Entourage Health Corp. (formerly WeedMD Inc.)
(
TSX-V:ENTG)
(OTCQX:ETRGF)
(FSE:4WE) (“
Entourage” or the
“
Company”), a Canadian producer and distributor of
award-winning cannabis products and brands, is pleased to announce
its preliminary unaudited total revenues of $14.7 million(1) for
the three months ended September 30, 2021, representing another
quarter of sequential record sales growth across its adult-use and
medical sales channels.
The Company plans to file its third quarter 2021
financial statements and management’s discussion and analysis
pre-market on Tuesday, November 16, 2021. Entourage will host a
conference call at 10 a.m. Eastern Time same day to review the
results, provide an operational update and discuss recent
milestones.
“Over the past four quarters, we’ve continued to
see improved costs, expanded margins, and most critically,
continued demand for our products – all of which are contributing
to a meaningful gain in market share and a consistent increase in
our quarterly sales,” said George Scorsis, Interim CEO and
Executive Chair. “Our Q3 preliminary revenue results demonstrate
approximately 90% revenue improvement year-over-year as we continue
executing our transformation and site optimization initiatives to
bring more high-margin products to market. With the previously
announced acquisition of craft cultivator CannTx Life Sciences
expected to close imminently, we’re thrilled to be introducing
“craft” cultivars and products into our distribution network for
our medical clients and adult-use consumers – all of which will
also bring expanded value for our shareholders.”
Conference Call Details:
The conference call will be hosted by Mr.
Scorsis and Entourage’s CFO, Beth Carreon. Management will be
available for questions following opening remarks.
Date: |
Tuesday, November 16, 2021 |
Time: |
10 a.m. Eastern Time |
Dial-in Number: |
Canada/USA: 1-800-319-4610. International Toll:
1-604-638-5340Participants, please dial in and ask to join the
Entourage call |
Replay Dial-in: |
Canada/USA: 1-800-319-6413. International Toll:
1-604-638-9010Replay Access Code: 7966Available after 12:00 p.m.
Eastern Time, until December 16, 2021 |
Visit Entourage Health’s newly launched website
here. To access our corporate video, visit us here and to access
our latest investor presentation and corporate deck here.
Amendment to Credit
Facility
The Company also confirmed today is has signed
an additional amendment to its senior secured credit facility
entered into on March 29, 2019 (the “Credit Facility”). The latest
amendments to the Credit Facility modify the terms under which
Entourage secured up to $39 million of debt financing over a
three-year term ending in 2022.
Under the terms of the amendment, the Company
secured a deferral of certain of its financial covenants to
December 31, 2021. In addition, the Company has agreed to a 25
basis point increase in the applicable interest rate margin on the
Credit Facility, which continues to provide Entourage with
non-dilutive, tier-one bank financing and greater financial
flexibility in alignment with market conditions. A copy of the
conformed Credit Facility agreement will be made available on the
Company’s SEDAR page.
About Entourage Health
Corp.
Entourage Health Corp. (formerly WeedMD Inc.) is
the publicly traded parent company of WeedMD RX Inc. a licence
holder producing and distributing cannabis products for both the
medical and adult-use markets. The Company owns and operates a
158-acre state-of-the-art greenhouse, outdoor and processing
facility located in Strathroy, ON as well as a fully-licensed
26,000 sq. ft. Aylmer, ON processing facility, specializing in
cannabis extraction. With the addition of Starseed Medicinal, a
medical-centric brand, Entourage has expanded its multi-channeled
distribution strategy. Starseed’s industry-first, exclusive
partnership with LiUNA, the largest construction union in Canada,
along with employers and union groups complements Entourage’s
direct sales to medical patients. In July 2021, Entourage signed a
definitive agreement to acquire craft cultivator CannTx Life
Sciences Inc. which operates out of its state-of-the-art
micropropagation and specialty extraction facility in Guelph,
Ontario. Upon the expected closing in the fall of 2021, craft brand
Royal City Cannabis will be added to Entourage’s elite product
portfolio. The Company maintains strategic relationships in the
seniors’ market and supply agreements with Shoppers Drug Mart as
well as eight provincial distribution agencies where adult-use
brands Color Cannabis and Saturday Cannabis are sold. Entourage is
also the exclusive Canadian producer and distributor of
award-winning U.S.-based wellness brand Mary’s Medicinals sold in
both medical and adult-use channels.
