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Montréal, Québec – August 30, 2021 (CNW) – Canada House Wellness Group Inc. (CSE: CHV) (“Canada House” or the “Company”) is pleased to report its financial results for the year ending April 30, 2021. All amounts are stated in thousands of Canadian dollars. Complete details may be found at www.sedar.com.
Compared to the 12 months ending April 30, 2020:
• Revenue was $10,560, an increase of $5,250 or 99%, compared to $5,310 during the same period in the prior year.
• Cash flow used in operating activities was $3,355, a decrease of $1,924 or 36%, compared to $5,279 during the same period in 2020.
• Net cash provided by financing activities was $4,087 compared to $4,366 during the same period in 2020.
• Loss and Comprehensive Loss for the year was $11,365, an increase of $1,845 or 19% compared to a loss of $9,520 during the same period in 2020.
Loss and Comprehensive Loss for the year ended April 30, 2021 included a one-time inventory impairment of $2,266
• Shareholder’s equity was a surplus of $6,873 compared to $5,074 as of April 30, 2020.
Comparison of three months ending April 30, 2021, and April 30, 2020:
• Revenue of $2,898, an increase of $1,511 or 109%, compared to $1,387 in the same quarter of last year.
• Loss and Comprehensive Loss of $6,156, an increase of $439 or 8%, compared to $5,717 in the same quarter of last year.
Loss and Comprehensive Loss for the three months ended April 30, 2021, included the one-time inventory impairment of $1,834.
Subsequent to April 30, 2021, Canada House completed the acquisition of Margaree Health Group Inc. (“Margaree”), a medical cannabis clinic dedicated to veterans in the Province of Nova Scotia. The purchase consideration included cash consideration of $500 and an earn out measured against Margaree’s revenue over a three-year period.
Also subsequent to the year ending April 30, 2021, the Company announced that they have entered into a definitive share exchange agreement for the Company’s acquisition of all of the issued and outstanding shares of Montréal Cannabis Medical Inc. (“Montreal Cannabis”) (herein referred to as the “Transaction”). The Transaction is considered an arm’s length transaction and will constitute a “reverse takeover” of the Company by Montreal Cannabis as it is anticipated that the Company’s shareholders will account for approximately 20% of the combined company post-closing. Should the Transaction be completed, it is anticipated that the Company will operate under the Montreal Cannabis corporate name with shares continuing to trade on the Canadian Securities Exchange under a related ticker. “Fiscal Year 2021 was a transformative year for Canada House. We completed the IsoCanMed acquisition, we launched our locally grown products in the Quebec adult use market, and we established a significant and meaningful presence in the veteran focused medical market as evidenced by our near 100% revenue growth on a year over year basis,” commented Chris Churchill-Smith, CEO of Canada House. “We look forward to continued successes and industry changing results as we look to complete and integrate the MTL Cannabis acquisition and show that Canadian Cannabis companies can be profitable.”
About Canada House Wellness Group
Canada House Wellness Group 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, Québec 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
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.
The CSE has in no way passed upon the merits of the transactions contemplated in the Agreement (including the Transaction) and has neither approved nor disapproved the contents of this news release. 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.