BOGOTA, Colombia, Dec. 02, 2019 (GLOBE NEWSWIRE) -- Medcolcanna Organics Inc. (“Medcolcanna” or “the “Company”) (TSXV: MCCN) announces the filing of its financial and operating results on November 29, 2019 for the three and nine months ended September 30, 2019. All dollar values in this news release and the Company’s financial disclosures are in Canadian dollars, unless otherwise stated.
Financial Results & Balances
|($CAD dollars)||Nine months ended |
September 30, 2019
|Cash and cash equivalents||4,705,672|
|Property, plant and equipment & right-of-use assets||1,335,966|
|Cash used in operations||2,071,491|
|Net loss 1||5,606,053|
|Net loss per share, basic & diluted 1||0.09|
1) The large difference in Net Loss to Cash used in operations is due to non-cash costs incurred in the first 6 months of 2019, such as listing costs, depreciation, share-based compensation and unrealized FX loss.
Felipe de la Vega, Medcolcanna President and CEO, commented: "We are pleased to report significant progress during the Q3 financial reporting period, including completion of 2.2 hectares of commercial greenhouses and administrative areas as well as the start of our post-harvest facility. We were also able to complete construction of additional greenhouses for mother plants and cloning, which will give us an additional revenue stream supplying clones and seeds to Colombian Cultivators. I am also excited to begin our operations in Europe promoting our brand Cannav, selling cannabis vaping products.”
Mr. de la Vega continues “We continue to work towards our commercial cultivation of cannabis with the expectation of harvesting our first crop in Q4 2019. We were also able to establish a pilot extraction lab which will prepare the Company and reduce execution risk when we are able to harvest our first crop.”
Chris Reid, CFO, commented: “We were able to exit the quarter with a strong working capital balance of $4.7 million, as well as an overall reduction in our planned 2019 capex of $2.3 million due to the executed agreement with HBT as well as other costs reductions that we were able to achieve. As well, the Company has successfully created two additional revenue streams by way of 1) the excess extraction capacity that will allow the Company to provide extraction services to other Colombian cannabis cultivators, and 2) the sale of clones to cultivators that are now being cultivated within our fully-functional greenhouses and auxiliary facilities. The Company expects to commence selling clones and extraction services in the first and second quarters of 2020, respectively.”
Medcolcanna Investor Relations Contact:
Chris Reid, CFO
Carrera 49b # 93-62
Phone: +571 642-9113
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release.
Medcolcanna assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither the TSX Venture Exchange Inc. 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 and neither of these entities has in any manner passed upon the merits of the Transaction or any associated transactions.