TORONTO, Nov. 30, 2017 (GLOBE NEWSWIRE) -- WeedMD Inc. (TSX-V:WMD) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical cannabis, announces its financial results for the period ended September 30, 2017.
“With the recent announcement of our transformational large-scale greenhouse expansion plan and the execution of our industry-first cannabis supply agreements with long-term care providers, WeedMD is executing on our strategic plan,” said Bruce Dawson-Scully, CEO of WeedMD. “Our scalable expansion will ensure that we have adequate supply of cannabis to meet future medical and adult-use demand.”
Keith Merker, WeedMD CFO, added, “With a strong balance sheet and fully funded 217,800 sq. ft. first phase greenhouse expansion, we are now entering into a significant stage of growth for the Company as we continue to drive shareholder value.”
Operational & Corporate Highlights:
- Announced a large-scale greenhouse expansion on November 22nd (see press release here and video here): A transformational transaction for WeedMD and among the most capital efficient expansions in the industry, WeedMD will increase its annual production from 1,500 kg to more than 21,000 kg by leasing 217,800 sq. ft. of state-of-the-art greenhouse space. The retrofit is fully funded with the Company’s current treasury and once fully retrofitted, the entire 14-acre facility will increase WeedMD’s annual production capacity to more than 50,000 kg. WeedMD has already received approval from Health Canada for a second-site expansion at the Strathroy site.
- Finalized partnership with Van der Pop to bring leading female-focused brand to Canada through branded cannabis strains on November 16th (see here): This partnership brings WeedMD further along its strategic path of targeting unique and underserved demographics of the Canadian cannabis market. As the first partnership of its kind in Canada, Van der Pop-branded strains will be available through WeedMD’s website in the coming weeks.
- Completed a $15 million bought deal financing, fully funding the Company’s 217,800 sq. ft. greenhouse expansion, on November 2nd (see here): WeedMD raised $15 million in convertible debentures to support the Company’s recently announced expansion plan.
- Signed supply agreements with three long-term care and retirement home providers on September 26th (see here): WeedMD is the first licensed producer to enter into multiple supply contracts for seniors. The three LTC and retirement home providers total nine homes with more than 1,000 beds across Canada. Additional supply agreements are in advanced stages and are expected to be secured in the near future.
- Acceleration of production, strain development, sales, and patient registration: During the quarter, WeedMD successfully continued its operational ramp up, resulting in steadily increased production with decreased associated costs per gram. In addition, the Company increased patient registrations and sales. WeedMD also further developed its extensive genetic bank and live cannabis plant offering, with several new strains available for sale this quarter.
Financial Highlights:
| For the quarter ended | Sept 30, 2017 | June 30, 2017 | ||
| ($) | ($) | |||
| Revenue | 356,479 | 235,659 | ||
| Adjusted operating loss | (926,422 | ) | (1,280,046 | ) |
| Loss per share (basic and fully diluted) | (0.01 | ) | (0.08 | ) |
| As At | Sept 30, 2017 | Dec 31, 2016 | ||
| Total Assets | 8,605,112 | 10,052,971 | ||
| Total Liabilities | 690,883 | 6,970,144 | ||
| Working Capital | 5,879,612 | 1,330,566 | ||
- WeedMD generated $356,479 of revenue in the quarter. Revenues were derived primarily from the sale of dried medical cannabis and live cannabis plants. The Company continues to build its patient base in addition to selectively providing product and live genetics to other licensed producers.
- Adjusted operating loss in the quarter was ($926,422), as compared to ($1,280,046) in the prior quarter. The decrease in adjusted operating loss can be attributed to the Company’s ongoing efforts to find efficiencies in the organization. Adjusted operating loss is a non-IFRS measure which has been implemented to remove non-cash and non-recurring expenditures to provide a better indication of ongoing performance.
- Cash of $2,746,106 at the end of the period, and current cash of $22 million. The Company now has more than $22 million cash as a result of the recent financing and ongoing exercise of warrants subsequent to the quarter end.
“WeedMD continues to build on its momentum and execute on its vision of becoming a leader in the rapidly expanding Canadian cannabis market,” said Bruce Dawson-Scully. “We look forward to providing further updates as we achieve a number of near-term milestones.”
For more information on WeedMD, access our investor presentation on our website here.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of medical cannabis under the Access to Cannabis for Medical Purposes Regulations (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. The Company is focused on providing medical cannabis to the long-term care, assisted living and senior’s markets in Canada through its specialized, comprehensive platform. 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.
Follow WeedMD On:
Facebook: https://www.facebook.com/weedmd/
LinkedIn: https://www.linkedin.com/company-beta/5020743/
Twitter: https://twitter.com/WeedMD
Instagram: https://www.instagram.com/weedmd/
For further information, please contact:
WeedMD Inc.
Keith Merker, Chief Financial Officer
Tel: 519-765-2440 Ext. 222
Email: investor@weedmd.com
For Media Inquiries:
Marianella delaBarrera
Margin Communications & Public Relations
Tel: 416-897-6644
Email: marianella@marginpr.com
To learn more, visit us at www.weedmd.com
Forward-Looking Information
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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