TORONTO, Aug. 30, 2017 (GLOBE NEWSWIRE) -- WeedMD Inc. (TSX-V:WMD) (“WeedMD”
or the “Company”), a federally licensed producer and distributor of medical cannabis, is pleased to announce its
financial results for the period ended June 30, 2017, and to provide a corporate update.
Second Quarter 2017 Milestones:
Completed Public
Listing on the TSX Venture Exchange |
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Secured License to Sell Medical Cannabis and
Live Cannabis Plants |
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Launched Patient Services and Started Registering Patients |
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Secured License to
Produce Cannabis Oil |
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Shipped Live Cannabis Plants to Patients |
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Commenced Sales and
Reported First Quarter of Revenue |
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“WeedMD is achieving every initiative provided to shareholders either on or ahead of schedule - a testament to
our team that is committed to the success of the Company. We are hitting all of our licensing milestones, generating strong yields,
maintaining costs in line with our budget and producing product that is exceeding our patients’ expectations. We are building our
business and look forward to continuing to deliver value for all of our shareholders,” said Bruce Dawson-Scully, CEO of WeedMD.
Operational Highlights:
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Public listing on the TSX Venture Exchange on April 27th (see here): Commencement of trading on the TSX Venture Exchange under the ticker symbol “WMD” after a
successful completion of the reverse take-over of Aumento Capital V Corporation.
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Sales license secured on April 28th (see here): WeedMD’s 25,620 sq. ft. indoor production facility in Aylmer, Ontario, is operating at
full capacity and is currently on track to produce in excess of 1,200 kg of dried cannabis per annum. Yields and costs are
consistently improving with each harvest. Patient registration officially began on May 31st (see here) and the Company has since been steadily increasing its patient base and sales.
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Selling clones to home grow patients under ACMPR on June 13th (see here): The
Company is currently offering several strains for patients opting to grow their own medicinal cannabis and has structured its
pricing to provide reasonable and affordable access to a variety of medical cannabis strains. WeedMD has developed and
successfully rolled out a proprietary system for packaging and shipping live cannabis plants to patients.
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Partnership with Van der Pop to bring leading female-focused brand to Canada on June 15th (see
here): This partnership brings WeedMD further along its strategic path of targeting unique and
underserved demographics of the Canadian cannabis market. The Company expects to deliver medical cannabis under the Van der Pop
brand to its Canadian patients starting in late 2017. Patients eager to interact with Van der Pop are encouraged to visit Tokyo
Smoke’s new flagship location on Queen West, in Toronto, where Van der Pop merchandise is being prominently displayed (see
here).
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License to produce cannabis oils secured on June 19th (see here): Since receiving an oil production license, WeedMD has successfully imported and
commissioned a purpose-built high-throughput ethanol extraction machine from Germany and has already produced, packaged and
tested several batches of oil.
- Acceleration of production and strain development: During the quarter, WeedMD successfully continued the
ramp up and calibration of its operations, resulting in steadily increased production with decreased associated costs per gram.
WeedMD also spent time developing its extensive genetic bank, with several new strains developed this quarter with the intention
of making them commercially available throughout the remainder of 2017.
Financial Highlights:
For the quarter ended |
Jun 30,
2017 |
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Mar 31, 2017 |
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($) |
($) |
Revenue |
235,659 |
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Adjusted operating loss |
(1,280,046) |
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(1,070,369) |
Loss per share (basic and fully
diluted) |
(0.08) |
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(0.05) |
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As At |
Jun 30,
2017 |
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Dec 31, 2016 |
Total Assets |
9,193,579 |
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10,052,971 |
Total Liabilities |
770,337 |
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6,970,144 |
Working Capital |
6,501,895 |
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1,330,566 |
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- WeedMD generated $235,659 of revenue in its first quarter of sales. Revenues were derived primarily
from the sale of dried medical cannabis and live cannabis plants. The Company received its license from Health Canada to sell
medical cannabis under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) on April 28, 2017, and most of these
sales occurred in June.
- Adjusted operating loss in the quarter was ($1,280,046), as compared to ($1,070,369) in the prior quarter.
The increase in adjusted operating loss is due to an increase in production and headcount, additional expenses associated with
being a public company, and costs associated with the launch of patient services and marketing due to the commencement of sales.
Adjusted operating loss is a non-IFRS measure which has been implemented to remove non-cash and non-recurring expenditures to
provide a better indication of ongoing performance.
- Cash of $3,968,371 at the end of the period, and Working Capital of $6,501,897. Management believes the
Company has sufficient working capital to maintain its existing operations through the summer of 2018.
“Momentum in Q2 is being carried into Q3 with WeedMD continuing to execute towards its vision of becoming a
leader in niche and underserved seniors and female demographics within the burgeoning Canadian cannabis market,” said Bruce
Dawson-Scully. “We are leveraging management’s deep industry expertise and relationships in the seniors, assisted-living and
long-term care industries. The Company is making significant strides in securing initial supply contracts in long-term care with
our proprietary integrated care program. In addition, the Company is working on a very compelling expansion opportunity to position
the company strategically ahead of the future adult-use market.”
For more information on WeedMD, access our investor presentation on our website here.
This press release should be read alongside WeedMD’s unaudited Financial Statements and Management’s
Discussion and Analysis Report, which can be found under the Company’s profile at www.sedar.com. WeedMD’s unaudited Financial Statements and Management’s Discussion
and Analysis Report have been filed with Canadian Securities Regulators.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and
distributor of medical cannabis pursuant to the Access to Cannabis for Medical Purposes Regulations (ACMPR). WeedMD operates a
26,000-square foot, scalable production facility in Aylmer, Ontario with four acres of property for future expansion. WeedMD is
focused on providing consistent, quality medicine to the long-term care and assisted living markets in Canada through its
comprehensive platform developed exclusively for that industry. WeedMD is dedicated to educating healthcare practitioners and
furthering public understanding of the role medical cannabis can play as a viable alternative to prescription medication in
relieving a variety of chronic medical conditions and illnesses.
Follow WeedMD on:
Facebook: https://www.facebook.com/weedmd/
LinkedIn: https://www.linkedin.com/company-beta/5020743/
Twitter: https://twitter.com/WeedMD
Instagram: https://www.instagram.com/weedmd/
Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation which are based upon WeedMD's current internal expectations, estimates, projections, assumptions and beliefs
and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as
"expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words,
including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will"
happen, or by discussions of strategy. Forward-looking information include estimates, plans, expectations, opinions, forecasts,
projections, targets, guidance or other statements that are not statements of fact.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by
law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new
information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all
such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary
statements in WeedMD's Management Discussion and Analysis for the six-month period ended June 30, 2017 and filed with the
applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in WeedMD's Management
Discussion and Analysis could cause actual events or results to differ materially from those described in any forward-looking
information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF
THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
For further information, please contact: WeedMD Inc. Keith Merker, Chief Financial Officer Tel: 519-765-2440 Ext. 222 Email: investor@weedmd.com To learn more, visit us at www.weedmd.com