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Financial Highlights:
- Cash position was
$741 as atJuly 31, 2021 compared to$1,835 as atApril 30, 2021 . - Revenue was
$4,024 , an increase of$1,497 or 59%, compared to$2,527 during the same period in the prior year. - Loss and Comprehensive Loss for the three months was
$2,575 , an increase of$1,943 or 307% compared to a loss of$632 during the same period in 2020. Loss and Comprehensive Loss for the three months endingJuly 31, 2021 included a one-time inventory impairment of$1,004 and there was an unrealized gain on changes in fair value of biological assets of$712 in the same period of the prior year. - Cash flow used in operating activities was
$347 , an increase of$69 or 25%, compared to$278 during the same period in 2020. - Cash flow used in investing activities was
$576 during the three months endingJuly 31, 2021 ,$131 of net cash was provided by the investing activities during the same period in the prior year. - Net cash used in financing activities was
$171 compared to$268 during the same period in 2020. - Shareholder's equity was a surplus of
$4,484 compared to$6,873 as ofApril 30, 2021 .
Business Highlights:
- On
May 27, 2021 , the Company's wholly-owned subsidiaryCanada House Clinics Inc. ("CHC") completed the acquisition ofMargaree Health Group Inc. ("Margaree"). Margaree is a medical cannabis clinic dedicated to Veterans inNova Scotia . Margaree's patients will be served by theHalifax clinic of CHC. CHC purchased 100% of the issued and outstanding shares of Margaree for cash consideration of$500,000 and a three-year earn-out measured against Margaree's revenue during the earn-out period. CHC has also committed to further increase its contributions to veteran causes both through theNot-for-Profit Post Traumatic Growth Association and additional programs. - On
May 31, 2021 ,Abba Medix Corp. ("Abba"), the Company's wholly-owned subsidiary, fulfilled its first purchase order from Cannabis New Brunswick for 3.5-gram dried flower formats of Critical Orange Punch and VetStar Night strains. The Company entered into an agreement with aNew Brunswick based licence producer to source locally grown, premium cannabis products to supplement its offerings to Cannabis New Brunswick, Abba's medical patient base, and other provincial distribution channels. - On
June 1, 2021 , Abba completed the shipment of its first order of adult-use dried flower products to third-party distributor, National Cannabis Distribution ("NCD"), for sale inSaskatchewan , the fifth province in which Abba's products were made available to recreational consumers. Abba initially offered 15-gram dried flower and 0.5 gram pre-rolled formats, including internally cultivated Purple Bud and Critical Orange Punch genetics toSaskatchewan consumers and subsequently received additional purchase orders to bring additional products to NCD serviced licensed retailers inSaskatchewan . - On
June 7, 2021 , the Company entered into a product acquisition agreement withGroupe Fuga Inc. ("Fuga"). Under the terms of the agreement, Abba will distribute Fuga's first product: Tropicanna Cookies, a strain with unique properties crafted in accordance with the industry's high standards to its medical patient base and through its existing recreational sales channels. Fuga is a medical and recreational cannabis grower located inStoneham, Quebec . - On
June 7, 2021 , the Company changed its registered office to 551 Rue Saint-Marc,Louiseville, Quebec , J5V 2L4,Canada . - On
June 14, 2021 , Abba entered into an exclusive agreement withMontreal Cannabis Medical Inc. ("MTL Cannabis") for Abba's distribution of MTL Cannabis' high-grade dried flower to Abba's medical patient base (the "Exclusivity Agreement"). Under the terms of the Exclusivity Agreement, MTL Cannabis partnered with Abba to be the exclusive distributor of certain varieties of cannabis material produced by MTL Cannabis and destined for sale to medical patients inCanada . The variety of strains that will be supplied to support medical patients include: MTL Cannabis' signature strain Sage n' Sour, as well as Cookies N' Cream and Candyland, along with up to six more future genetics. The dried flower format of these strains were initially offered through Abba's medical brand, with a long-term plan to develop an "MTL Medical" branded line of medical product offerings. - On
July 6, 2021 , Abba surpassed 1,000 active medical patient registrations. Abba's active medical patient registrations have grown from fewer than 600 inJanuary 2021 to over 1,000, representing patient growth of more than 67% in the first 6 months of this calendar year.
The Company is also pleased to announce that
About
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 and cannabis based edibles, vapes and oils legal for recreational use on
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.
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