Top Strike Resources Corp. d.b.a. “Vencanna Ventures” provided a summary of its financial results as of July 31, 2021. Selected financial information is outlined below and should be read in conjunction with the Corporation’s financial statements and management’s discussion and analysis for the three ended July 31, 2021, which are available on SEDAR at www.sedar.com.
Financial Highlights
The following financial data is selected information for the Corporation for the eight most recently completed financial quarters:
|
Quarter ended (000’s) |
Jul 30, |
Apr 30, |
Jan 31, |
Oct 31, |
Jul 31, |
Apr 30, |
Jan 31, |
Oct 31, |
|
Revenue |
510 |
1 |
(412) |
138 |
(78) |
950 |
308 |
282 |
|
Gain (Loss) for the period |
281 |
(301) |
(663) |
(135) |
(253) |
713 |
59 |
(61) |
|
Gain (Loss) per share |
0.00 |
(0.00) |
(0.00) |
(0.00) |
(0.00) |
0.00 |
0.00 |
(0.00) |
|
Total assets |
10,130 |
10,009 |
10,464 |
10,790 |
10,873 |
9,294 |
8,671 |
8,439 |
|
Total liabilities |
1,718 |
2,088 |
2,240 |
1,901 |
1,871 |
76 |
66 |
37 |
As of the date hereof, a major portion of the Company’s business was derived from material ancillary involvement in US cannabis-related activities. As at July 31, 2021, 27% of the Company’s assets and 100% of income was directly related to US cannabis activities.
The Company recorded a net income of $280,657, $0.00 per common share for the three months ended July 31, 2021 as compared to a net loss of $253,263, $0.00 per share for the three months ended July 31, 2020.
Revenues for the three months ended July 31, 2021, were $509,528 (2020 – $(77,816)). Interest income was $237,351 (2020 – $116,400). The following changes in fair market value occurred in the quarter; unrealized gain on convertible debt and derivative instruments $184,334 (2020 – $10,400), realized foreign exchange gain $49,805 (2020 -$NIL) unrealized gain (loss) on foreign exchange $38,038 (2020 – $(204,616)).
Corporate Update and Recent Developments
During the month of July, the Company settled both of its GOH Notes. GOH Note 1 carrying a principal balance of US$3.3 million was settled on July 7, 2021, for net proceeds of US$4,189,993. GOH Note 2 carrying a principal balance of US$1,300,000 was subsequently settled on July 30, 2021. The combined cash proceeds upon settlement of the GOH note series totalled $6,838,699. Upon settlement of the GOH Note 1 and GOH Note 2, the Company had a cash balance of $7.37 million.
On March 12, 2021 Vencanna announced that it had entered into a one-year loan agreement with the Cannavative Group LLC (“Cannavative“) for US$2.0 million (the “Loan“). Further, the Corporation announced that it had entered into an exclusive non-binding letter of intent with Cannavative (the “LOI“), pursuant to which Vencanna will acquire all of the common shares in the capital of Cannavative in an all-share exchange through the issuance of an aggregate of 360,000,000 common shares of Vencanna (“Vencanna Shares“) at a deemed issuance price of US$0.05 per Vencanna Share (~$0.065 per Vencanna Share, the “Transaction“).
The Transaction is subject to, among other things, the execution of a definitive agreement between Vencanna and Cannavative (the “Definitive Agreement“) and customary closing conditions. As the Transaction will be deemed a “Fundamental Change” pursuant to the policies of the Canadian Securities Exchange (the “CSE“), the Transaction is also subject to the acceptance of the CSE, in addition to the shareholder approvals of Vencanna and Cannavative. The Transaction is expected to be completed in the fourth quarter of 2021. For more information on the Transaction and the Loan, see the Corporation’s press release dated March 12, 2021.
About Cannavative
Cannavative is a leading premium cannabis brand in the state of Nevada, producing a wide variety of flower and extracted products, including its award-winning infused pre-roll, the Motivator. Cannavative has deep penetration into the Nevada market as its products are sold in over 80% of the state’s dispensaries and retail outlets. Cannavative is a multi-cup winner; a gold and silver medalist at the 2020 Las Vegas Cannabis Awards, in 2019 they won the Jack Herer Cup for their vape pen, and in 2018, Leafly named them the Best Flower Products brand. Based in Reno, Nevada, they have 14,500 square feet of canopy, with the ability to significantly expand to meet their growing demand. In addition, the facility houses a 10,000-sf state-of-the-art pharmaceutical-grade extraction lab and kitchen.
About Vencanna
On September 24, 2018, the Corporation announced the completion of a recapitalization financing, the appointment of a new management team and board of directors and commencement of trading on the CSE. The transactions have transitioned the Corporation from an oil and gas issuer to a merchant capital firm, rebranded as “Vencanna Ventures”. The recapitalized Corporation aims to be a go-to capital provider for early-stage global cannabis initiatives with an emphasis on strong management operating in state compliant jurisdictions with barriers to entry. The Corporation looks to provide investors with a diversified, high-growth, cannabis investment strategy through strategic investments focused through-out the value chain (cultivation, processing and distribution, and including ancillary businesses).
