TORONTO, Nov. 2, 2020 /CNW/ - 48North Cannabis Corp.
("48North" or the "Company") (TSXV: NRTH), a vertically integrated
cannabis company focused on manufacturing high-quality products,
building progressive and thought provoking brands, and low-cost
cultivation, has released its financial and operating results for
the fiscal year ended June 30,
2020.
"Fiscal 2020 has been a pivotal year for 48North," said
Charles Vennat, CEO of 48North.
"When I joined the company last year, we had a strong, resonant
brand, but lacked the products and production capability to compete
in the nascent recreational market. By adding operational rigour
and investing in our facilities, we have launched 26 SKUs across
the country, driven by cultivation and manufacturing capabilities
that allow us to compete and excel in both price and quality. This
progress is demonstrated by our 117% year-over-year revenue
increase, and our anticipated Q1 2021 results are expected to show
a 58% increase from Q4, 2020.
The team has built this momentum after responding to last year's
licensing hurdles, transitioning leadership, and facing the public
health crisis of a generation. Our products, brands, and
commercialization platform position us well to respond to the
industry's continued evolution, and I am optimistic about our
progress towards profitability."
In addition, the Company announced that it will be postponing
its Fiscal 2020 Year-End Conference Call to Monday, November 2 at 4:30
p.m. ET.
Financial and Operating Highlights for Full Year Fiscal 2020
and Subsequent Events:
- Revenue of $10.5 million, marking
a 117% increase from fiscal 2019
- For Q4 2020, revenue totaled $4.5
million, a 65% increase from Q3 2020
- Revenue for Q1 2021 is expected to be $7
million, which represents 67% of fiscal 2020 yearly net
revenues, and a 58% increase from Q4 2020
- At the end of fiscal 2020, 48North had $9.3 million in cash and cash equivalents on
hand
- Since June 2019, 48North has
launched 26 SKUs in the Canadian adult-use recreational cannabis
market. 48North launched products ranging in form from vaporizers,
topicals, pre-rolls, and intimacy goods.
- 48North's facilities are now built out and licensed. At
delshen, the Company's premium indoor cannabis facility located in
Kirkland Lake, 48North
consistently cultivates best-selling cannabis. At Good:House,
48North successfully completed the build out of Phase 2,
subsequently the Company received all of the necessary licenses
from Health Canada. And finally, at Good:Farm, the Company
successfully completed and received licensing for the build out of
its state-of-the-art drying barn giving the Company the required
space to process the cannabis planted at Good:Farm
- At Good:Farm, 48North illustrated the importance of outdoor
cultivation with one of the first and largest outdoor cannabis
facilities in Canada. The
company's 2019 Good:Farm harvest contributed to the low-cost for
development of many of 48North's next-generation cannabis products,
including: vaporizers, topicals, and flower. In preparation for its
second season, the Company transformed the farm into a regenerative
organic farm, implemented lessons learned from its first season,
and early indicators point to a very successful crop
- 48North signed a number of supply agreements and strategic
partnerships with cannabis brands and provincial boards, including;
BC Cannabis Stores, Liquor, Gaming & Cannabis Authority of
Manitoba, Saskatchewan Liquor
& Gaming Authority, Medical Cannabis by Shoppers Drug Mart
Inc., Apothecanna, Pax, and Indigo
- 48North launched two additional recreational cannabis
brands:
-
- Trail Mix: Building on the Company's belief that
high-quality cannabis experiences should be available to all,
48North's low-cost production advantage allows the Company to
produce this brand at competitive pricing. Looking ahead, Trail Mix
will include: additional Pax products, all-in-one disposable pens,
dried flower, and pre-rolls
- Latitude: Latitude builds on the successful 2018 launch
of LAT, an interactive, omni-channel platform that empowers women
to connect, engage and share their personal stories with cannabis.
This brand responds to a market need for the industry to support
customers seeking new ways to reset, rejuvenate and live well.
Launching products in a variety of different categories ranging
from sexual wellness to beauty and beyond
- 48North was awarded a Canadian Marketing Award for its
innovative approach to marketing cannabis in a highly regulated
marketplace
Selected Financial Information for Fiscal 2020
All amounts are
expressed in Canadian dollars
|
|
Year Ended June 30,
2020
|
Year Ended June 30,
2019
|
Revenue
|
10,471,728
|
4,832,150
|
Net comprehensive
loss
|
(40,273,758)
|
(8,127,074)
|
Basic and diluted
loss per share
|
(0.231)
|
(0.072)
|
Total
assets
|
57,774,849
|
91,022,901
|
Total
liabilities
|
7,115,071
|
5,221,564
|
Cash and cash
equivalents on hand
|
9,271,683
|
52,765,566
|
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 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.
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.
Public health crises, including the ongoing novel
coronavirus (COVID-19) pandemic, could have significant economic
and geopolitical impacts that may adversely affect the
Company's business, financial condition and/or results of
operations.
SOURCE 48North Cannabis Corp.