VANCOUVER, British Columbia, April 29, 2021 (GLOBE NEWSWIRE) -- Lotus Ventures Inc. (CSE:J) (OTC:LTTSF) (FRA:LV9) (“Lotus”, or the “Company”, or “Lotus Cannabis”) is pleased to announce the results for the Second Quarter of the Fiscal Year 2021. The Company recorded the following highlights:
KEY FINANCIAL HIGHLIGHTS OF THE SECOND QUARTER OF 2021
- Net revenue of $1.4 million for the three-month period in Q2 2021 compared to $1.1 million in Q2 2020.
- Gross margin before fair value adjustments of $690,000, or 48% of net revenue for the three-month period in Q2 2021 compared to $742,000, or 69% of net revenue in Q2 2020.
- Average wholesale selling price per gram of $2.84 for large flower in Q2 2021. The selling price is a result of blended sales between Auxly Cannabis and to other licensed producers.
- All-in cost of production was $1.47 per gram in Q2 2021 compared to $1.20 per gram in Q2 2020. The increase in production cost is a result of the Company producing at full capacity.
- Operating expenses of $370,000 for the three-month period in Q2 2021 compared to $403,000 in Q2 2020.
- Net income of $329,000 for the three-month period in Q2 2021 or 23% of net revenue compared to a net loss of $335,888 in Q2 2020.
KEY OPERATING HIGHLIGHTS OF THE SECOND QUARTER OF 2021
- Cost of sales was a result of selling approximately 503,000 grams in Q2 2021 compared to 283,000 grams in Q2 2020.
- The Kalifornia strain grown by Lotus was the 7th best-selling 3.5-gram flower SKU by dollar amount in Ontario during the 12-week period ending March 31, 2021.
- The Kalifornia was the 6th best-selling 3.5-gram flower SKU by dollar amount in New Brunswick during the 12-week period ending March 31, 2021.
- The Kalifornia was the 2nd best-selling 3.5-gram flower SKU in the Canna Cabana national retail network in December 2020.
- The Kalifornia continues to consistently test with greater than 22% THC reaching up to 28% and with up to 4.5% in terpene content.
KEY SUBSEQUENT EVENTS OF THE SECOND QUARTER OF 2021
- The Kalifornia is currently listed in the following provinces: British Columbia, Alberta, Saskatchewan, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland through a combination of private and provincial retail stores.
- The Kolab Project Kalifornia grown by Lotus Cannabis was selected by the Ontario Cannabis Store as a “Top 100 Listing” that is expected to consistently be in stock. The Kalifornia is also considered a “customer favourite” and was included on two new OCS pages – “Always Available” and “Peak THC”.
- In the second week of April 2021, the Kalifornia strain had its highest weekly sales volume by units in Ontario by approximately 2.75x the average weekly unit sales.
RESULTS OF OPERATIONS
Selected Quarterly Financial Data (unaudited)
The financial results of the Company for the five most recent quarters are summarized below, and the Company started recording revenue in the three months ending February 29, 2020:
| Description | Three months ended Feb 28, 2021 | Three months ended Nov 30, 2020 | Three months ended Aug 31, 2020 | Three months ended May 31, 2020 | Three months ended Feb 29, 2020 | ||||
| Revenues | $1,431,509 | $1,376,270 | $1,782,613 | $1,775,878 | $1,071,252 | ||||
| Cost of Goods Sold | $(741,533) | $(616,880) | $(683,159) | $(807,079) | $(329,348) | ||||
| Gross Margin | $698,919 | $848,566 | $663,831 | $1,671,649 | $66,843 | ||||
| Net Income (Loss) | $329,414 | $(339,835) | $(231,443) | $1,231,779 | ($335,888) | ||||
| Net Income (Loss) per Share, Basic and Diluted | $0.00 | $0.00 | $0.00 | $0.01 | $0.00 | ||||
| Total Assets | $16,841,875 | $16,413,969 | $16,908,437 | $17,245,515 | $16,541,664 | ||||
| Total Long-Term Liabilities | $Nil | $Nil | $Nil | $Nil | $Nil | ||||
| Cash Dividends / Share | $Nil | $Nil | $Nil | $Nil | $Nil | ||||
“This quarter we ramped up our Kalifornia sales with Kolab Project in new and existing markets across Canada. Ontario, where the bulk of our sales are, as well as other provinces, are seeing a shift in demand to premium products, and smaller companies have begun to take market share. Positioned around a quality product, we are confident our next strain offerings will exceed our Kalifornia and we’re looking forward to introducing new genetics to the market,” said Dale McClanaghan, Lotus CEO.
OUTLOOK FOR 2021
Lotus is now operating at full production and the Kalifornia sales are continuing to improve across Canada. The production team has averaged approximately 65,000 grams of premium Kalifornia cannabis per harvest every two weeks, and the sales process has stabilized reducing risk for potential expansion lenders. The Company is expecting to lab-test several new strains over the coming months to determine which are the best to bring to market, and the Company will keep shareholders informed of any material information if it occurs.
The Financial Statements and Management Discussion and Analysis for the period are available on SEDAR or on the Investor page of the Company’s website at https://lotuscannabis.ca/investors.
ON BEHALF OF THE BOARD:
Lotus Ventures Inc.
"Dale McClanaghan"
Dale McClanaghan, President and CEO
About Lotus Ventures Inc.
Lotus Ventures Inc. is the publicly traded licensed producer and owner of Lotus Cannabis, a premium-craft cannabis brand in Canada. Situated on 23 acres in BC’s North Okanagan region, Lotus created a scalable, purpose-built facility designed for the low-cost of production of high-quality cannabis.
Lotus is listed on the Canadian Securities Exchange under the symbol “J”, on the OTC Markets under the symbol “LTTSF” and on the Frankfurt Stock Exchange under the symbol “LV9”.
For More Information:
President & CEO
Dale McClanaghan
dalemcclanaghan@gmail.com
604-644-9844
Investor Relations
Daniel McRobert
investors@lotuscannabis.ca
604-842-4625
To learn more, visit lotuscannabis.ca or follow the Lotus brand on social media.
Twitter: @lotuscannabisco , LinkedIn: @lotuscannabisco , Instagram: @lotuscannabisco
Facebook: @lotuscanna
Forward Looking Information:
The information contained within this news release has been prepared by Lotus Ventures Inc. This document includes certain statements that are not descriptions of historical facts but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for medical and recreational cannabis products, our expectations regarding the continued growth of the medical and recreational cannabis market, as well as all assumptions, expectations, predictions, intentions, or beliefs about future events. Users are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties have not been documented or mentioned in this document nor other communications made by the company. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.