WeedMD Reports First Quarter 2018 Financial Results
May 31, 2018 (Source) — WeedMD Inc. (TSX-V:WMD) (OTC:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical cannabis, has reported its financial and operating results for the first quarter ending March 31, 2018.
WeedMD is pleased to report revenues of $1.14 million for the first quarter of 2018. Revenues consisted of the sale of dried medical cannabis, live cannabis plants and cannabis oils, to both patients and through wholesale B2B channels. The Company also maintained a strong cash balance of $48 million as of the end of the quarter.
“With sales up 33% quarter over quarter, we are incredibly proud of what our team has achieved and we look forward to continued strong revenue growth throughout the remainder of 2018,” said Keith Merker, CFO of WeedMD. “We are nearing the second-site Health Canada Cultivation License for our large-scale, state-of-the-art, greenhouse expansion and are pleased to confirm that we have continued to successfully ramp up our operations, with our headcount increasing by an impressive 60% since the start of the year. Our recent merger announcement with Hiku and its coast-to-coast brand and retail footprint will enable the Company to be vertically integrated and control the full supply-chain, from seed to sale.” (See Hiku Brands Company Ltd. and WeedMD merger press release here).
|For the three month period ended March 31st||2018||2017|
|Net Comprehensive Loss||1,446,497||1,192,474|
|Adjusted Operating Loss¹||1,279,439||1,070,369|
|Cash Used from Operations||652,783||429,985|
|Loss per Share (Basic and Fully Diluted)||0.01||0.03|
|As at||March 31, 2018||December 31, 2017|
|Cash and Cash Equivalents||48,460,059||24,692,678|
¹Adjusted Operating Loss is not a recognized measurement under IFRS and this data may not be comparable to data presented by other companies. Management believes Adjusted Operating Loss to be an important measure of the Company’s day-to-day operations, by excluding non-cash gains and losses and/or non-recurring items.
WeedMD continues to be on budget with the retrofit of Phase I of its 610,000 sq. ft. state-of-the-art greenhouse in Strathroy, ON. The Company anticipates securing a license for this facility by the end of the second quarter of 2018.
- Situated on 98-acres of property with 610,000 sq. ft. or 14 acres of existing greenhouse structure in addition to ancillary buildings
- Phase I retrofit represents 220,000 sq. ft. of tempered glass greenhouse which is less than two years old
- With features such as full climate-control, supplemental lighting and black-out curtains, WeedMD has combined the best of indoor and greenhouse cultivation to create a true “hybrid” greenhouse
- Equipped with an on-site unlimited supply of natural clean water
- Modern fertigation system runs on full-recirculation loop which provides an accurate, innovative computerized method of monitoring plant nutrients and water. This will ensure that water is recycled and reused and does not leach into the surrounding area and that WeedMD meets its environmental responsibilities
- Boiler exhaust is scrubbed of CO2, cleaned and then utilized for production providing significant cost savings and ensuring optimal plant growth.
Operational and Corporate Highlights
- Closed the previously announced, oversubscribed $34.5 million bought deal equity financing
- Commenced the sale of cannabis oil products under the company’s Entourage™ and Axis™ brands
- Submitted an application to obtain a Health Canada Dealer’s Licence under the Controlled Drugs and Substances Act
- Appointed Kevin McGovern, chairman of McGovern Capital and founder of the beverage company SoBe, the fastest growing beverage company ever in the United States, as a board director
- Appointed Dr. Jonas Vanderzwan, a physician with more than 15 years of primary care experience, as Medical Director and Chair of the Clinical Advisory Board
- Completed strategic investments in Blockstrain Technology Corp., which has developed a comprehensive cannabis genetics archiving platform, and Snipp Interactive Inc., a global loyalty and promotions company focused on disruptive engagement platforms for consumers
- Ramped up the retrofit of a large-scale, fully-funded greenhouse expansion comprising 610,000 sq. ft., with 220,000 sq. ft. coming online in 2018. The expansion remains on-track and within budget, with first harvests expected in Summer 2018
- Entered into a partnership with the Technion-Israel Institute of Technology, joining the world-renown Cannabis Database Project, and collaborating on research of 25 of WeedMD’s strains
- Purchased the land and building of the Aylmer facility for $1,500,000
- On April 19, 2018, entered into a definitive agreement to merge with Hiku Brands, bringing together two highly-complementary businesses and creating a unique and market-differentiating vertically integrated company with an industry-leading portfolio of brands, growing retail footprint, and significant cannabis production capabilities. For more information on the transaction, please see Hiku’s investor presentation
The Company’s financial statements and related management’s discussion and analysis for the period are available under the Company’s profile on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of medical cannabis and oils under the ACMPR. The Company operates a 26,000 sq. ft. indoor facility in Aylmer, Ontario, and is awaiting its second-site cultivation license for its greenhouse facility located in Strathroy, Ontario, representing 610,000 sq. ft. or 14 acres under glass. WeedMD has entered into supply agreements in addition to strategic relationships with established cannabis brands. WeedMD is focused on providing medical cannabis to the seniors’ markets in Canada through its proprietary seniors care program. It is dedicated to educating healthcare practitioners and furthering public understanding of the role that medical cannabis plays – including as it pertains to regulatory requirements, indications and potential side effects.
This press release contains forward-looking information based on current expectations. Statements about the date of trading of the Company’s common shares on the Exchange and final regulatory approvals, among others, are forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.
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