48North Cannabis Corp., a brand-led, vertically integrated Licensed Producer focused on manufacturing an expansive portfolio of high quality, accessibly priced products available across the country, has released its financial and operating results for the third quarter ended March 31, 2021. The Company’s financial statements and related management discussion and analysis for the period are available on the Company’s SEDAR profile at www.sedar.com and on the Company’s website at www.48nrth.com/investors.
Financial and Operating Highlights for Fiscal Q3 2021
- On May 17, 2021, the Company and Hexo Corp. (“Hexo”) entered into a definitive arrangement agreement whereby Hexo will acquire all of 48North’s issued and outstanding common shares in an all-share transaction valued at approximately $50 million on an enterprise value basis.
- Quarterly revenue of $5.2 million, representing a 94 per cent year-over-year increase over third quarter 2020 revenues of $2.6 million.
- Adjusted EBITDA1 loss for the quarter was $7.7 million compared to a loss of $6 million in Q3 2020.
- Closed on April 16, 2021 an overnight marketed public offering for total gross proceeds of approximately $5.4 million.
- The Company launched seven new SKUs during the quarter and the SKUs have experienced high-demand from both retailers and consumers.
- Ceased operations at its “Good:Farm” outdoor cultivation facility.
1 Adjusted EBITDA is a Non-IFRS financial measures. Refer to the Non-IFRS Measures section in the MD&A for the definition.
“Our strategy of putting consumers first, working hand in glove with wholesalers and retailers to commercialize our products, and investing in a leading supply chain means 48North is in a strong position for the future” said Charles Vennat, CEO of 48North. “The combination with Hexo should deliver meaningful synergies that are beneficial to our shareholders, customers, partners, and stakeholders.”
Selected Financial Information
All amounts are expressed in thousands of Canadian dollars unless where indicated
|
3-months ended March 31, 2021 |
9-months ended March 31, 2021 |
|
|
Revenue |
5,193 |
19,613 |
|
Loss |
(13,446) |
(24,463) |
|
Basic and diluted (loss) earnings per share – cents |
(0.067) |
(0.130) |
|
Total assets |
49,880 |
49,880 |
|
Total liabilities |
20,311 |
20,311 |
|
Cash and cash equivalents |
1,441 |
1,441 |
About 48North
48North Cannabis Corp. is a brand-led, consumer-centric licensed cannabis producer with an expansive portfolio of high quality, accessibly priced products available across the country. The company serves the Canadian medical and adult-use markets with its brand portfolio that includes: 48North, an innovative and high-quality cannabis brand focused on thoughtfully crafted everyday staples for passionate cannabis users; Trail Mix, an accessibly priced brand formulated with taste and aroma-first flavour profiles; Latitude, a next generation lifestyle platform and premium, natural cannabis collection focused on wellness, beauty, and beyond.
