BOGOTÁ, Colombia, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Medcolcanna Organics Inc. (“Medcolcanna” or “the “Company” or “MCCN”) (TSXV: MCCN) (FRA: MO2) announces the filing of its financial and operating results for the three and six months ended June 30, 2020. All dollar values in this news release and the Company’s financial disclosures are in Canadian dollars, unless otherwise stated.
Key Developments
Financial Results & Balances
($CAD dollars) | Three months ended June 30, 2020 | Six months ended June 30, 2020 |
Cash and cash equivalents | 423,873 | 423,873 |
Working capital | 379,558 | 379,558 |
Property, plant and equipment & right-of-use assets | 2,997,985 | 2,997,985 |
Intangible assets | 1,150,811 | 1,150,811 |
Total assets | 5,949,235 | 5,949,235 |
Cash generated from (used in) operations | 194,757 | (1,246,526) |
Revenue | 1,192,920 | 1,192,920 |
Net income (loss) 1 | 18,151 | (1,467,772) |
Net loss per share, basic & diluted 1 | 0.00 | 0.02 |
1) The difference in Net income (loss) to Cash generated from (used in) operations is due to non-cash costs incurred during the six months ended June 30, 2020, such as share-based compensation, depreciation, and unrealized gain on fair value of biological assets
Management Commentary
Felipe de la Vega, Medcolcanna President and CEO, commented: "We are pleased to report further progress during the Q2 financial reporting period, including the expansion of additional hectares of commercial greenhouses, recognition of a significant amount of revenue from the sale of a working interest to Dona Blanca, a small net income for the 3 months ended June 30th, 2020, and approval for listing on the NEO.”
Chris Reid, CFO, commented: “We were able to exit the quarter with a working capital balance of $0.4 million, we also raised $2.6M subsequent to quarter end, further increasing the Company’s treasury. We are pleased that the Company was able to break even for the 3 months ended June 30, 2020, with a small net income due to the non-recuring revenue sale of a working interest to Dona Blanca. The Company also received its final approvals for commercial production of cannabis during the quarter and thus was able to begin commercial harvests and record inventory related to those harvests.
Medcolcanna Investor Relations Contact:
Chris Reid, CFO
Camila Mendoza, Marketing Director
Carrera 49b # 93-62
Bogotá, Colombia
Phone: +571 642-9113
Email: info@medcolcanna.com
Forward-Looking Statements
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.