Canada House Wellness Group Inc. reported its financial results for the three and nine months ending January 31, 2020. All amounts are stated in thousands of Canadian dollars. Additional details can be found at www.sedar.com.
Canada House also reports that the Company and its wholly owned subsidiaries, Abba Medix Corp. and Canada House Clinics Inc., are acting proactively in their response to COVID-19 and remain open for business with necessary changes to internal practices consistent with the guidelines of public health authorities. The Company continues to monitor the COVID-19 pandemic and is following government directives and best practices, including social distancing, working from home, and staying home when symptomatic, to prioritize the health and safety of its customers and employees while ensuring uninterrupted operations through the entire organization and allowing the continued service of Canada House’s valued patients, particularly military veterans.
- Cash position of $869 as at January 31, 2020 compared to $3,427 as at April 30, 2019. Subsequent to the quarter ending January 31, 2020, on March 11, 2020, the Company secured $2.7 million of new financing.
- Revenue for the three months ending January 31, 2020 was $1,342, an increase of $166 or 14% from $1,176 in the prior year and $3,923 for the nine months ending January 31, 2020, an increase of $277 or 8% compared to $3,646 for the same period in the prior year.
- General and administrative expenses decreased by $538 or 25% for the three months ending January 31, 2020, and $762 or 12% for the nine months ending January 31, 2020, to $1,626 and $5,807 respectively, compared to $2,164 and $6,569 for the same periods in the prior year.
- Loss from operations for the three months and nine months ending January 31, 2020 was ($1,448) and ($5,533) respectively, an improvement of 52% or $1,574 and 22% or $1,541 compared to ($3,022) and ($7,074) for the same periods in the prior year.
- Net loss and comprehensive loss for the three months ending January 31, 2020 was ($364) compared to loss and comprehensive loss of ($3,263) for the same period in the prior year. For the nine-month period ending January 31, 2020, net loss and comprehensive loss was ($3,803) compared to ($8,301) for the same period in the prior year.
“Our double-digit increase in revenue was from growth in both Canada House Clinics and Abba Medix Corp, as this was our first full quarter since Abba obtained its sales licence.” says Chris Churchill Smith, CEO, Canada House. “The reduction in general and administrative expenses and the much-improved loss from operations evidences our focus on cost containment and our path to profitability, with Canada House Clinics now being solidly profitable,” Mr. Churchill-Smith said, “As revenue continues to increase, we will continue to align our cost structure through disciplined cost management to grow stronger and drive profitability on a go-forward basis.”
Cannabis is considered an essential service pursuant to federal and provincial government directives in response to COVID-19. Canada House is pleased to report that the Company, Canada House Clinics, and Abba remain open for business and will continue to support their clients, partners, and most importantly, their medical patients, while following government directives and best practices to reduce the risk of COVID-19 exposure and spread during these trying and uncertain times.
In this respect, Canada House Clinics employees have suspended all travel and are working from home while clinic services will continue to be offered to existing and prospective patients via Telemedicine. All Canada House Clinics patients, including our Veterans, continue to have direct access to prescriber and education services. The Canada House Clinics team is dedicated to ensuring that clinic patients continue to receive the services and medicine necessary to meet their health and wellness needs.
Abba has provided its employees with additional personal protective gear to reduce the risk of COVID-19 exposure and spread and has deployed more rigorous cleaning and sanitization efforts at its Pickering, Ontario facility in order to safely continue the production and distribution of medical cannabis to its registered patients and recreational cannabis to its provincial distribution partners. Abba has experienced an increase in medical patient registrations, specifically veteran patient registrations, and wishes to confirm for its growing patient base that they can continue to rely on Abba’s diverse strain offering to meet their medical needs during the COVID-19 pandemic. Abba’s product offering is available for sale to registered Abba patients at www.abbamedix.com.
“The completion of our recent fundraise has significantly strengthened our balance sheet and put our Company in a strong position to see through this very challenging macroeconomic environment,” said Canada House CEO Chris Churchill-Smith. “As a medical and veteran focused Company, it is important that our employees, medical patients, partners, and clients rest assured that we are monitoring this situation closely and are taking necessary steps to protect their health while continuing operations and providing uninterrupted access to cannabis products and services.”
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; 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.