Kelowna, British Columbia--(Newsfile Corp. - October 15, 2020) - Citation Growth Corp. (CSE: CGRO) (OTCQX: CGOTF) ("Citation" or "Company"), a licensed multi-state Cannabis cultivator, producer and retailer, today released a letter from Erik Anderson, President and CEO, discussing the COVID-19 pandemic and recent company developments.
To our Shareholders:
I am following up on the "State of the Nation" communique that was sent out in March 2020 to highlight our progress of turning Citation Growth around towards profitability over the past two quarters.
The global pandemic brought on by Covid-19 has been challenging in the sense that typical personal interactions and business travel related to running a company essentially came to a halt in mid-March. Our Q1 (from April to June 30) was easily the most challenging period of time during my 28-year career. That said, our operations in Nevada and California were both classified as essential services; and, with protective measures to combat Covid-19 being put in place immediately, we continued to cultivate at our North Las Vegas facility (Apex) and sell products to patients and customers at our dispensary in Desert Hot Springs, Green Leaf Wellness (GLW).
Our corporate team in Canada was also extremely productive during this quarter and we were able to complete some important transitional achievements, namely:
As we moved into our Q2 (July to September 30), we continued our forward momentum by focusing on perfecting the business model for Apex and GLW. Both operations are close to cash-flow positive and our corporate team is laser focused on achieving this goal in early 2021. Other notable achievements since July 1 include the following:
Despite the tough times for business, we feel we are making all the right moves and have a great team. We have also been tracking the US Election and feel that legislative change could be on the horizon in several forms: 1) approving the Safe Banking Act (already passed in the US House of Representatives), 2) federal decriminalization (the Biden/Harris ticket is on the record in favour), 3) continued state legalization for both medical and adult recreational use (5 more states vote for legalization on November 3rd) and 4) an investor community frothing to jump into a decriminalized national industry similar to what we saw in Canada once federal legalization was announced. While our business plan does not hinge on US decriminalization, it appears that the US cannabis industry is being looked upon as a new source of revenue that will contribute to the post-Covid economic stimulus plan, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. Any forward momentum in this regard will be very positive for our business.
Since our goal is to be a premium multi-state operator governed by sound business fundamentals, I recently traveled to the US to review our operations in person. Here is an update from Nevada and California:
North Las Vegas - Apex
Desert Hot Springs - California
OVERALL State of the Nation
As I mentioned when I wrote to introduce myself in March, open communication is very important to me and I am committed to ensuring that investors, employees and the market are always aware of our activities, challenges and accomplishments. I could not be happier with our management team at head office as well as our operating teams in Nevada and California. We have substantially upgraded the talent of our workforce by targeting to hire only the best in each respective jurisdiction. I would like to thank everyone for their tireless efforts to help turn the company around, working many late nights and weekends to help push Citation forward.
As we head into the final few months of 2020, I would be happy to take your questions and/or discuss the finer details of our strategy with you at any time. Over the next few weeks, we will schedule an online Q&A session similar to the one we conducted in March. Please stay tuned for details; in the meantime, you may also email any comments or questions to [email protected] and we will respond quickly.
Erik Anderson
President & CEO
About Citation Growth Corp.
Citation Growth Corp. (CSE: CGRO) (OTCQX: CGOTF) is a publicly traded company that has been investing in the development of medical and recreational cannabis products since 2014. Citation has expanded its operating portfolio to include cultivation, production and retail offerings in our key North American legal jurisdictions Nevada, California, Washington and British Columbia. For more information, please visit www.citationgrowth.com.
For Further Information:
Erik Anderson, President and CEO
1-877-438-5448 Ext. 713
[email protected]
Cannabis Industry Involvement:
The Company owns marijuana licenses in California and Nevada. Marijuana is legal in each state; however, marijuana remains illegal under United States federal law and the approach to enforcement of U.S. federal law against marijuana is subject to change. Shareholders and investors need to be aware that federal enforcement actions could adversely affect their investments and that the Company's ability to support continuing U.S.-based operations and its access private and public capital could be materially adversely affected.
Forward-Looking Statements:
This news release contains forward-looking statements or information that relate to our current expectations and views of future events. These statements relate to future events or future performance. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as "anticipate", "objective", "may", "will", "might", "should", "could", "can", "intend", "expect", "believe", "estimate", "predict", "potential", "plan", "is designed to", "project", "continue", or similar expressions suggest future outcomes or the negative thereof or similar variations. Forward-looking statements may also include, among other things, statements about the future business strategy; expectations of obtaining licenses and permits; expectations regarding expenses, sales and operations; future customer concentration; anticipated cash needs and estimates regarding capital requirements and the need for additional financing; total processing capacity; the ability to anticipate the future needs of customers; plans for future products and enhancements of existing products; future growth strategy and growth rate; future intellectual property; changes in laws and regulations; regulatory approvals and other matters; and anticipated trends and challenges in the markets in which the Company may operate.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65968