- Revenue continues to accelerate. The Company generated
$1.2 million in revenue during Q2-2020, reaching$1.7 Million YTD 2020 compared to$786,901 in its full 2019 fiscal year. - Recent increase in active cultivation footprint readies
PharmaCielo to process and deliver more extracted product during the second half of 2020 and into 2021. - Production from the Company's Processing and Extraction Centre will begin accelerating during Q3-2020. The Company intends to initiate the GMP certification process during Q4-2020, which will enable it to both expand its customer base and enter new markets in 2021.
PharmaCielo made significant progress in Q2 towards enhancing and expanding its product portfolio, as well as on segmenting global markets to align commercial efforts.
All figures are in Canadian dollars ($) unless otherwise specified
Management Commentary
"Our first priority in Q2, in a challenging COVID-19 environment was to guarantee that existing important projects, related to our future biomass availability as well to our production and extraction facility stayed on track," said
Operational Update
- By the end of Q2-2020 and announced on
July 8 th, 2020 the Company received authorization from the Colombian Government to cultivate and generate 10 tonnes of high THC content biomass for the production of high-quality THC extract. This event triggers the interest of geographies where the medical regulated use of THC is very advanced and in high demand. - Various negotiation rounds with contract growers during Q2 culminated in the announcement of
August 13 th, 2020, of the activation of the Company's first external cultivation contract with a local grower, immediately expanding the Company's active cultivation footprint by 32% to 1.6 million square feet, with continued enlargement to a total of 2.6 million square feet expected, pending receipt by the contract grower of technical licensing for the additional area. - The Company has continued to make progress on developing its product pipeline with an expected Q3 introduction of a full breadth of non-psychoactive formulations ranging from concentrates (isolate, broad-spectrum oil and distillate) to a variety of standardized formulations (including water-soluble CBD emulsions as well as broad and full-spectrum diluted distillates).
- With a broader product portfolio, a review of our route to market has been initiated, aiming to confirm, adapt and aligning the Company's commercial efforts. With a solid, reliable and actual market segmentation and expected to be completed in the beginning of Q3, it is a key element on the evolution and implementation of the commercial structure and partnerships in the various geographies.
Financial Highlights – Q2-2020
- The Company generated Total Revenue of
$1.2 million compared to$514,409 in Q1-2020 and $nil in Q2-2019. - Cost of Goods Sold was
$671,768 compared to$461,235 in Q1-2020 and $nil in Q2-2019. Gross Margin excluding fair value items was$560,773 compared to$53,174 in Q1-2020 and $nil in Q2-2019. - Total Selling, General and Administrative expenses were
$7.8 million compared to$7.3 million in Q1-2020 and$8.8 million in Q2-2019. The decrease from Q2-2020 was primarily related to the inclusion of an allowance for expected credit losses in Q2-2020, lower share-based compensation, reduced office and general expenses and lower travel and accommodation expenses. - Adjusted EBITDA of (
$4.8 million ) compared to ($3.5 million ) in Q1-2020 and ($3.1 million ) in Q2-2019. - Net loss of
$7.7 million compared to$6.3 million in Q1-2020 and$10.7 million in Q2-2019. - "All-in" operating cost to produce dried cannabis of
$0.05 per gram during Q2-2020 compared to$0.04 per gram during Q1-2020. - The Company had cash and cash equivalents of
$5.1 million atJune 30, 2020 (Pro forma$9.1 million 1 atJuly 3, 2020 ) compared to$13.7 million atDecember 31, 2019 .
Summary Financials
Q2 2020 | Q1 2020 | Q2 2019 | |
Revenue | $nil | ||
Gross margin before fair value adj. | $nil | ||
Gross margin | ( | $nil | |
SG&A | |||
Adjusted EBITDA (loss) | ( | ( | ( |
Net income (loss) | ( | ( | ( |
Wt. avg. shares outstanding – basic & diluted | 104,856,355 | 99,051,447 | 96,264,358 |
Basic and diluted (loss) per common share | ( | ( | ( |
Q2 Financial Results Conference Call and Webcast
Date:
Conference ID: 11880297
Playback #: 880297 (Expires
Listen to webcast: event.on24.com
About
The board of directors and executive team of
1 | Includes |
Forward-Looking Statements:
Certain statements contained in this news release, such as those relating to processing and delivery of more extracted product during the second half of 2020 and into 2021, acceleration of production, the Company's initiation of the GMP certification process and associated expansion of customer base, entry of new markets, that the Company will be cash flow positive by the end of 2020, the Company's expansion of its portfolio, revenue growth of the Company in the back half of the year, delivery of shareholder value, becoming a solution provider for the sector, the continued enlargement of the Company's active cultivation footprint, the Company's commercial introduction of a range of products and completion of Route to Market in Q3 and the Company's plans to hold a public conference call regarding its Q2-2020 financial results contain "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including the Company's ability to obtain all necessary governmental regulatory and TSXV approval related to the exportation of
Neither the
SOURCE
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