NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ALL FIGURES IN CANADIAN DOLLARS UNLESS OTHERWISE SPECIFIED.
LOS ANGELES, June 30, 2020 (GLOBE NEWSWIRE) -- Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis”, “VCAN”, or the “Company”) today posted its audited financial statements and accompanying management discussion & analysis for the year ending February 29, 2020. The financial statements and accompanying documentation are available at www.sedar.com.
In addition to the release of financial statements, the Company provided highlights of its cannabis assets:
In California:
Ventura holds a Type 6 manufacturing cannabis license for adult and medical use located in the San Francisco Bay Area with an open plan 700 square foot facility.
It holds a state-wide Type 11 distribution cannabis license for adult and medical use and is the majority owner of a delivery only adult-use dispensary license in Sacramento.
It has developed an initial vape brand and has a limited inventory order in place. All of these California assets have tremendous revenue potential when fully operational.
In Oregon, Ventura has a strong revenue generating, luxury retail dispensary for adult and medical use located in a high traffic section of Portland, Oregon.
It also has an opportunity to acquire a processing and wholesale license that is in final stages of transfer.
“I am proud of the Ventura team for building out a suite of cannabis assets in a short period of time in a challenging market,” said Chris Heath, CEO of Ventura Cannabis. “Despite the industry challenges facing us over the past year, our team has developed solid revenue-generating cannabis assets in California and Oregon, as well as a strong balance sheet with no debt. We plan to use our remaining cash to sustain these assets and look for strategic opportunities until the capital market interest returns for our type of assets.”
As of February 29, 2020, the Company’s fiscal year end, Ventura had generated substantial cannabis revenues despite only beginning to invest in cannabis revenues after the shareholder vote in April 2019. Cash as of February 29, 2020 was $3.9M with accounts payables being reduced in the fourth quarter by over $1.7M, leaving a payable balance at year end of $2.5M.
“As we approach the finalization of the disposition of the rehab business, we have seen a significant reduction in our accounts payable, and a resulting drop in cash,” continued Mr. Heath. “The COVID-19 pandemic has unfortunately slowed down the divestment process and we expect more payables to be resolved in the current quarter, but thankfully we are close to completion and expect to be able to proceed solely as a cannabis company soon.”
Moving forward as a dedicated cannabis company we do not anticipate additional material impacts from the COVID-19 global pandemic.
For more information contact:
Ventura Cannabis and Wellness Corp.
Chris Heath
CEO
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com
Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of June 30, 2020, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations.