CanadaBis Capital Inc. Provides Annual Corporate Update

Published: December 8, 2020

CanadaBis Capital Inc. Provides Annual Corporate Update

CANADABIS CAPITAL, (STIGMA GROW), (INDICAtive Collection), a National pioneer in cannabis concentrate production, research, cultivation and distribution, reports financial results for the fourth quarter and full fiscal year ended July 31, 2020. All financial information in this press release is reported in CAD dollars, unless otherwise indicated.

Revenue Increased exponentially to $4,428,831 Million in Full Fiscal Year 2020 Compared to the Prior Year

Revenue Increased by 535% in the Fourth Quarter Compared to Q3 with a Dramatic increase over Q1 2019 with Sequential Quarterly Revenue Growth

Signed and Closed 95% of the outstanding shares of Goldstream Cannabis Inc., which holds the rights to access 13 acres of land on Vancouver Island, BC, which is zoned and ideal for outdoor /Greenhouse cannabis production to provide consistent, cost effective inputs for extraction, in addition to $2,000,000 cash. The transaction was valued at $3.5 million.

The Company opened its flagship cannabis retail store, operating as “INDICAtive Collection”, serving customers in Alberta.

The Company was granted its amendment by Health Canada to its existing license to include sales of Cannabis products on March 6, 2020, through its wholly owned subsidiary 1998643 Alberta Ltd. (o/a Stigma Grow). This license from Health Canada allows the company to sell cannabis that is cultivated at its 66,000 sq. ft. facility.

“Our full year results show exceptional company growth and the hitting of all targets laid out in 2019, with fourth quarter results indicative of sales growth momentum expected to continue for the remainder of 2020 and into 2021,” said Travis McIntyre, CEO, CanadaBis. “We have faced both industry and COVID challenges this year, but we remain committed to increasing revenues and cash flows to steadily increase value for our shareholders. We are extremely proud of all of our in-house team for the great deal of work put in to launching multiple FIRST-TO-MARKET SKUs.

Entering 2021, CanadaBis Capital boasts a diversified business model comprised of Cultivation, Contract Manufacturing and Retail, as well as Stigma-branded concentrate products currently sold in five provinces. This positions us very well in the current 3.0 market environment. We are still in the early days of this emerging 3.0 industry and will continue being good stewards of shareholder capital as we aim to build the country’s most trusted and valued 3.0 cannabis company.”

2020 Company Highlights

  • Increase of $4,428,831 in revenue as compared to the prior year, with large portion of the sales occurring in 2020 Q4. Growth in revenues resulted from the launch of several products across multiple provinces as well as contract manufacturing fees;

  • On August 13, 2019, the Company acquired 95% of the outstanding shares of Goldstream Cannabis Inc., which holds the rights to access 13 acres of land on Vancouver Island, BC, which is already zoned for cannabis production, in addition to $2,000,000 cash. The transaction was valued at $3.5 million with consideration consisting of 11,666,666 common shares of CanadaBis at $0.30 per share;

  • On October 5, 2019, the Company opened its flagship cannabis retail store in Red Deer Alberta, operating as “INIDICAtive Collection”, serving customers throughout Central Alberta;

  • The Company was granted its amendment by Health Canada to its existing license to include sales of Cannabis products on March 6, 2020, through its wholly owned subsidiary 1998643 Alberta Ltd. (o/a Stigma Grow). This license from Health Canada allows the company to sell cannabis that is cultivated at its 66,000 sq. ft. facility;

  • On April 19, 2020, the Company oversaw the first shipment of 6000+ packages of multiple SKUs of concentrates;

  • On July 31, 2020, the Company completed a non-brokered private placement of 8,295,996 voting common shares for proceeds of $1,244,399, or $0.15 per voting common share;

  • The Company continues to develop the facility and processing areas to triple the existing cultivation space and double the processing capacity. The expansion work is expected to be completed in 2021 Q2; and

  • The Company through its wholly owned subsidiary 1998643 Alberta Ltd. (o/a Stigma Grow) secured sales channels for its concentrates and flowers in the provinces of AlbertaBritish ColumbiaSaskatchewanOntarioNova Scotia, and New Brunswick, with other provinces to follow.

2020 Financial Highlights

2020

2019

Revenue, net of taxes

$

4,428,831

$

Cost of sales

2,920,730

Gross profit excluding fair value items

1,508,101

Gross profit (loss)

1,156,685

(46,776)

Fund flow (1)

(2,471,551)

(1,472,402)

Net loss and comprehensive loss

(5,391,080)

(9,002,860)

Income per share (basic and diluted) 

$

(0.04)

$

(0.05)

(1)  Non-GAAP measure. See “Non-GAAP Measures”

Fourth Quarter 2019 Financial Highlights

Revenue increased 535% to $4,428,831 million compared to the third quarter of this year, driven by the launch of 3.0 BHO products into the market. These products were not presented by any other LP in Canada and represent a large portion of sales in mature markets such as CaliforniaOregon and Colorado. “We believe that the future of cannabis is in the 3.0 marketplace and we are currently leading the charge in Canada“, says Travis McIntyre, CEO CanadaBis Capital Inc.

Select Quarterly Financial Information

2020 Q4

2020 Q3

2020 Q2

2020 Q1

2019 Q4

2019 Q3

2019 Q2

2019 Q1

Revenue, net of taxes

$

3,581,720

$

563,595

$

230,807

$

52,709

$

$

$

$

Cost of sales

2,309,563

404,288

171,752

35,126

Gross profit excluding fair value items

1,272,157

159,307

59,055

17,583

Gross profit (loss)

1,210,366

116,998

(138,803)

(31,876)

(1) Non-GAAP measure. See “Non-GAAP Measures”

CANADABIS CAPITAL INC (TSXV: CANB) is a National pioneer in cannabis concentrate production, research, cultivation and distribution, leading the charge to bring in demand 3.0 BHO products to market across Canada.

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