TORONTO, Aug. 24, 2018 (GLOBE NEWSWIRE) -- Maricann Group Inc. (CSE:MARI)(FRANKFURT: 75M)(OTCQB:MRRCF)(“Maricann” or the
“Company”) has reported its financial and operating results for the first quarter ended June 30, 2018. All figures are stated in
Canadian Dollars.
“We have achieved significant supply agreements with a number of provinces to supply our cannabis products which is expected to
transform into shareholder value with compelling revenue in Q4 2018, 2019 and beyond. As previously disclosed, the Company has
reserved product for the recreational market commencing October 17th and its pharmacy joint initiative commencing October
1st. The Company made the conscious decision to preserve inventory to meet demand for these strategic long-term sales
channels,” commented Ben Ward CEO of Maricann.
Highlights for the quarter include:
- Received Health Canada approval for cultivation in our state-of the-art, purpose built cannabis grow facility based in
Langton, Ontario.
- The Company received GMP certification for our Canadian operations, making Maricann 1 of only 5 companies in the world to be
accredited with this recognition.
- During the quarter we completed our acquisition of Haxxon AG, which provided access to the Swiss market and saw an increase
in our European footprint.
- Q2 saw the first seeds planted for our outdoor hemp operations. This crop will provide raw materials for our European
nutraceutical business, MariPlant.
- Entered into a Letter of Intent to acquire a license in Malta as requested by Malta Enterprise, the government entity
responsible for issuing such licenses.
- Expanded our management team with the hiring of Morten Brandt as our European General Manager. Pharmaceutical executive
formerly with Norgine, Mr. Brandt has a wide range of experience within the Life Sciences sector and will be based in
Germany.
- Entered into a supply agreement with the Manitoba Liquor and Lotteries Committee, to provide quality products to
Manitobans.
- Subsequent to June 30, 2018, the Company acquired all of the outstanding shares of Proimaging AG (“Proimaging”), a
corporation incorporated in Switzerland. Proimaging’s sole asset is a proposed clean-room cultivation, processing and extraction
plant located in Ebersbach, Germany. The total purchase price paid was €3,000,000, which includes the assumption of all of the
liabilities of Proimaging amounting to €1,016,463. As at June 30, 2018, the Company had paid a reservation fee and rent of
€160,000 ($233,582) which were deducted from the total purchase price per the terms of the share purchase agreement. The
remaining purchase price of €2,840,000 ($4,380,384) was paid subsequent to June 30, 2018.
At June 30, 2018, Maricann recognized revenue of $1,157,887 and $1,758,478 for the three and six months ended June 30, 2018,
respectively, as compared to $661,602 and $1,804,769 during the same periods in 2017 an increase of $496,285 or 75% for the three
months ended June 30, 2018 and a decrease of $46,291 or 3% for the six months ended June 30, 2018. The increase in revenue during
the three months ended June 30, 2018 compared to June 30, 2017 is primarily related to two large bulk supply orders completed
during Q2 2018.
For the six-months ended June 30, 2018, cash flow used in operating activities was $19,565,941 and the Company had used cash of
$35,195,964 related to investing activities. Investing activities during the period relate to the Company’s new building in Langton
and other facility upgrades and the purchase of production equipment, computers and furniture as well as advancements towards
investments of the German subsidiary. Cash flows provided by financing activities for the six months ended June 30, 2018 were
$38,581,031. The cash provided by financing activities is primarily due to an issuance of special warrants in January 2018 which
resulted in proceeds, net of issuance costs, of $37,794,030, proceeds received on exercise of stock options and warrants of
$1,850,529 and offset by interest payments of $988,131 on the Company’s convertible debentures and repayment of capital leases of
$75,398. Subsequent to June 30, 2018, the Company closed a private placement offering of special warrants for aggregate gross
proceeds of $37,401,760. See press release dated August 10, 2018.
The Company’s complete set of financial statements for the period ended June 30, 2018 and the corresponding management’s
discussions and analysis have been filed on the SEDAR website at www.sedar.com.
About Maricann Group Inc.
Maricann is a vertically integrated producer and distributor of cannabis for medical purposes. The Company was founded in 2013
and is based in Burlington, Ontario, Canada and Munich, Germany, with production facilities in Langton, Ontario where it operates a
medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of
Canada. The Company also has production operations in Dresden, Saxony, Germany and Regensdorf, Switzerland. Maricann is currently
undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft. (87,515 sq. m) and will continue
to pursue new opportunities in Europe.
Forward Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to,
information and statements regarding or inferring the future business, operations, financial performance, prospects, and other
plans, intentions, expectations, estimates, and beliefs of the Company. Forward-looking information and statements involve and are
subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results,
performance, or achievements of the Company to be materially different from future events, results, performance, and achievements
expressed or implied by forward-looking information and statements herein. Such statements include statements regarding revenue
generation from sales to provinces. Although the Company believes that any forward-looking information and statements herein are
reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and
statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and
accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance
upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date
hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or
revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do
differ from those projected in any forward looking information and statements herein, whether as a result of new information,
future events or results, or otherwise, except as required by applicable laws.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news
release.
For more information about Maricann, please visit our website at www.maricann.com
CONTACT INFORMATION
Investor Relations
Graham Farrell
Director of Investor Relations
graham@maricann.com
647-643-7665
Corporate Headquarters (Canada)
Maricann Group Inc. (Toronto)
845 Harrington Court, Unit 3
Burlington Ontario L7N 3P3
Canada
289-288-6274
European Headquarters (Germany)
Maricann GmbH
Thierschstrasse 3, 80538 Munchen, Deutschland
