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TORONTO, Aug. 29, 2023 (GLOBE NEWSWIRE) -- Hempsana Holdings Ltd. (the “Company” or “Hempsana”) today announced financial results for the three and six months period ended June 30, 2023.
Randy Ko, Hempsana’s CEO commented: “The investments we have made in our brands and brand partners to offer innovative products to the consumers is starting to bear fruit as we have seen significant revenue growth this quarter as seen in our results where we have increased our Q2 results from last year’s Q2 results by more than 50%. With over 20 SKUs being distributed across the nation, we will look to focus on increasing the market share of these products within their respective categories. We are also very excited about our new strategic investors who have been instrumental in providing expertise and experience in upgrading our filtration and distillation technologies. The confidence that they exude in our path to profitability is exemplified in their recent execution of five million warrants above market the current common share price of $0.05.”
Operational Highlights:
New Unique and Innovative Products
The Company commercialized the production of the following new products in the second quarter:
- Social Lite Cannabis:
- Vibing Disposable Pen
- Chilling Disposable Pen
- Ufeelu:
- Relief Drops
- The Feel Stick
Financial Highlights
- Net revenues were $422,170 for the three months ended June 30, 2023, a 53.9% increase over Q2 2022’s net revenue of $274,361. This also represents a 16.0% quarter over quarter increase over Q1 2023’s net revenues of $363,831. The higher revenues were driven by the Company’s contract manufacturing business with the launch of seven new products so far in 2023.
- Net revenues were $786,001 for the six months ended June 30, 2023. This was 25% higher than the net revenues for the six months ended June 30, 2022 of $629,216.
- Gross profit was $105,130 and gross margins were 24.9% for the three months ended June 30, 2023, and $288,041 and 36.6% for the six months ended June 30, 2023.
- Gross margins improved in Q2 and six months year to date 2023 over Q2 and six months year to date 2022 as the Company used more directly purchased input materials and relied less on input materials under a revenue sharing arrangements.
- Net loss and comprehensive loss were ($477,343) in Q2 2023 compared to a net loss of ($536,197) in Q2 2022. The lower net loss was mainly due to higher revenues.
- Net loss and comprehensive loss were ($753,858) for the six months ending June 30, 2023 compared to a net loss of ($778,572) for the six months ending June 30, 2022.
- Net loss per share was $(0.01) in Q2 2023, compared to $(0.02) in Q2 2022.
- Net loss per share was $(0.03) for the six months ending June 30, 2023, compared to $(0.03) for the six months ending June 30, 2022.
About Hempsana Holdings Ltd.
The Company’s business involves the manufacturing of cannabis derivatives and producing cannabis extracts for use in finished products, including vapeables, topical creams and infused consumables. Hempsana’s Health Canada Standard Processing Licensed, and EU-GMP compliant facility provides the Company with access to wholesale and retail channels in Canada and internationally.
Additional Information
For additional information regarding Hempsana, please contact:
Randy Ko
Director and Chief Executive Officer
T: (647) 255-8849
E: randy@hempsana.ca
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian and U.S. 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 information or statements. More particularly and without limitation, this press release contains forward looking statements and information concerning the business and operations of the Company. The forward-looking statements and information are based on certain key expectations and assumptions made by management, including expectations and assumptions concerning the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information. There can be no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, general economic conditions and the state of the regulatory environment. Please refer to the Company’s public record on SEDAR at www.sedar.com for more details on the risks faced by the Company. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward- looking information for anything other than its intended purpose. Management of the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