For more information, please visit us at
www.entouragehealthcorp.com
Follow Entourage and its brands on
LinkedIn
Twitter: Entourage,
Color Cannabis, Saturday
Cannabis &
Starseed
Instagram:
Entourage, Color
Cannabis, Saturday
Cannabis &
Starseed
For further information, please
contact:
For Investor Enquiries:Valter
PintoManaging Director KCSA Strategic
Communications1-212-896-1254entourage@kcsa.com
For Media Enquiries:Marianella
delaBarreraSVP, Communications & Corporate
Affairs416-897-6644marianella@entouragecorp.com
(1) |
Preliminary and unaudited financial results are subject to
customary financial statement procedures by the Company and its
auditors. Actual results could be affected by subsequent events or
determinations. While the Company believes there is a reasonable
basis for these preliminary financial results, the results involve
known and unknown risks and uncertainties that may cause actual
results to differ materially. These preliminary fiscal results
represent forward-looking information. See "Forward Looking
Information" and “Financial Outlook”. |
Financial Outlook This news
release contains a financial outlook within the meaning of
applicable Canadian securities laws. The financial outlook has been
prepared by management of the Company to provide an outlook for the
Company’s forecasted revenue for the three months ended September
30, 2021 and may not be appropriate for any other purpose. The
financial outlook has been prepared based on a number of
assumptions including the assumptions discussed under the heading
“Forward Looking Information” below. The actual results of the
Company’s operations for any period will likely vary from the
amounts set forth in these projections and such variations may be
material. The Company and its management believe that the financial
outlook has been prepared on a reasonable basis. However, because
this information is highly subjective and subject to numerous
risks, including the risks discussed under the heading "Forward
Looking Information" below, it should not be relied on as
necessarily indicative of future results.
Forward Looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation which are
based upon Entourage's current internal expectations, estimates,
projections, assumptions and beliefs and views of future events.
Forward-looking information can be identified by the use of
forward-looking terminology such as "expect", "likely", "may",
"will", "should", "intend", "anticipate", "potential", "proposed",
"estimate" and other similar words, including negative and
grammatical variations thereof, or statements that certain events
or conditions "may", "would" or "will" happen, or by discussions of
strategy. The forward-looking information in this news release
includes, but is not limited to, statements in respect of the
Company’s projected revenue for the three months ended September
30, 2021.
The forward-looking information in this news
release is based upon the expectations, estimates, projections,
assumptions and views of future events which management believes to
be reasonable in the circumstances. Forward-looking information
includes estimates, plans, expectations, opinions, forecasts,
projections, targets, guidance or other statements that are not
statements of fact. Forward-looking information necessarily involve
known and unknown risks, including, without limitation, risks
associated with general economic conditions; adverse industry
events; loss of markets; future legislative and regulatory
developments; inability to access sufficient capital from internal
and external sources, and/or inability to access sufficient capital
on favourable terms; the cannabis industry
in Canada generally; the ability of Entourage to
implement its business strategies; the COVID-19 pandemic;
competition; crop failure; and other risks.
Any forward-looking information speaks only as
of the date on which it is made, and, except as required by law,
Entourage does not undertake any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise. New factors emerge from
time to time, and it is not possible for Entourage to predict all
such factors. When considering this forward-looking information,
readers should keep in mind the risk factors and other cautionary
statements in Entourage’s disclosure documents filed with the
applicable Canadian securities regulatory authorities on SEDAR at
www.sedar.com. The risk factors and other factors noted in the
disclosure documents could cause actual events or results to differ
materially from those described in any forward-looking
information.
NEITHER THE 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
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