ABcann Global files Q2 2017 Financial Results and Provides Operational Update
August 29 2017 - 7:28PM
ABcann Global Corporation (TSX-V:ABCN) (“ABcann”
or the “Company”) is pleased to release the Company's financial
results for the three and six months ended June 30,
2017. Copies of the interim filings, including the
Management’s Discussion and Analysis, are available on the
Company's website and under the Company’s SEDAR profile at
www.sedar.com.
The first half of 2017 was transformational due
to the successful completion of ABcann’s go-public transaction and,
subsequent to June 30, the Company completed an additional
substantial equity raise. Achieving these milestones positions
ABcann to substantially expand its production capacity at both its
Vanluven and Kimmett locations, utilizing its approximately $43m in
current working capital.
“ABcann's first quarter as a publicly traded
issuer was a successful one, leading to the Company having over $40
million in current working capital,” said Aaron Keay, Chief
Executive Officer of ABcann. ”With our strong cash position, ABcann
expects to significantly increase production capacity in 2018 while
pursuing our aggressive construction and expansion timelines at
both Vanluven and Kimmett."
We expect that the increase in production
capacity will enable ABcann to increase the sales of our premium,
organically grown, pesticide free cannabis products in the current
domestic market and position the Company for global distribution in
the emerging markets we have targeted. Further, the ability to
serve larger and broader markets as a result of the production
increase positions ABcann extremely well for the anticipated adult
consumer market in July 2018.”
Company highlights from the first half
of 2017 included:
- ABcann completed multiple financings including a subscription
receipt offering for gross proceeds of $11.8 million and a private
placement of convertible debentures for gross proceeds of $15
million.
- Immediate expansion of the Company's fully operational Vanluven
facility was initiated and construction at ABcann's 150,000 square
foot Kimmett facility commenced with the engagement of Bird
Construction Inc. as general contractor and NORR Engineering as
project engineer.
- ABcann announced a strategic partnership agreement with
Cannabis Wheaton Income Corp. (“CBW”) that includes a $30m
investment into ABcann ($15m of which has been completed to
date). In addition, upon completion of the initial $30m equity
placement, CBW has the opportunity to finance a 50,000 square foot
expansion facility in a 50/50 joint venture.
- ABcann amended and extended the research contract in place with
the University of Guelph. The ongoing research is focused on the
controlled environment production of medicinal cannabis and has
become a contributing factor to increasing yields and a higher
quality, pesticide free standardized product.
- ABcann welcomed two new additional advisors in Prof. Raphael
Mechoulam and W. Brett Wilson. The Company also appointed Dr.
Michael Shannon as its chief medical consultant.
Subsequent to June 30,
2017:
- ABcann was included in the Horizons Medical Marijuana Life
Sciences ETF. The ETF offers investors direct exposure to a
basket of North American publicly listed companies that meet
minimum asset and liquidity thresholds.
- Additional listings on both the OTCQB Marketplace (ABCCF) and
FSE, the Frankfurt Stock Exchange (23Q) were obtained.
- The Company completed a private placement financing of common
shares to CBW at a price of $2.25 per share for proceeds of
$15m.
- The Company received approximately $7.5m in additional proceeds
from the exercises of nearly 12m warrants issued in connection with
2014 and 2015 private placements. These warrants were to expire on
September 9, 2017.
About ABcann Global Corporation
(TSX.V:ABCN) :
ABcann was one of the first companies to obtain
a production license under the Marijuana for Medical Purposes
Regulations, which it received on March 21, 2014. It obtained a
sales license on December 31, 2015. ABcann’s flagship facility in
Napanee, Ontario utilizes proprietary plant-growing technology,
including environmentally-controlled chambers capable of monitoring
and regulating all variables in the growing process. This approach
and the systems in place allow ABcann to produce organically grown
and pesticide-free, high-yielding plants, which, in turn, can
generate high-quality products that are consistent from batch to
batch. ABcann is able to control environmental and nutrient
demands, tailor-made for a particular strain of cannabis, without
the variation that is typical when producing large quantities in
less-controlled, larger rooms and greenhouse-type structures.
ABcann’s modular approach to systems technology eliminates scale-up
risk and allows ABcann to locate anywhere in the world and maintain
consistency and quality of product.
ABcann is expanding capacity in its current
facility to approximately 30,000 sq ft and concurrently undertaking
its expansion into a new 150,000 sq ft facility in Napanee. ABcann
is pursuing opportunities in Germany, Australia and other
jurisdictions as well as exploring the development of multiple
delivery vehicles.
ON BEHALF OF THE BOARD OF
DIRECTORS
"Aaron Keay"
Aaron Keay CEO and Director
For further information, please contact Aaron
Keay by email at aaron@ABcannglobal.com, or Leo Karabelas by phone
at 416 543-3120 or by email at leo.k@ABcannglobal.com
Neither 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.
Disclaimer for Forward-Looking
Information
Certain statements in this release are
forward-looking statements, which are statements that are not
purely historical, including any statements regarding beliefs,
plans, expectations or intentions regarding the future. Forward
looking statements in this news release include statements relating
to: ABcann’s ability to substantially expand its production
capacity at both its Vanluven and Kimmett locations; ABcann’s
ability to significantly increase production capacity in 2018 while
pursuing its aggressive construction and expansion timelines at
both Vanluven and Kimmett; ABcann’s ability to increase the sales
of its premium, organically grown, pesticide free cannabis products
in the current domestic market; ABcann’s ability to distribute
globally in the emerging markets it has targeted; ABcann’s ability
to serve the anticipated adult consumer market in July 2018 as a
result of its ability to serve larger and broader markets; and
ABcann’s ability to serve larger and broader markets as a result of
its production increase. Such statements are subject to risks and
uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements, including: (i) that ABcann may not be able to
substantially expand its production capacity at both its Vanluven
and Kimmet locations; (ii) that ABcann may not be able to
significantly increase production capacity in 2018 while pursuing
its aggressive construction and expansion timelines at both
Vanluven and Kimmett; (iii) that ABcann may not be able to increase
the sales of its premium, organically grown, pesticide free
cannabis products in the current domestic market; (iv) that ABcann
may not be able to distribute globally in the emerging markets it
has targeted; (v) that ABcann may not be able to serve the
anticipated adult consumer market in July 2018 as a result of its
ability to serve larger and broader markets; (vi) that ABcann may
not be able to serve larger and broader markets as a result of its
production increase; and (vii) other factors beyond the Company's
control. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them.
Readers are urged to consider these factors, and the more extensive
risk factors included in the Company’s filing statement dated March
31, 2017, which is available on SEDAR, carefully in evaluating the
forward-looking statements contained in this news release and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these
cautionary statements. The forward-looking statements in this news
release are made as of the date hereof and the Company disclaims
any intent or obligation to update publicly any such
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by
applicable securities laws.
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