Top Strike Resources Corp. d.b.a. “Vencanna Ventures” provided a summary of its financial results as of April 30, 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 and twelve months ended April 30, 2021, which are available on SEDAR at www.sedar.com.
Financial Highlights
The following financial data is selected information for the Company for the eight most recently completed financial quarters:
|
Quarter ended (000’s) |
Apr |
Jan |
Oct |
Jul |
Apr |
Jan |
Oct |
Jul |
|
Revenue |
1 |
(412) |
138 |
(78) |
950 |
308 |
282 |
116 |
|
Gain (Loss) for the period |
(301) |
(663) |
(135) |
(253) |
713 |
59 |
(61) |
(206) |
|
Gain (Loss) per share |
(0.00) |
(0.00) |
(0.00) |
(0.00) |
0.00 |
0.00 |
(0.00) |
(0.00) |
|
Total assets |
10,009 |
10,464 |
10,790 |
10,873 |
9,294 |
8,671 |
8,439 |
8,468 |
|
Total liabilities |
2,088 |
2,240 |
1,901 |
1,871 |
76 |
66 |
37 |
58 |
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 April 30, 2021 91% of the Company’s assets and 100% of income was directly related to US cannabis activities.
Corporate Activity and Update
On March 12, 2021, the Company announced it had entered into a loan agreement with the Cannavative Group LLC (“Cannavative”) for US$2.0 million. Further, the Company announced that it had entered into an exclusive non-binding letter of intent with Cannavative (the “LOI”), pursuant to which the Company will acquire all 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. The proposed transaction is subject to, among other things, the execution of a definitive agreement between the Company and Cannavative (the “Definitive Agreement”), Nevada state regulatory approval, satisfactory completion of Cannavative’s audited financial statements, and customary closing conditions. The Definitive Agreement is expected to be completed in the late summer or fall of 2021.
On Oct 5, 2020, the Company re-commenced its Normal Course Issuer Bid. The Company may purchase up to 5.0% of its issued common shares for a period of up to one year from the commencement date of the bid. During the year the Company purchased 580,000 of the eligible 9,099,570 common shares at a cost of $13,080 for an average cost of $0.023 per common share. All 580,000 common shares are held in treasury until subsequently cancelled. On March 1, 2021, the Company cancelled 500,00 common shares and on May 4, 2021 the Company cancelled the remaining 80,000 common shares.
On July 3, 2020, the Company acquired a second convertible note (the “GOH Note 2”) issued by Galenas LLC. The principal sum is US$1,300,000. The GOH Note 2 carries an interest rate of 9.6% and US$10,400 is paid monthly with a maturity date of August 1, 2021. The holder can convert the note into 223 membership units of Galenas LLC which equates to an approximate 10.3% interest in Galenas LLC. As at the year ended April 30, 2021, the Company also held a US$3,300,000 convertible note issued by Galenas LLC (the “GOH Note”). With the addition of the GOH Note 2 the Company has the option to convert its Galenas debentures into an approximate 45% interest in Galenas LLC.
Concurrent and in connection with the transaction of the GOH Note 2 the Company issued a US$1,300,000 convertible debenture with a common share conversion rate of 26,000,000 common shares (the “Debenture”). The Debenture carries an interest rate of 8.0% and is accrued and payable on January 31, April 30, July 31, and October 31 of each year; interest is paid in cash, common stock, combination thereof, or accrued. The Company also holds an option to extend the maturity of the Debenture to July 3, 2024, at an interest rate of 9.6% and a common share conversion rate of 29,000,000 common shares. The Company may elect to force conversion if the Company’s VWAP equals or exceeds US$0.075 per common share.
Subsequent Transactions
Subsequent to the year ended April 30, 2021, the Company settled all obligations related to its GOH notes. On July 7, 2021, and July 30, 2021 the Company receipted approximately US$4.2 million and US$1.3 million respectively. As a result, the Company’s cash position post settlement of the GOH notes is approximately $7.3 million.
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 and acquisitions focused through-out the value chain (cultivation, processing and distribution, and including ancillary businesses).
