Christina Lake Cannabis Corp. Recaps Second Quarter Results
August 11 2022 - 7:00AM
(CSE: CLC) Christina Lake Cannabis Corp. (the
"
Company" or "
Christina Lake") is
pleased to recap its second quarter financial results for the
six-month period ended May 31, 2022. All amounts are expressed in
Canadian dollars unless otherwise noted.
Financial Highlights – Second
Quarter
Revenue: $2.3 million of total
revenue in Q2 FY2022, with 40% growth over Q1 FY2022 and 971% over
Q2 2021. Total revenue for the six months ending May 31, 2022
totaled $3.9M which has already exceeded the full fiscal 2021
year-end total of $3.6M. Revenue growth was driven by both an
expanding customer base and growing demand in premium distillate
products.
Gross Margin Before Fair Value
Adjustments: 56% in Q2 FY2022 compared to 55% in Q1 FY2022
and 67% in Q2 FY2021. The Company focused on finding production
efficiencies to combat price compression in the wholesale
distillate market as production and sales continued to ramp up.
Operating Expenses: Total
general & administrative expenses (“G&A Expenses”) declined
by 70% in Q2 FY2022 compared to in Q2 FY2021, driven by
year-over-year reductions in corporate development, marketing, and
share based compensation expenses.
Net Income: Net income in Q2
FY2022 was $22 thousand which is a $1.8 million increase from the
net loss incurred in Q2 FY2022. The Year-over-year improvement is
primarily driven by significant revenue growth and reduced G&A
Expenses.
EBITDA: The Company posted $184
thousand in positive EBITDA in Q2 FY2022, compared to a loss of
$507 thousand in Q1 FY2022 and a loss of $1.6 million in Q2 FY2021.
There was a one-time gain on settlement of $259 thousand related to
the redemption and cancellation of the Preferred Shares during Q2
FY2022. Year-over-year improvements again are primarily driven by
significant revenue growth and reduced G&A Expenses.
Cash & Working Capital: As
at May 31, 2022, the Company had $1.26 million of cash and $1.03
million in receivables. As announced on March 29, 2022, the Company
entered into secured promissory note agreement in the amount of
$2,000,000 bearing interest at a rate of 8% and maturing August 31,
2024. This was in connection with the redemption and subsequent
cancellation of the Class B Preferred Shares. There were also
13,000,000 common shares issued at a deemed price of $0.20 in
connection with the redemption. On March 15, 2022, the Company also
announced that it extended $3.1 million of existing convertible
debentures that were previously maturing twenty-four months from
the date of issuance to forty-two months. There were no amendments
to the conversion price or interest. As a result of the above
events, current liabilities reduced by approximately $6.2 million
as a large portion of the liabilities shifted out to long term
debt.
The Company was able to optimize processing
techniques which lead to consistent production of high potency
distilled oils and other extracts, while adding additional
processing capacity. That improvement was a key contributor to the
significant increase in the revenue from the prior fiscal year.
Fiscal 2021 was the first year the Company established a commercial
inventory for the sale of premium extracts and cannabis products.
The Company intends to finish processing its remaining biomass and
oils from both the inaugural 2020 crop & 2021 crop and will
look to accelerate processing of its third 2022 crop.
Ryan Smith, CFO, “our financial results
demonstrate that our business model is performing and that by
focusing upon high-quality, consistent cannabis oil, we can
continue to grow our top and bottom lines.”
ABOUT CHRISTINA LAKE
CANNABIS CORP.
Christina Lake Cannabis is a licensed producer
of cannabis under the Cannabis Act. It has secured a standard
cultivation license and corresponding processing amendment from
Health Canada (March 2020 and August 2020, respectively) as well as
a research and development license (early 2020). Christina Lake
Cannabis’ facility consists of a 32-acre property, which includes
over 950,000 square feet of outdoor grow space, offices,
propagation and drying rooms, research facilities, and a facility
dedicated to processing and extraction. Christina Lake Cannabis
also owns a 99-acre plot of land adjoining its principal site. CLC
focuses its production on creating high quality extracts and
distillate for its B2B client base with proprietary strains
specifically developed for outdoor cultivation to enhance
extraction quality.
For more information, please visit
www.christinalakecannabis.com and
www.sedar.com. CLC.CN
For more
Information, please
contact:
Jamie FrawleyInvestor Relations and Media Inquiries
jamie@clccanabis.com 416-268-9432
Reader Advisory
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR
HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.
This press release contains forward-looking
information and forward-looking statements within the meaning of
applicable securities laws (“Forward-Looking Statements”) including
and not limited to: the revenue growth; future crop growth and
distillate sales; production capacity; and operating expenses.
Forward-Looking Statements are based on certain expectations and
assumptions and are subject to known and unknown risks and
uncertainties and other factors that could cause actual events,
results, performance and achievements to differ materially from
those anticipated in these Forward-Looking Statements.
Forward-Looking Statements should not be read as guarantees of
future performance or results. Readers are cautioned not to place
undue reliance on these Forward-Looking Statements, which speak
only as of the date of this press release. The Company disclaims
any intention or obligation, except to the extent required by law,
to update or revise any Forward-Looking Statements as a result of
new information or future events, or for any other reason.
The press release should be read in conjunction
with the management’s discussion and analysis (“MD&A”) and
unaudited condensed consolidated interim financial statements and
notes thereto as at and for the six months ended May 31, 2022.
Readers should also refer to the section regarding “Non-IFRS
Measures” in the immediately following section of this press
release. Additional information about Christina Lake is available
on the Company’s profile on SEDAR at www.sedar.com.
In this press release, reference is made to
gross profit/(loss) before fair value adjustments and EBITDA which
are not measures of financial performance under International
Financial Reporting Standards (IFRS). These metrics and measures
are not recognized measures under IFRS, do not have meanings
prescribed under IFRS and are as a result unlikely to be comparable
to similar measures presented by other companies. These measures
are provided as information complementary to those IFRS measures by
providing a further understanding of our operating results from the
perspective of management. As such, these measures should not be
considered in isolation or in lieu of a review of our financial
information reported under IFRS. Further information regarding the
above can be found in the MD&A for the six months ended May 31,
2022, filed under the Company’s profile on SEDAR at
www.sedar.com.
Core Laboratories (NYSE:CLB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Core Laboratories (NYSE:CLB)
Historical Stock Chart
From Jul 2023 to Jul 2024