NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Toronto, September 29, 2020 (CNW). Canada House Wellness Group (CSE: CHV) (“Canada House” or the “Company”) is pleased to report its financial results for the three months ending July 31, 2020. All amounts are stated in thousands of Canadian dollars and can be found at www.sedar.com.
• Cash position was $1,352 as at July 31, 2020 compared to $1,767 as at April 30, 2020.
• Revenue for the three months ending July 31, 2020 was $2,527, an increase of $1,237 or 96% compared to $1,290 for the same period in the prior year.
• Loss and Comprehensive loss for the three months ending July 31, 2020 was ($632) compared to ($1,722) for the same period in the prior year.
• Net cash used in operating activities for the three months ending July 31, 2020 was a deficit of ($278) during the three months ending July 31, 2020 compared to ($1,613) for the same period in the prior year.
“We are very pleased with our strong, diversified revenue growth from both the medical and recreational cannabis markets. We are first and foremost a medical, veteran based cannabis company but our early success in the recreational market positions us well for future growth, particularly as we begin to fulfill Québec orders.” comments Chris Churchill-Smith, CEO. “Subsequent to the end of the quarter, we also significantly strengthened our balance sheet through a $6.5 million investment by Archerwill Investments and the repayment of the convertible debenture to Lind Partners.”
• On May 21, 2020, the Company’s wholly owned subsidiary, Abba Medix Corp (“Abba”), introduced vape pens for immediate sale to registered medical patients, including Veterans. Abba significantly expanded its portfolio of products and formats to best manage the complex physical and psychological conditions of medical patients and experienced substantial growth in its medical patient base.
• On June 12, 2020, the Company closed the strategic acquisition of 100% of the issued and outstanding securities of IsoCanMed Inc. (“ICM”), a fully operational cannabis producer operating a 64,000 sq. ft. production facility located in Louiseville, Québec which employs state-of-the-art vertical, aeroponic production methodologies.
• On June 16, 2020, Canada House Clinics (“CHC”) provided a business update noting increased profitability while expanding from 11 to 14 clinic locations across Canada. CHC has increased revenue and effected staffing cuts, operational improvements, and reductions to its prescriber costs to increase profitability. In addition, CHC remained fully operational via telemedicine during the Covid-19 outbreak.
• On August 5, 2020, the Company closed a $6.5 million convertible debenture financing from strategic investor Archerwill Investments Inc. (“Archerwill”) and used a portion of the proceeds to pay off the Lind Partners secured convertible debenture in full.
• On August 21, 2020, ICM received its standard processing license from Health Canada for its production facility in Louiseville, Québec. This processing license is an important step in ICM’s ability to scale up production, packaging, and distribution of cannabis products from its facility.
• On August 24, 2020, Abba received its amended sales license from Health Canada allowing for the sale of cannabis oil, concentrate, topical and edible products produced from its facility in Pickering, Ontario. This license amendment allows the Company to further expand its existing product offerings to the medical and recreational consumer markets with internally produced oil, concentrate, extract, topical and edible products. Abba has entered an agreement with Organic Extraction Technologies and is currently producing solventless cannabis rosin and other full spectrum concentrates at its facility while continuing to work closely with CHC to expand its portfolio of products to best manage the complex physical and psychological conditions of CHC’s medical patient base.
• On September 2, 2020, Abba received authorization from the Autorité Marchés Publics to contract or subcontract with public bodies in the Province of Québec. The authorization is valid for three years in accordance with the Loi sur les contrats des organismes publics (LCOP), RLRQ, c. C-65.1. Abba and ICM have submitted all required documentation to initiate the product listing process for the Québec adult use market in order to distribute ICM’s home grown products in Québec under the terms of ICM’s existing Letter of Intent for potential supply of 3,000 kg of cannabis product.
About Canada House Wellness Group Inc.
Canada House Wellness Group Inc. is the parent company of Abba Medix Corp., a Licensed Producer in Pickering, Ontario that produces high quality medical grade cannabis; IsoCanMed Inc., a Licensed Producer in Louiseville, Quebec growing best-in-class indoor cannabis, in its 64,000 sq.ft. production facility employing state-of-the-art vertical, aeroponic production methodologies; Canada House Clinics Inc., with clinics across the country that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloud-based software that links physician, provider, and patient to data that supports treatment with medical cannabis.
Canada House Wellness Group’s goal is to become the leading cultivator of premium craft cannabis and provider of cannabinoid therapy, targeting the medical cannabis markets globally. Please visit www.canadahouse.ca or the Company’s public filings at www.sedar.com.
For further information, please contact:
Steven Pearce, Vice-President, Legal
Canada House Wellness Group Inc. 289-980-3584
Cautionary Statement Regarding Forward-Looking Information. This press release contains forward- looking statements, including statements that relate to, among other things, the Company’s clinic, production and technology businesses, its future plans, the Company’s markets, objectives, goals, strategies, intentions, beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective” and “continue” (or the negative thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking information in this news release include, among other things, the regulations related to cannabis use under the Access to Cannabis for Medical Purposes Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal Code and other Acts, passed by the Canadian Federal government, making cannabis and cannabis based edibles, vapes and oils legal for recreational use on October 17, 2018 and October 17, 2019; Company liquidity and capital resources, including the availability of additional capital resources to fund its activities; level of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key executives; and the ability to execute strategic plans. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.