NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
VANCOUVER, B.C., April 03, 2018 (GLOBE NEWSWIRE) -- Body and Mind Inc. (CSE:BAMM) (US OTC:BMMJ), (the
“Company” or “BAM”) announces the filing of its unaudited condensed consolidated interim financial statements for
the six months ended January 31, 2018 (the “Q2 Financial Statements”). The Q2 financial statements are the first reported
consolidated financial statements of the Company since the acquisition of Nevada Medical Group LLC (“NMG”) by BAM on November 14,
2017 (the “Acquisition”). It should be highlighted to readers of these financial statements that the income statement of the
Company’s operating company, NMG, only covers the reporting period from the date of Acquisition to Jan 31, 2018. Revenues and
expenses prior to the Acquisition date have been recorded as part of the Acquisition. The parent company’s income statement is
recoded for the full six month period ended January 31, 2018. Unless stated otherwise, all figures disclosed in the Company’s
financial statements are stated in United States Dollars.
Robert Hasman, BAM President commented, “Our initial 10 week reporting period for our 100% owned operating
subsidiary, Nevada Medical Group, was solid with a gross margin totaling USD $563,280 (approximately $720,000 in Canadian dollar
terms). Having expanded our trim purchases, combined with increased yields, and the anticipated increase of flower production
from the Pepper Lane expansion, we anticipate meaningful reporting improvements in our core business over the next several
quarters. With listing costs now behind us, we expect improved overall performance going forward in spite of transaction
assessment costs which will be prevalent.”
Q2 Financial Highlights ($USD):
• |
Cash
|
|
$ 1,678,590 |
• |
Total sales |
|
$ 831,455 |
• |
Cost of Sales |
|
$ 268,175 |
• |
Gross Margin |
|
$ 563,280 |
• |
G&A expenses |
|
$1,912,863 |
• |
Net loss |
|
$1,419,935 |
Included in G&A expenses are the following non-cash charges and non-recurring expenditures ($USD):
• |
Listing costs (Acquisition) |
|
$ 471,408 |
• |
Stock based compensation |
|
$ 733,679 |
• |
Depreciation |
|
$ 1,575 |
Share Structure
• |
Issued and outstanding |
|
47,704,317 |
• |
Warrants |
|
10,106,820 |
• |
Stock Options |
|
3,850,000 |
• |
Fully Diluted |
|
61,661,137 |
Corporate Update
The company is pleased to report the expansion of its current facility is well under way. Construction has
commenced and is expected to increase light capacity by approximately 40%. The project is on track to be completed by mid-summer of
2018 and is within budget.
Robert Hasman, BAM President commented, “The company is continuing to evaluate further avenues of expansion as
we believe the acquisition of retail, along with the expansion of production & cultivation facilities, enables the Company to
vertically integrate its business. The company has already secured a highly desired retail location in anticipation of new retail
applications. We expect the state to release new applications sometime this quarter and it is further anticipated that any new
applications will only be issued to currently active facilities.”
Pepper Lane North
Clark County has recently informed the Company that prior to any permitting, it is requiring the relocation of a
nearby community church that leases office space in a commercial building that is within close proximity to the Pepper Lane North
facility. The company has discussed relocation with the church, but to date, has not reached a resolution. A relocation plan would
need to commence prior to the purchase of the Pepper Lane North building which is scheduled to close May 2018.
The company will continue to evaluate its options regarding relocating the Church and several M&A
opportunities, which include the immediate acquisition of cultivation, production, and retail facilities.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information regarding Body and Mind Inc. please contact:
Darren Tindale
604-376-3567
stonerockltd@gmail.com
Notice regarding Forward Looking Statements: This news release contains
forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project",
"should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that
the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by their very nature they involve inherent risks and
uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those
currently anticipated due to a number of factors and risks including the inability of the Company to obtain shareholder and
exchange approval, or to raise additional equity as well as the various risk factors discussed in the Company's disclosure
documents, which can be found under the Company's profile on www.sedar.com.
Body and Mind Inc. undertakes no obligation to update publicly or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as required by law or the Canadian Securities
Exchange.
We seek safe harbour.