- Strong execution leads to third consecutive quarter of positive Adjusted EBITDA
- Company recorded quarterly revenues of
$6.6 million - Growing operations initiated at new Valleyfield Facility
All financial results are reported in Canadian dollars, unless otherwise stated.
First fiscal Quarter of 2022 Financial and Operational Highlights
Financial
- Posted quarterly revenues of
$6.6 million ; - Recorded a gross profit before fair value adjustments of
$3.0 million or 46%; - Achieved third consecutive quarter of positive Adjusted EBITDA (
$1.2 million ) while sustaining the start-up costs for the production ramp-up of the new Valleyfield Facility; - Decreased net loss to
$500 thousand compared to a net loss of$3.5 million in the same quarter of 2021; - Increased bank facility from
$5.4 million to$22 million and ended quarter with cash position of$14 million after reimbursement of$12 million of higher cost debt; - Increased working capital to
$18.7 million from a working capital of$12.4 million as atAugust 31, 2021 ; - Granted an aggregate total of 7,935,000 stock options to certain employees and board members at an exercise price of
$0.18 per common share, subject to certain vesting conditions.
Operational
"Following our solid year-end results, we delivered strong financial performance for the First Fiscal Quarter of 2022 resulting from our focus and execution of delivering premium-grade cannabis products to the market at competitive retail prices," commented
- New
Health Canada license to sell cannabis derivative products to retail market; - Received
Health Canada processing and cultivation license for Valleyfield Facility; - Expanded into
Ontario market with five skus listed at theOntario Cannabis Store ; - Propagated 9,600 plants in 1 of its 24 zones at the Valleyfield Facility, each measuring 25,000 square feet, which has been redesigned to replicate indoor growing conditions without utilizing sunlight;
- Subsequent to
November 30, 2021 , Cannara completed the propagation of its second zone with 9,600 plants given positive results from first zone; - Launched two new hash products within the Nugz brand in
Quebec retail stores: Old School Hash in a 3-gram bar and Ice Water Hash in a 1-gram temple ball.
Outstanding Shares
As at the date of this report, the Company had 876,481,321 common shares and 40,635,583 stock options issued and outstanding. For further information, the complete Audited Consolidated Financial Statements and Management's Discussion and Analysis for the three-month periods ended November 30, 2021 and 2020, along with additional information about the Company and all of its public filings are available at sedar.com and the Company's investor website, investors.cannara.ca.
About
Neither the
Cautionary Statement Regarding "Forward-Looking" Information
This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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1 | Gross revenue included revenue from sale of goods, net of excise taxes and lease revenues. |
2 | Gross profit before fair value adjustments % is determined as Gross profit before fair value adjustments divided by Total revenues. |
3 | Gross profit (loss) % is determined as Gross profit (loss) divided by Total revenues. |
4 | Net income (loss) % is determined as Net income (loss) divided by Total revenues. |
5 | Adjusted EBITDA, Adjusted EBITDA % and working capital are non-GAAP financial performance measures. |
6 | Working capital is determined as total current assets minus total current liabilities. |
1 | Adjusted EBITDA is a non-GAAP financial performance measure. |
SOURCE
© Canada Newswire, source