Canada House Wellness Group reported its financial results for the three and six months ending October 31, 2020. All amounts are stated in thousands of Canadian dollars and can be found at www.sedar.com.
Financial Highlights:
- Cash position was $1,616 as at October 31, 2020 compared to $1,767 as at April 30, 2020.
- Revenue for the three and six months ending October 31, 2020 was $2,263 and $4,790, an increase of $972 and $2,209 or 75% and 86% compared to $1,291 and $2,581 for the same periods in the prior year.
- Loss and Comprehensive loss for the three and six months ending October 31, 2020 was $2,059 and $2,691 compared to $1,717 and $3,439 for the same periods in the prior year.
- Net cash used in operating activities for the six months ending October 31, 2020 was $2,688 compared to $2,810 for the same period in the prior year.
“Our diversified revenue growth from both the medical and recreational cannabis markets continued during our second quarter. We are receiving strong reviews on Abba’s product offerings from our medical patients, and their approval of our menu is clear from the growth we are experiencing in patient registrations and medical sales,” comments Chris Churchill-Smith, CEO of Canada House. “With medical sales growing at a consistent and stable rate, we have renewed our efforts in the adult-use markets in Quebec, Alberta, BC and elsewhere. Subsequent to the end of the quarter, we completed a $2 million non-dilutive debt financing to finance our recreational growth and for working capital purposes.”
Business Highlights:
- On December 24, 2020, the Company closed a $2,000 non-dilutive term loan financing at an annual interest rate of 10% (the “Loan“). The Loan is secured by the property and assets of the Company’s wholly owned subsidiary, IsoCanMed Inc. (“ICM“), in Louiseville, Quebec and is subject to monthly interest-only installments of approximately $17, with the principal amount repayable at the end of one year. The Loan may be extended for an additional year, at the discretion of the lender, upon 30 days written renewal notice by the Company. The renewal notice will indicate if the Company intends to repay any portion of the loan, up to a maximum of $1,000. A commitment fee, equal to 4% of the loan amount less the amount repaid, is payable at the time of renewal. The Loan will be used for general working capital purposes and will provide the Company with financial capacity to drive commercial initiatives during its next stage of recreational growth.
- On October 26, 2020, the Company entered into a Cannabis Products 2.0 Distribution Agreement with Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) (“Rubicon Organics“). Under the terms of the agreement, Canada House’s wholly owned subsidiary, Abba Medix Corp. (“Abba“), will distribute the Rubicon Organics line of concentrates through its established provincial distribution channels.
- On October 7, 2020, ICM processed its first purchase orders with SQDC and in-branch distribution of the ICM AirTM and ICM TerreTM brands began to all 46 current SQDC retail outlets, in addition to online sales at https://www.sqdc.ca/fr-CA/.
- On October 5, 2020, the Company launched its ICM Air™ and ICM Terre™ brands – a comprehensive suite of adult-use recreational cannabis products by ICM, in collaboration with Abba. ICM Air™ and ICM Terre™ products are packaged and distributed by Abba. The Quebec home-grown dried cannabis products are cultivated by ICM.
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 690050 NB Inc. d.b.a. Knalysis Technologies, a provider of fully customizable, cloud-based software that links physician, provider, and patient to data that supports treatment with medical cannabis.
