TORONTO, Jan. 29, 2020
/CNW/ - National Access Cannabis Corp. (TSXV: META) d/b/a
Meta Growth ("Meta Growth", "META" or the "Company"),
Canada's largest publicly
traded recreational cannabis retailer by revenue1, today
announced its financial and operational results for the three
months ended November 30,
2019.
Financial and Operational Highlights for the Quarter Ended
November 30, 2019:
- Opened three retail cannabis stores, resulting in a total
portfolio of 33 corporately owned and operated stores
- Total revenue of $15.8 million at
a gross margin of 32%
- Extended maturity of $9 million
Loan from Opaskwayak Cree Nation to December
31, 2022
- $6.8 million Cash on hand at
quarter end
Highlights Subsequent to the Quarter Ended November 30, 2019:
- Stronger capital position to allow for execution and first
mover advantage in the Ontario
market with an announced $10 million
Bought Deal offering and an announced $11
million Loan Agreement with Opaskwayak Cree Nation, maturing
December 31, 2024
- Announced Services Agreements with two winners of the Ontario
Cannabis Store Lottery, and plans to open the new Meta Cannabis Co.
designed stores in Toronto at
Yonge and Gerrard, and the first licensed cannabis store in
Kitchener
- Strong demand of the 'cannabis 2.0 products' across our network
of stores
Selected Summary of Quarterly Financial
Results
Statement of Loss
Highlights
|
Three Months Ended
November 30
|
(in
CDN$'s)
|
2019
|
2018
|
$
Change
|
%
Change
|
Revenue
|
15,796,588
|
3,787,228
|
12,009,360
|
317%
|
Cost of Goods
Sold
|
10,784,525
|
2,339,307
|
8,445,218
|
361%
|
Gross
Profit
|
5,012,063
|
1,447,921
|
3,564,142
|
246%
|
Net Loss and
Comprehensive Loss
|
5,690,109
|
7,876,151
|
(2,186,042)
|
(28%)
|
Net Loss per
Share
|
$0.03
|
$0.05
|
($0.02)
|
|
|
|
|
|
|
For a more comprehensive overview of the financial highlights
presented in this press release, please refer to Meta Growth's
Condensed Interim Consolidated Financial Statements for the three
months ended November 30, 2019 and
2018, and the Company's Interim MD&A – Quarterly Highlights for
the three month period ended November
30, 2019. Both of these documents are available on the
Company's SEDAR profile at www.sedar.com.
"We continued to expand our store footprint in Q1 as three
additional stores opened in our retail enterprise network," said
Mark Goliger, CEO of Meta Growth.
"We have secured $21 million in
financing over the last month and will immediately be
putting these funds to use in order to expand our footprint in
Ontario, especially given the
increased competition now seen in the Alberta market. We are also excited
for the imminent opening of META branded stores in
Ontario with two winners of the
Ontario Cannabis Store Lottery. With the Ontario market finally opening up, and with
our funding in place to capitalize on obtaining a first mover
advantage in Ontario, we are
anticipating significant revenue growth for our company in
2020."
About Meta Growth
Meta Growth is a leader in secure, safe and responsible access
to legal recreational cannabis in Canada. Through its Canada-wide network of Meta Cannabis Co.™,
Meta Cannabis Supply Co.™ and NewLeaf Cannabis™ recreational
cannabis retail stores, Meta Growth enables the public to gain
knowledgeable access to Canada's
network of authorized Licensed Producers of cannabis. National
Access Cannabis d/b/a Meta Growth is listed on the TSX Venture
Exchange under the symbol (TSXV: META).
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.
Cautionary Statements
This news release contains
forward-looking statements and forward-looking information within
the meaning of applicable securities laws. The use of any of the
words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify forward
looking statements or information. Forward-looking statements and
information in this news release includes, but is not limited to,
opening and operating cannabis retail stores in Ontario. Although the Company believes that
the expectations and assumptions on which the forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information because the Company cannot give any assurance that they
will prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results and developments may differ materially from those that are
currently contemplated by these statements depending on, among
other things, risks relating to receipt of Retail Store
Authorizations for Ontario
cannabis retail stores; the ability of the Company to submit
additional store authorization applications and receipt of related
Retail Store Authorizations; 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; general business, economic, competitive,
political, regulatory and social uncertainties; the delay or
failure to receive regulatory approvals and the recreational
cannabis industry in Canada
generally. The Company cautions that the foregoing list of risks
and uncertainties is not exhaustive. The forward-looking statements
and information contained in this news release are made as of the
date hereof and the Company undertakes no obligation to update
publicly or revise any forward-looking statement or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
1 New Cannabis Ventures, Public
Cannabis Company Revenue & Income Tracker. Canada's largest publicly traded cannabis
retailer by revenue.
SOURCE National Access Cannabis Corp d/b/a Meta Growth