48North Cannabis Corp. Announces Financial and Operating Results for 2019 Fiscal Year
TORONTO -- 48North Cannabis Corp. ("48North" or the "Company") (TSXV: NRTH), a leading licensed cannabis producer focused on next-generation cannabis products, low-cost cultivation and brand, has released its financial and operating results for the fiscal year ended June 30, 2019.
"The past 12-months have been foundational for 48North, the year was spent successfully laying the building blocks for what will result in a leading consumer-focused Canadian cannabis company focused on the development of next-generation cannabis products made possible and reinforced by low-cost cultivation and beloved brands," said Alison Gordon, CEO of 48North.
"Currently, at Good:Farm, 48North is harvesting approximately 200,000 cannabis plants, with some of the harvest being earmarked for the provincial distributors as dried flower, and the remainder being processed for extraction destined for next-generation cannabis products, 48North expects to start showing significant revenues from its outdoor cultivation in upcoming quarters."
Financial and Operating Highlights for Full Year Fiscal 2019:
- Net revenue of $4,820,000, marking 48North's first full year of revenue.
- Inventory increased from $2,481,000 at March 30, 2019 to $4,730,000 at June 30, 2019 as the Company positions for next-generation products available for retail sale in 2020.
- Acquisition of Good & Green Cannabis Corp, bringing additional production facilities and outdoor cultivation opportunities on its 100 acre farm.
- In fiscal 2019, the Company raised over $48 million and at the end of the year had $52.7 million in cash and cash equivalents on hand. As a result, 48North believes it is well capitalized to execute on its business plan.
- 48North delivered on all of the commitments it set out for itself, including:
- receiving its outdoor cultivation license from Health Canada for Good:Farm
- successfully capitalizing the Company;
- building out a state-of-the-art cannabis extraction facility at Good:House with the capacity to process all of the cannabis harvest at Good:Farm;
- entered the adult-use recreational cannabis market with supply agreements in three of Canada's largest provinces;
- made strategic retail investments;
- and expanded meaningfully into the United States through the acquisition of Quill and procurement of significant supply of CBD oil.
Selected Financial Information for Fiscal 2019
All amounts are expressed in Canadian dollars
48North has granted an aggregate of 100,000 restricted share units ("RSU") to certain directors, officers, and employees of the Company. Each RSU is exercisable into one common share for a period of up to three years from the date of grant. All of the RSU's have been granted pursuant to the Company's Restricted Share Unit Plan which has been previously approved by the Company's shareholders and the TSX Venture Exchange.
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 that is expected to produce more than 40,000 kg of organic, sun-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. 48North has a growing portfolio of brands that include Latitude, a women's cannabis platform (explorelatitude.com); Mother & Clone, a rapid-acting sublingual cannabis nanospray (momandclone.com); Avitas, a single-strain vaporizer cartridge (avitasgrown.com) and Quill, a leader in the manufacturing of beautifully designed, lifestyle-focused and sleek vape products (quill.me).
DISCLAIMER & READER ADVISORY
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept 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.