49% Increase in Revenue Compared to the Same Period in the Prior Year
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES
TORONTO, March 29, 2019 (GLOBE NEWSWIRE) -- Canada House Wellness Group Inc. (CSE: CHV) (“Canada
House” or the “Company”) is pleased to report its financial results for the fiscal quarter ending January
31, 2019. All amounts are stated in thousands of Canadian dollars.
Financial Highlights:
- Revenue for the three months ending January 31, 2019 was $1,176, an increase of $386 or 49% compared to $790 in the prior
year.
- EBITDAS(1) for the three months ending January 31, 2019 was a deficit of ($1,497) compared to ($1,131) during the
same period in the prior year.
- Loss and Comprehensive loss was ($3,263) for the three months ending January 31, 2019 compared to ($4,785) for the same
period in the prior year, an improvement of $1,522 or 32%.
- Cash position was $2,638 compared to $8,953 as at April 30, 2018 and $4,259 as at October 31, 2018. During the quarter,
the Company spent $2,192 on production-related capabilities and secured $650 of new financing from the exercise of warrants and a
private placement.
- Working capital was $754 compared to $6,670 as at April 30, 2018 and $3,355 as of October 31, 2018.
- Of the $8.6 million of convertible debentures issued in December 2017, $1,170 remained outstanding as of January 31, 2019.
The conversion price of these debentures is $0.40/share.
(1) “EBITDAS” is comprised of Loss and Comprehensive Loss for the Year plus Depreciation and
amortization plus Interest, Taxes, Impairment and Stock Based Compensation. EBITDAS is a non-GAAP measure and, as such, does not
have a standardized meaning and may not be comparable to other companies' similar non-GAAP measures, but is considered by the
Company to be a useful measure of cash-flow from operations.
“This is the third consecutive quarter revenue has increased by approximately 50% compared to comparable period in the prior
year,” says Chris Churchill-Smith, CEO. “During the quarter ending January 31, 2019, we planted our first crop, and we expect to be
harvesting our first premium craft cannabis by June, 2019. As revenue increases, we intend to add an additional 160,000 s.f. of
capacity, in a modular fashion as we sell-out our existing production capacity,” concludes Mr. Churchill-Smith.
Business Highlights for the Quarter:
- Announced that it received approval from Health Canada to sell Cannabis, effective December 21, 2018, in accordance with
sections 27 and 289 of the Cannabis Regulations under the Cannabis Act. This approval comes by way of amendment to the license
held by the Company’s wholly owned subsidiary and Licensed Producer, Abba Medix Corp. (“Abba Medix”), to include the sale of
dried cannabis, cannabis oil, seeds, cannabis plants, and fresh cannabis for medical purposes.
- Abba Medix completed the harvest of four batches of premium medical cannabis at its Pickering, Ontario facility and submitted
them for lab analysis.
- Canada House Clinics, entered into a strategic partnership with Peak Pharma Solutions, leveraging its new clinic branding and
organizational changes to position itself for accelerated growth. Canada House Clinics’ superior clinic operation, trusted by
physicians for medical cannabis referrals, will be able to access proven pharmaceutical industry sales experts to educate more
physicians about the benefits and advantages of referring patients to CHC.
- Provided details of Abba Medix Corp’s acquisition of all the assets of an Alberta based cannabis production license
applicant, including approximately 54 acres of property in the town of Vegreville, Alberta. The acquisition includes two
properties located, approved for cannabis production by the county and assigned the zoning of Marijuana Processing
Facility-Direct Control District. The property is serviced with natural gas, water, sewer, and power and the vendor’s Standard
Cultivation and Processing Application, which is currently in the review and security stage with Health Canada, as well as an
approved conceptual scheme, site surveys, geotechnical survey, and Development Permit Application.
- Initiated the process for its Pickering facility to become EU-GMP compliant through discussions with a European based
consulting firm and acquiring a software licensing platform to support EU GMP compliance.
- Announced a new medical cannabis partnership with HelloMD, a leading online cannabis telehealth company to support Canada
House’s 2019 growth through expanded access to practitioner-led advice. Canada House Clinics will deploy HelloMD’s white-label
telehealth platform to supplement its own practitioner’s services and telemedicine capabilities. The turnkey and on-demand nature
of the HelloMD offering will allow Canada House Clinics to handle growth spikes when patient demands exceed its own internal
practitioner supply and also take advantage of HelloMD evening and weekend availability.
Canada House Wellness Group Inc.
Canada House is the parent company of Canada House Clinics Inc., Knalysis Technologies and Abba Medix Corp. The
Company's goal is to become a marketplace leader through strategic partnerships, mergers, and acquisitions to create a fully
integrated cannabis therapy company. For more information please visit http://www.canadahouse.ca or www.sedar.com
For further information, please contact:
Boom Capital Markets
Steve Low
647-620-5101
steve@boomcapitalmarkets.com
Canada House Wellness Group Inc.
Chris Churchill-Smith
CEO
514-313-0102
chris.smith@canadahouse.ca
Cautionary Statement Regarding Forward Looking Information. This press
release contains forward-looking statements, including statements that relate to, among other things, the Company’s clinic,
production and technology businesses, its future plans, the Company’s markets, objectives, goals, strategies, intentions, beliefs,
expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”,
“likely”, “possible”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “objective” and “continue” (or the negative
thereof) and words and expressions of similar import. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed
on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results
may differ materially from those expressed or implied in such statements. Material assumptions used to develop forward-looking
information in this news release include, among other things, the regulations related to cannabis use under the Access to Cannabis
for Medical Purposes Regulations and the act respecting cannabis and to amend the Controlled Drugs and Substances Act, the Criminal
Code and other Acts, passed by the Canadian Federal government, making cannabis legal for recreational use by October 17, 2018;
Company liquidity and capital resources, including the availability of additional capital resources to fund its activities; level
of competition; the ability to adapt products and services to the changing market; the ability to attract and retain key
executives; and the ability to execute strategic plans. Additional information about material factors that could cause actual
results to differ materially from expectations and about material factors or assumptions applied in making forward-looking
statements may be found in the Company’s most recent annual and interim Management’s Discussion and Analysis under “Risk and
Uncertainties” as well as in other public disclosure documents filed with Canadian securities regulatory authorities. The Company
does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document,
whether as a result of new information, future events or otherwise, except as required by law.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE)
accepts responsibility for the adequacy or accuracy of this release.
