KITCHENER, Ontario, Feb. 25, 2019 (GLOBE NEWSWIRE) -- James E. Wagner Cultivation Corporation (“JWC” or the “Company”) (TSX VENTURE: JWCA), announced today the achievements, unaudited financial and operational results, for the first quarter of fiscal 2019 ended December 31, 2018 (“Q1 2019”). The Company is pleased to report that its interim financial statements and management’s discussion and analysis for the quarter ended December 31, 2018, are available on SEDAR at www.sedar.com. All amounts expressed are in Canadian dollar unless otherwise noted.
Nathan Woodworth, President and Chief Executive Officer, stated, “The first quarter of 2019 saw marked improvements in several operational capacities at JWC. Additional staff were added to ensure training is completed before the move to JWC 2. The pilot facility was in full production for the quarter, following the upgrade of the HVAC system to a new highly advanced more customized solution. This allowed for a rapid increase in yields. For the quarter JWC produced a variety of strains at an average yield per plant of 210 grams. Very low crop loss numbers were recorded, at less than 1% of flowering plants. A new product was introduced to our online store front to overwhelmingly positive reviews, and 4 new products were prepared for active production in the following quarter. JWC is excited about the coming months as we take these advancements and begin to scale up in to our second facility, JWC 2.”
Selected Summary of Q1 2019 Results:
| December 31, 2018 ($) | September 30, 2018 ($) | % change | |
| Cash and cash equivalents | 2,918,405 | 8,504,790 | (66)% |
| Short Term Investments | 6,048,493 | 6,017,153 | 1% |
| Agricultural produce and biological assets | 2,897,047 | 2,607,433 | 11% |
| Other working capital | 1,425,538 | 483,917 | 195% |
| Non-current assets | 11,851,782 | 5,475,701 | 116% |
| Long-term debt | 1,127,018 | 922,513 | 22% |
| Shareholder’s equity | 17,342,103 | 19,639,467 | (12)% |
| Q1 2019 ($) | Q1 2018 ($) | % change | |
| Operating revenue | 549,995 | - | NA |
| Other revenues | 50,644 | 4,950 | 923% |
| Operating expenses | 2,386,812 | 1,409,915 | (69)% |
| Loss from operations | (2,375,936) | (1,364,028) | (75)% |
| Net and comprehensive loss | (2,325,292) | (1,469,078) | (58)% |
| Net and comprehensive loss per share | 0.03 | 0.02 | (21)% |
For the three months ending December 31, 2018, the Company’s net and comprehensive loss was $2,325,292 (as compared with $1,469,078 in the first quarter of fiscal 2018).
The Company finished the quarter with approximately 172 kg of dried cannabis, and 14 litres of formulated cannabis oil in its storage vault. During Q1 2019, JWC focused on preparing to move into its second, largescale facility, while beginning to ramp up sales both direct to patient and through the Canopy Growth Corporation’s CraftGrow store. Revenues were up from Q1 2018 by more than 12,000%, and up from Q4 2018 ($170,665) by more than 250%.
Work continues at the Manitou Drive facility (“JWC 2”). Construction has continued on phase 2, and phase 1 is ready to begin cultivation activities as soon as a licence is granted by Health Canada. JWC continues to work with Health Canada and has received a Confirmation of Readiness for JWC 2, one of the last hurdles before receiving a licence to cultivate. Phase 2 is expected to be completed and ready for cultivation during Q3. Once the second phase comes online, JWC will have the capacity to increase production by more than 400% from the end of calendar 2018.
About James E. Wagner Cultivation Corporation
JWC’s wholly-owned subsidiary is a Licensed Producer under the Cannabis Regulations ( “C45Reg”), formerly the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). JWC is a premium cannabis brand, focusing on producing clean, consistent cannabis. JWC uses an advanced, proprietary Dual Droplet aeroponic platform named GrowthSTORM™. JWC was founded as a family company and is based on family values. JWC began as a collective of patients and growers under the Marihuana Medical Access Regulations (the precursor to ACMPR). Since its inception, JWC has remained focused on providing the best possible patient experience. JWC’s operations are based in Kitchener, Ontario. Learn more at www.jwc.ca
For additional information about JWC, please refer to JWC’s profile on SEDAR (www.sedar.com) or the Company’s website: https://www.jwcmed.com/home.html
Notice regarding forward-looking statements:
This press release contains statements including forward-looking information for purposes of applicable securities laws (“forward-looking statements”) about JWC and its business and operations which include, among other things, statements regarding JWC and any information with respect to the potential growth of the Company and increasing production capacity at its facilities and the proposed shipment of its products and the benefits of the arrangements entered into with customers and partners. The forward-looking information contained in this news release are based on JWC’s current internal expectations, estimates, projections, assumptions, and beliefs and views of future events which management believes to be reasonable in the circumstances, including expectations and assumptions regarding: general economic conditions, the expected timing and cost of expanding the Company’s production capacity, the internal opportunities, the development of new products and product formats, the Company’s ability to retain key personnel, the Company’s ability to continue investing in its infrastructure to support growth, the impact of competition, trends in the Canadian medical cannabis industry and changes in laws, rules, and events, performance or results, and will not necessarily be accurate indications as to whether, or the times at which, such events, performance or results will occur or be achieved. The forward-looking statements can be identified by the use of such words as “anticipated”, “will”, “expected”, “approximately”, “may”, “could”, “would” or similar words and phrases. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those implied in the forward-looking statements. For example, risks include risks regarding the cannabis industry, economic factors, the equity markets generally, funding and grant related risks and risks associated with growth and competition as well as the risks identified in the Company’s Filing Statement available under the Company’s profile at www.sedar.com. Although JWC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are based on current assumptions which management believes to be reasonable. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information about this release, please contact:
Nathan Woodworth, the President and Chief Executive Officer
Email: nathan@jwcmed.com
Phone: (519) 594-0144 x421
George Aizpurua, Vice President of First Canadian Capital Corp.
Email: gaizpurua@firstcanadiancapital.com
Phone: (416) 742-5600