Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced its financial results for the three and nine month periods ended July 31, 2020 ( “Q3 2020”). All figures are in Canadian dollars unless otherwise noted.
“Our third quarter revenue continued to show sequential growth however the quarter remained a transitional period for the business as we focused on ramping up our own product sales under the Purefarma and Pura Vida brands that we launched in BC and Manitoba in September”, stated Clint Sharples, Chief Executive Officer of Heritage. “This combined with new contract manufacturing agreements, the launch of our products in additional Canadian provinces, our edibles product launch, and the acquisition of Opticann to expand our U.S. presence will contribute to revenue growth going forward.”
Selected financial highlights for the three and nine month periods ended July 31, 2020 include the following:
(in $CDN) |
|
Three months
|
|
Three months
|
|
Nine months
|
|
Nine months
|
||||
|
|
July 31, 2020 |
|
July 31, 2019(1) |
|
July 31, 2020 |
|
July 31, 2019(1) |
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|
|
|
|
|
|
|
|
|
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Gross Revenue |
$ |
2,389,776 |
|
- |
$ |
7,756,320 |
|
- |
||||
Net Revenue |
$ |
2,310,050 |
|
- |
$ |
6,826,462 |
|
- |
||||
|
|
|
|
|
|
|
|
|
||||
Cost of Sales |
$ |
3,271,593 |
|
- |
$ |
6,207,921 |
|
- |
||||
Gross Margin |
$ |
(961,543) |
|
- |
$ |
618,541 |
|
- |
||||
|
|
|
|
|
|
|
|
|
||||
General and Administrative Expenses |
$ |
2,078,334 |
$ |
4,209,291 |
$ |
7,733,998 |
$ |
11,284,956 |
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|
|
|
|
|
|
|
|
|
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Net Loss |
$ |
(14,937) |
$ |
(4,241,377) |
$ |
(3,834,325) |
$ |
(13,247,116) |
(1) As the Company was not generating revenue during the three and nine months ended July 31, 2019, revenue, cost of sales and gross profit figures are nil.
Q3 2020 Financial Highlights
Q3 2020 Growth, Operational, and Corporate Highlights
Financial Statements
The interim consolidated financial statements of the Company as at and for the three and nine month periods ended July 31, 2020 and accompanying management's discussion and analysis have been filed with the securities regulators and are available on SEDAR at www.sedar.com under the Company’s issuer profile.
About Heritage Cannabis Holdings Corp.
Heritage Cannabis Holdings Corp. is a vertically integrated cannabis company that owns two Health Canada approved licenced producers, Voyage Cannabis Corp. and CannaCure Corp., both of which also have industrial hemp licenses. Additionally, Voyage recently received its sales license from Health Canada, and the Company launched its own products in the BC and MB markets in September 2020, with other provinces to follow. Working under its licenses, Heritage has two additional subsidiaries, Purefarma Solutions, that provides extraction services, and a Medical Services Division which is focused on cannabis based medical solutions. Heritage as the parent company, provides the synergies and resources for its subsidiaries to advance their medical and adult use products and services both domestically and internationally.
ON BEHALF OF THE BOARD OF DIRECTORS OF HERITAGE CANNABIS HOLDINGS CORP.
“Clint Sharples”
Clint Sharples
CEO
The Canadian Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein may include, but is not limited to, assumptions related to cash flow and capital resources, and expectations related to the supply and manufacturing agreements, the intended expansion of the Company, and partnerships and Joint Venture Partnerships.
By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements.
An investment in securities of the Company is speculative and subject to several risks including, without limitation, the risks discussed under the heading "Risks and Uncertainties" in the Company's annual management discussion and analysis for the year ended October 31, 2019 and dated February 28, 2020, as well as the interim management discussion and analysis for the quarter ended July 31, 2020 and dated September 29, 2020. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
In connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200929006141/en/
Clint Sharples
Tel: 416-705-8529
[email protected]
or
Kelly Castledine
Tel: 647-660-2560
[email protected]