval from the
Canada Revenue Agency (CRA) to revise its year-end to March 31st in its inaugural operating
year to align the year-end of TMI with its subsidiaries, Tweed Inc.
and Tweed Farms Inc., resulting in a 15-month fiscal year. As
a consequence, the fiscal period ended March
31, 2015 included a 5th quarter. The new
fiscal year, fiscal year 2016, commenced April 1st, 2015 and will end on
March 31st, 2016.
Sales for the three and fifteen month periods ended March 31st were $1,225,689 and $2,371,351 respectively. The average price per
gram sold was $7.25 and $7.17 for the three and fifteen-month periods
ended March 31st. In
addition, 52% of sales for the 15-month period occurred in the
5th quarter of the year.
Sales and volume grew steadily over the 15-month period, with
quarter-over-quarter growth including 91% growth in the fifth
quarter over the fourth quarter as the Company continued to advance
customer acquisition and retention strategies. Constant, diverse
supply of cannabis requires a large growing platform to satisfy the
diversity of clientele in the market and as such TMI invested in a
large platform throughout FY15 to bring supply and demand into
equilibrium. The Company ended FY15 with 34,000 sq. ft. of energy
efficient greenhouse growing space and 12 of an eventual 30
climate-controlled indoor growing rooms at its state-of-the-art
facility at 1 Hershey Drive in Smiths
Falls, ON.
Gross margin for the three and fifteen month periods ended
March 31st were 197% and
119% respectively, due to the gain on the change in the fair value
of biological assets (seeds and cannabis plants) more than
offsetting inventory expensed and production costs, in accordance
with International Financial Reporting Standards (IFRS). The
Company ended Fiscal 2015 with a healthy inventory of pre-salable
product in various stages of production, including unplanted
genetics. Further explanation of the Company's accounting for
biological assets and inventory is available in the notes to the
audited consolidated financial statements and Management's
Discussion & Analysis (MD&A) on SEDAR.
The Company's Net Loss for the Fiscal 2015 was $9,346,461 or a loss of $0.29 per share on both a basic and diluted
basis. The loss reflects the initial year of launching
commercial operations in a highly regulated industry and
establishing the largest cannabis-growing platform in Canada. The Company considers these necessary
investments for an industry leader who wishes to attract and retain
a large percentage of the market.
TMI's balance sheet at the end of March
31, 2015 was in a strong position to advance business
priorities and opportunities with cash and cash equivalents of
$21,445,821 and working capital of
$24,850,548.
Selected Annual & Quarterly Information:
|
FY 2015
|
Q5
|
Q4
|
Q3
|
Q2
|
Q1
|
Grams Sold
|
324,471
|
166,657
|
87,138
|
44,470
|
26,205
|
-
|
Revenue
|
2,371,351
|
1,225,589
|
641,309
|
316,117
|
188,236
|
-
|
Gross
Margin
|
2,826,204
|
2,411,855
|
230,595
|
74,475
|
109,279
|
-
|
Gross Margin
%
|
119%
|
197%
|
36%
|
24%
|
58%
|
-
|
Operating
Expenses
|
11,031,929
|
2,890,447
|
2,885,221
|
2,493,089
|
1,281,724
|
1,491,418
|
Subsequent Events:
On June 24th, 2015 the
Company announced an all-stock acquisition of Bedrocan Cannabis
Corp. (Bedrocan Canada) (TSX.V:BED). The transaction, contingent on
Bedrocan Canada shareholder approval and requisite regulatory
approvals, is expected to close at the end of August 2015. Bedrocan Canada will operate as a
distinct Licensed Producer and brand and continue to pursue
research & development opportunities that will benefit all TMI
operating companies. Existing subsidiaries Tweed Inc. and Tweed
Farms Inc. will also continue to operate under their present
structure and distinct market positioning.
Building permits were issued in April
2015 to commence infrastructure enhancements at Tweed Farms'
20-acre property in Southwestern Ontario. The current phase of
construction will add 316,000 sq. ft. of cost-effective growing
space and a separate 24,000 sq. ft. packaging facility with a
storage vault.
Analyst Call:
An analyst call is scheduled for 8:30 am
ET, Tuesday, June
30th, 2015. Bruce
Linton, Chairman and CEO of Tweed Marijuana Inc. and
Tim Saunders, CFO of Tweed Marijuana
Inc. will provide a financial and operational update covering FY15
and subsequent events.
Dial in: 888-231-8191
Conference ID: 76354407
SOURCE Tweed Marijuana Inc.