TORONTO, Feb. 20, 2020 /CNW/ - 48North Cannabis Corp.
("48North" or the "Company") (TSXV: NRTH), a leading licensed
cannabis producer focused on low-cost cultivation, brand, and
consumer-friendly cannabis products, has released its financial and
operating results for the second quarter ended December 31, 2019. The Company's financial
statements and related management discussion and analysis for the
period are available on the Company's SEDAR profile at
www.sedar.com and on the Company's website at
www.48nrth.com/investors.
Financial and Operating Highlights for Fiscal Q2 2020
- Quarterly revenue of $1.8
million, representing a 13 per cent quarter-over-quarter
increase over first-quarter 2020 revenues of $1.6 million.
- $33 million of cash and cash
equivalents on hand at the end of the quarter, positioning 48North
well to execute on its business plan.
- Q2 marks the last quarter where the Company's revenue is
expected to be derived exclusively from 48North's indoor
cultivation facility, delshen. In subsequent quarters, 48North
expects to begin reporting revenue increases from the sale of
recently legalized Cannabis 2.0 products, and 48North's contract
manufacturing business, fume labs which will utilize cannabis from
Good:Farm, one of the country's first and largest licensed outdoor
production facilities.
Events Subsequent to Second-Quarter Fiscal 2020
- The Company announced that it signed an exclusive curation
partnership with Thoughtfull, a creation of Indigo Books & Music Inc. Under the terms of
the partnership, 48North will be Thoughtfull's exclusive cannabis
partner, holding responsibility for curating an offering of
cannabis-related accessories. Leveraging 48North's trusted consumer
brand and relationships within the industry, Thoughtfull will
curate an array of premium cannabis accessories.
- The Company announced that third-party laboratory testing
confirmed that 48North's first outdoor harvest at Good:Farm yielded
high-quality, high-THC and CBD cannabis.
- The Company announced the creation of fume labs, a strategic
partnership between 48North and humble+fume. fume labs, is a
cannabis-focused manufacturing and extraction entity with
significant capacity to contract manufacture vaporizer products.
fume labs is fully operational and licensed; located within
48North's licensed facility Good:House, located in Brantford, ON. This addition strategically
strengthens 48North's capacity to be a leader in the development
and manufacturing of next-generation cannabis products and contract
manufacturing.
- 48North was pleased to announce that it had secured additional
product listings for next-generation cannabis products in new
Canadian markets, including: British Colombia, Saskatchewan, Manitoba, and New
Brunswick. As a result, 48North-owned products will now be
available in 7 out of 10 Canadian provinces, representing over 95
per cent of the population.
Product Launch Update
Flower
- 48North expects to begin selling dried flower into the
Alberta market under the
48North brand in March.
- 48North's First Harvest brand is expected to be
available for retail sale in Alberta in March. It is the Company's
expectation that this product will roll-out in further provinces in
the near term.
- The Company's Fleur du Jour brand is expected to be
available for retail sale in Quebec in April.
Next-generation products
- 48North expects to be launching Apothecanna, the
Company's licensed cannabis topicals brand, in Ontario in February. It is the Company's
expectation that this product will roll-out in further provinces in
the near term.
- 48North expects to be launching its licensed Avitas vape
product in Ontario in March. It is
the Company's expectation that this product will roll-out in
further provinces in the near term.
48North will continue to sell its dried flower into Quebec and pre-rolls in Ontario and Alberta.
"48North was laser-focused in Q2 2020 on operational upgrades,
successfully conducted post harvest activities from Good:Farm,
building consumer loyalty, and preparing the launch of our
impressive suite of next-generation brands. Provincial wholesales,
retailers, and consumers alike are demanding 48North's products –
largely a result of the significant progress the Company has made
in building a strong, authentic and trusted brand in Canada," said Alison
Gordon, CEO of 48North Cannabis Corp.
"In addition to increased revenues derived from 48North's
branded product, the Company expects to begin showing significant
revenue with strong margins from its contract manufacturing
business, fume labs. fume labs has signed contracts with a number
of North America's largest
cannabis brands, a true testament to the operational excellence of
48North's Good:House, " continued Alison.
Selected Financial Information
All amounts are
expressed in Canadian dollars
|
|
|
|
3-months
ended
December 31,
2019
|
6-months
ended
December 31,
2019
|
Revenue
|
$1,808,027
|
3,402,748
|
Net loss
|
$6,161,177
|
$3,919,704
|
Total
assets
|
$98,677,592
|
$98,677,592
|
Total
liabilities
|
$12,801,949
|
$12,801,949
|
Cash on
hand
|
$32,615,745
|
$32,615,745
|
Second Quarter 2020 Results Conference Call
When:
February 21, 2020 at 8:30 AM (ET)
Dial-in number: 1-888-231-8191
The conference ID is 4563816 and you will be prompted to provide
your name and company.
About 48North
48North Cannabis Corp. (TSXV: NRTH) is a vertically
integrated cannabis company focused on the health and wellness
market through cultivation and extraction, as well as the creation
of innovative, authentic brands for next-generation cannabis
products. 48North is developing formulations and manufacturing
capabilities for its own proprietary products, as well as
positioning itself to contract manufacture similar products for
third parties. 48North operates Good:Farm, a 100-acre organic
cannabis farm which produces organically-grown, sun-grown cannabis,
securing a significant first-mover advantage in the production of
low-cost, next-generation, extract-based cannabis products. In
addition, 48North operates two indoor-licensed cannabis production
sites in Ontario. 48North cultivates unique genetics at its
wholly owned subsidiary, DelShen Therapeutics Corp. ("DelShen") and
processes cannabis and manufactures next-generation cannabis
products at Good & Green Corp. ("Good & Green"), both
Licensed Producers under the Cannabis Act. 48North has a growing
portfolio of brands that include Latitude, a women's cannabis
platform (explorelatitude.com); Mother & Clone, a rapid-acting
sublingual cannabis nanospray (momandclone.com); Avitas, a
single-strain vaporizer cartridge (avitasgrown.com); Quill, a
leader in the manufacturing of beautifully designed,
lifestyle-focused and sleek vape products (quill.me) and Sackville
& Co, a leading U.S.-based cannabis brand focused on
design-forward cannabis accessories and CBD products
(sackvilleandco.com).
DISCLAIMER & READER ADVISORY
Neither the 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. Certain statements contained in this press release
constitute forward-looking information. These statements relate to
future events or future performance. The use of any of the words
"could," "intend," "expect," "believe," "will," "projected,"
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on the parties' current
beliefs or assumptions as to the outcome and timing of such future
events. Actual future results may differ materially. Please refer
to the Company's SEDAR filings for further details concerning the
risks associated with the Company's business. The forward-looking
information contained in this release is made as of the date hereof
and the parties are not obligated to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information contained
herein.
SOURCE 48North Cannabis Corp.