Top Strike Resources Corp. d.b.a. “Vencanna Ventures” provided a summary of its financial results as of January 31, 2022. 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 nine months ended January 31, 2022, 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) |
Jan 31, |
Oct 31, |
Jul 30, |
Apr 30, |
Jan 31, |
Oct 31, |
Jul 31, |
Apr 30, |
|
Revenue |
154 |
294 |
510 |
1 |
(412) |
138 |
(78) |
950 |
|
Income (Loss) for the period |
(124) |
(290) |
281 |
(301) |
(663) |
(135) |
(253) |
713 |
|
Income (Loss) per share |
(0.00) |
(0.00) |
0.00 |
(0.00) |
(0.00) |
(0.00) |
(0.00) |
0.00 |
|
Total assets |
9,801 |
9,957 |
10,130 |
10,009 |
10,464 |
10,790 |
10,873 |
9,294 |
|
Total liabilities |
1,712 |
1,741 |
1,718 |
2,088 |
2,240 |
1,901 |
1,871 |
76 |
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 January 31, 2022, 30% of the Company’s assets and 100% of income was directly related to US cannabis activities.
The Company recorded a net loss of $(124,045), $0.00 per common share for the three months ended January 31, 2022 as compared to a net loss of $(663,014), $0.00 per share for the three months ended January 31, 2022.
Revenues for the three months ended January 31, 2022, were $151,270 (2021 – $(411,419)). Interest income was $124,833 (2020 – $142,842). The following changes in fair market value occurred in the quarter; unrealized foreign exchange gain (loss) $89,507 (2021 –$(203,260)) and unrealized loss on investments and derivative instruments of $63,070 (2020 – $351,000); including a $59,500 loss on investments and a $3,620 unrealized loss related to the change in fair market value of the convertible debenture.
At January 31, 2022, the Company had a cash balance of $6,844,639 (April 30, 2021 – $723,943) to settle current liabilities of $244,249 (April 30, 2021 – $186,363). As at January 31, 2022, the Company’s cash increased by $6,120,697 from April 30, 2021 related to operating activates.
Corporate Update and Recent Developments
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 at a deemed issuance price of US$0.0 5 per common share. On March 15, 2022, the maturity date of the loan was extended to September 9, 2022. Prior to the execution of the Definitive Agreement, interest on the loan shall be 17.5% per annum. Upon execution of the Definitive Agreement, interest shall be reduced to 12.5% per annum.
As at January 31, 2022, the Company reduced the carrying value of its 60% interest in Galenas New Jersey LLC to $Nil (from a carrying value of $59,450 at the beginning of the period). The Company continues to review opportunities for cannabis licenses in new markets, and in this regard has been working with community leaders and social equity owned organizations in their efforts to successfully enter this dynamic and expanding business. These grassroots initiatives have resulted in our group submitting recreational cannabis applications for cultivation, manufacturing and retail licenses in the state of New Jersey.
Normal Course Issuer Bid (“NCIB”)
On October 5, 2021, the Company’s normal course issuer bid (“NCIB“, the “Bid“) expired and on September 10, 2021 the Company approved the renewal of the Bid, commencing on October 12, 2021 and terminating the earlier of: (i) October 11, 2022, and (ii) the date on which the maximum number of Shares are purchased pursuant to the Bid. Under the Bid, the Company may purchase up to 5% of the Company’s Shares. On November 3, 2021, the Company purchased 103,000 common shares under the Bid at a cost of $3,183 and on December 1, 2022 these shares were cancelled.
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).
