VANCOUVER, Dec. 20, 2018 /CNW/ - 1933 Industries Inc. (the
"Company" or "1933 Industries") (CSE: TGIF) (OTCQX: TGIFF) a licensed cultivator and producer of cannabis flower and concentrates
and manufacturer of hemp/CBD products in Nevada, Colorado and
California, is pleased to announce that it reached record quarterly sales revenue during the
three months ended October 31, 2018 ("Q1 2019").
Q1 2019 Selected Financial Highlights
All amounts expressed are in Canadian dollars
- Consolidated revenues of $4,616,812, an increase of 46% over same quarter last year
- 18% revenue increase over the fourth quarter 2018
- Gross margin of $1,932,332 (42%)
- Cash balance of $15,165,630 at the end of the period
- Net loss of $3,046,665
- Negative adjusted EBITDA of $857,845
- Total assets increased to $56,486,526, up from $41,339,616 in
the previous quarter
Segmented Information
- Alternative Medicine Association ("AMA") reports sales revenue of $2,256,764, with a gross
margin of $702,472 (31%)
- Infused MFG. ("Infused") reports $2,278,143 in sales revenue with gross margin of
$1,147,955 (50%)
- Spire Global Strategy reports consulting revenue of $81,905
|
|
|
|
|
|
October 31,
2018
|
October 31,
2017
|
Total revenue
|
|
$
|
4,616,812
|
$
|
2,464,487
|
Gross profit
|
|
1,932,332
|
1,162,866
|
Net loss
|
|
(3,046,665)
|
(570,695)
|
Comprehensive loss
|
|
(2,705,802)
|
(1,106,103)
|
Basic and diluted loss per share
|
|
(0.01)
|
(0.06)
|
|
|
|
|
|
|
October 31,
2018
|
July 31, 2018
|
Current assets
|
|
$
|
23,761,885
|
$
|
13,398,978
|
Total assets
|
|
56,486,526
|
41,339,616
|
Current liabilities
|
|
4,066,715
|
2,391,088
|
Total liabilities
|
|
14,994,814
|
4,356,119
|
Management Commentary
"We are pleased to report another strong quarter of steady growth from our subsidiary companies. Increased demand for
our cannabis products in the States of Nevada, California and
Colorado are continuing to fuel this growth, while we focus on expanding wholesale capacity for
our THC line of products and increasing sales of our CBD products across the U.S", noted Mr. Brayden
Sutton, President and CEO of the Company. "To maintain this growth, we have added key members to our team in finance,
business development, sales and marketing and operations. We continue to make progress on our expansion in Las Vegas and remain focused on both organic and accretive growth in the next quarter".
Developments in Q1 2019
- On August 3, the Company announced the filing of a preliminary short form prospectus with a
commercially reasonable efforts offering of convertible debenture units for aggregate gross proceeds of up to $15,000,000, led by Canaccord Genuity Corp. as lead agent and sole book-runner, together with Beacon
Securities Limited.
- On August 7, the Company announced record sales for the month of July from its subsidiaries
in Nevada and reported combined sales of $1.6M CAD, a 362
percent increase over July 2017.
- On August 31, the Company announced the receipt for its final short form prospectus filed
with the securities regulatory authorities in British Columbia, Alberta, Saskatchewan and Ontario, in
connection with the previously-announced offering of convertible debenture units of the Company.
- On September 14, the Company announced the closing of its short form prospectus offering of
convertible debenture units, which included the exercise of an overallotment option, and raised gross proceeds of $17,250,000.
- On September 27, the Company announced the continuation out of the province of Alberta and into the province of B.C. and concurrent name change to 1933 Industries Inc.
- On October 5, 2018, the Company announced that Infused began sales of its products in the
State of Colorado, in conjunction with a previously announced licensing agreement with Denver
Dab Co. ("DDC") on June 5, 2018.
- On October 5, 2018, the Company launched Canna Fused™, a 1:1 CBD/THC-infused product line,
making its debut in Denver in partnership with DDC, and announced that AMA entered into a
licensing agreement with DDC for the exclusive rights to produce, manufacture, market, and sell DDC's licensed products in the
State of Nevada.
- On October 5, 2018, the Company announced the grant of 8,925,000 incentive stock options to
its directors, officers, consultants and employees pursuant to its stock option plan.
- On October 12, 2018, the Company reported that Infused hit record growth from increased
demand for its Canna Hemp™ proprietary line of hemp-based, CBD-infused products, resulting in increased revenue from
US$7,403 in June of 2017 to over US$600,000 per month in just 14
months, representing an 8,000% increase. Infused continue to expand sales of its products in Nevada, California and Colorado.
- On October 23, 2018, the Company announced that its subsidiary, Spire Global Strategy had
been awarded a contract to develop a Cannabis Regulatory Compliance Course at Selkirk College, a
post-secondary institution located in the epicentre of cannabis cultivation in the Province of British Columbia.
Detailed information on the financials and the management's discussion and analysis can be found
at https://sedar.com/
About 1933 Industries Inc.
1933 Industries Inc. is a vertically integrated cannabis company with operations in the United
States and Canada. Operating through three subsidiary companies, 1933 Industries owns
licensed medical and adult-use cannabis cultivation and production assets, proprietary hemp-based, CBD infused products, CBD
extraction services and a specialized cannabis advisory firm supporting clients in security, intelligence and due diligence. The
Company owns 91% of both Alternative Medicine Association and Infused MFG. and 100% of Spire Global Strategy.
Please visit our website at http://www.1933industries.com
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.
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 various risk factors discussed in the Company's disclosure
documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries 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.
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