Lotus Ventures Inc., a premium and profitable cannabis producer in Canada, is pleased to announce the issuance of the Company’s Standard Processing licence. In accordance with the Cannabis Act and Cannabis Regulations, the Company is now authorized to possess, produce, and sell cannabis directly to provincial distributors in Canada. The Processing licence is in addition to the Company’s currently held Standard Cultivation and Medical Sales licences which authorize the Company to sell cannabis on a business-to-business wholesale basis or directly to registered medical patients.
“This is an exciting milestone for our shareholders and a major step forward for the Company and our consumers. We have delivered on our strategic objectives as a wholesale company by consistently producing premium cannabis profitably. Our unique Kalifornia cultivar has established a proven demand in key markets such as Ontario and Alberta, and we look forward to increasing our direct sales nationwide by offering new and exclusive products from our seed bank of over 200 high quality cultivars,” said Lotus CEO, Dale McClanaghan.
The Company plans to utilize the Processing licence to initially offer Lotus Cannabis Co.™ branded Kalifornia pre-rolls. The Company expects to launch the offering on the west coast to start, connecting our community with local products grown in B.C. The Processing licence also provides Lotus with the ability to sell additional classes of cannabis such as extracts, concentrates and edibles. The Company does not intend to offer these products in the near-term but will keep these channels open for future product launches.
KALIFORNIA SALES UPDATE
During the Company’s Third Fiscal Quarter, the Kalifornia cultivar sold in collaboration with the Company’s consumer brand Lotus Cannabis Co.™ and Kolab Project reported the following statistics:
- Kalifornia was the 5th best-selling 3.5g dried flower SKU by dollar amount on the OCS.2
- Kalifornia was the 11th best-selling dried flower SKU overall by dollar amount on the Ontario Cannabis Store.
- Kalifornia was the 10th best-selling 3.5g dried flower SKU by dollar amount in the province of Alberta.
FACILITY EXPANSION – FINANCING
Management is in discussion with an institutional lender to provide term loan financing for Lotus’ Phase 2 Expansion on the Company’s wholly owned 23-acre property near Armstrong B.C. The Company expects to receive a term sheet shortly and will announce any material information once it occurs.
FOURTH QUARTER OUTLOOK
The Company recently completed its second harvest anniversary and since that time, the team has produced 62 crops averaging 65,000 grams. As well, the Company completed its fourth fiscal quarter at the end of August. The audited Annual Financial Statements are expected to be released by the end of the calendar year, and sales and cash flow are expected to be consistent with previous quarters. The Company expects a fifth quarter reporting positive EBITDA and positive net income.
About Lotus Ventures Inc.
Lotus Ventures Inc. is a premium B.C. grown cannabis producer based in the North Okanagan, Canada. The Company leverages expertise in agriculture, construction, and real estate development with a shared goal to be a leading producer of quality cannabis. In collaboration with Kolab Project, our consumer brand Lotus Cannabis Co.’s ™ Kalifornia grown cultivar is a strong performing product in Ontario, Alberta, and B.C. The Company has established a profitable wholesale business across Canada and has its flower sold in provincial retailers and leading retail franchises in eight provinces.