NAPANEE, Ontario, Nov. 29, 2017 (GLOBE NEWSWIRE) -- ABcann Global Corporation (TSXV:ABCN) (“ABcann” or the “Company”) today announces the release of its financial results for the three and nine months ended September 30, 2017. Copies of the interim filings, including the Management’s Discussion and Analysis for the period, are available under the Company’s SEDAR profile at www.sedar.com.
Highlights from Q3/17
- Cash position of over $43 million, which positions ABcann well to fund its expansion plans.
- Revenues of $614K for the nine months ended September 30, 2017 as compared to $211K in the comparable prior year period.
- Cancellation of 15 million dilutive warrants as a result of the completion of the $15 million equity financing with Cannabis Wheaton Income Corp. in July 2017 and the exercise of warrants for aggregate proceeds of approximately $7.5 million.
Subsequent Events
- Strengthened leadership: announced the appointment of Barry Fishman as Chief Executive Officer and as a director, Paul Lucas as Independent Chair, and Rick Fitzgerald as an independent director, and the proposed appointment of Michael Bumby as Chief Financial Officer, which is to be effective as of December 1, 2017.
- Debentures in the aggregate principal amount of $5.3 million were converted into common shares of the Company.
- Further to the Company’s news release of November 27, 2017, entered into a binding interim agreement with respect to a proposed private placement of convertible senior unsecured debentures in the aggregate principal amount of $30 million, the completion of which is subject to various conditions, including execution of definitive agreements, the receipt of the approval of the TSX Venture Exchange, and the conversion of existing secured convertible debentures of the Company in the principal amount of $15 million.
Financial Results
For the quarter ended September 30, 2017, ABcann reported revenues of $177K, and a net loss of $3.7 million as the Company continued to invest to drive future growth. As at September 30, 2017, the Company had $43.4 million in cash, cash equivalents and marketable securities, and 126.1 million common shares outstanding, and there are approximately 135.7 million shares outstanding as at the date hereof.
Business Priorities
ABcann CEO and director, Barry Fishman, commented, “ABcann’s vision is to create a successful long-term business that creates superior products for our customers, value for our shareholders and a great workplace for our team. Our management team is working diligently to establish a strategic plan that will provide a roadmap for the Company’s long-term success in the fast-growing global cannabis industry.”
ABcann is widely recognized as a producer of premium cannabis – grown using proprietary advanced techniques tailored to optimize quality and consistency. High-tech growing is our differentiator. Our technology allows us to precisely control environmental variables to facilitate the development of a diverse line of products.
ABcann is focused on three main priorities: (i) deploying an operating model that achieves competitive margins, (ii) recruiting and retaining top talent to ensure flawless execution of our business plan, and (iii) building a strong patient base by providing a differentiated customer experience.
ABcann currently sells pharmaceutical-grade cannabis from organic inputs that are 100% free of harmful pesticides. Our future plans include a full line of dry flower, oils, edibles, capsules and transdermal products.
Facility Update
ABcann is on track to complete the expansion of our high-tech Vanluven facility to 30,000 square feet by mid-2018. The Company is currently reviewing a variety of expansion alternatives to find the most cost-effective way to build or acquire over 15 tons of incremental capacity per year to expand our medicinal business and address the recreational market in 2018. The Company’s balance sheet currently has a cash position of over $43 million which will largely be allocated to fund our growth plans.
Germany Update
Germany’s domestic cultivation program is planned to be in place and producing cannabis by 2019. ABcann participated in an application process related to domestic cultivation licenses but did not qualify as a short-list candidate due to having lower cannabis sales as compared to other applicants. ABcann believes German authorities are likely to issue another round of tenders early in 2018, and the Company is planning to participate.
ABcann is also planning to obtain a distribution/import license for Germanyand is working towards fulfilling the requirements of GMP certification of the Vanluven facility and the completion of six-month stability testing in connection therewith. The Company is not expecting to import cannabis into Germany prior to mid-2018. Germany, which is expected to be a stepping-stone to other European countries, as well as Australia, continue to be strategic international markets for ABcann.
About ABcann:
ABcann holds production and sales licenses from Health Canada. Its flagship facility in Napanee, Ontario contains proprietary plant-growing technology, centred on its specially designed, environmentally-controlled growing chambers. This approach results in the production of pharmaceutical-grade cannabis products.
The Company is expanding its cultivation capacity and pursuing partnership and product development opportunities domestically, as well as in select international markets, such as Germany, Australia and Israel.
ON BEHALF OF THE BOARD OF DIRECTORS
"Barry Fishman"
Barry Fishman
CEO and Director
For further information, please contact Barry Fishman at barry.fishman@abcannglobal.com or Aaron Keay at aaron@abcannglobal.com.