All monetary figures in this press release are in Canadian dollars unless specified otherwise.
Primary Highlights for
- Gross Revenue increased +495% in Q3 2021 to
$1,290,000 compared to$216,738 in Q2 2021; - General and Administrative Expenses decreased 10.4% in Q3 2021 to
$1,666,031 compared to$1,858,867 in Q2 2021; - Total of
$24,808,196 in assets and a net working capital balance (current assets less current liabilities) of$9,556,801 ; - Currently engaged in the processing of its stock of dried cannabis biomass into various extracts including distilled and winterized oils, kief, and additional extracted products for sale to other Licensed Producers;
- Sales in the quarter were primarily derived from distillate and kief as production continued to ramp up for both product lines;
- The gross margin percentage for the three-month period was 59% before fair value adjustment. In the comparative period, the Company was not in a revenue-generating position; and
- On
October 26, 2021 , the Company successfully completed harvesting its second crop which has already proven to be a higher yield than the inaugural crop with better quality biomass through enhanced harvesting techniques.
Christina Lake Cannabis Fiscal Q3 2021 Financial Summary
Three months ended | Nine months ended | ||||||||||||
Three and nine months period ended, | Notes | 2021 $ | 2020 $ | 2021 $ | 2020 $ | ||||||||
Revenue | |||||||||||||
Revenue from sale of goods | 1,290,722 | - | 1,569,881 | - | |||||||||
Cost of sales | (532,428 | ) | - | (623,933 | ) | - | |||||||
Gross profit before fair value adjustments | 758,294 | - | 945,948 | - | |||||||||
Changes in fair value of inventory sold | (742,593 | ) | - | (918,074 | ) | - | |||||||
Gross profit from sale of goods | 15,701 | - | 27,874 | - | |||||||||
Fair value change on growth of biological asset | 5,430,173 | 3,046,237 | 5,430,173 | 3,046,237 | |||||||||
General and administrative expenses | |||||||||||||
Accretion | 8,9,11 | 188,880 | 79,129 | 382,214 | 134,989 | ||||||||
Consulting fees | 12 | 122,133 | 343,973 | 328,733 | 450,367 | ||||||||
Communication expense | 1,975 | - | 69,021 | - | |||||||||
Corporate development | - | - | 365,872 | - | |||||||||
Depreciation | 4 | 77,080 | 7,166 | 381,028 | 14,331 | ||||||||
Foreign exchange | (4 | ) | - | (451 | ) | - | |||||||
Interest expense | 9 | 182,066 | 109,189 | 452,711 | 176,902 | ||||||||
Insurance | 21,478 | 10,088 | 62,370 | 30,422 | |||||||||
Management fees | 12 | 36,000 | - | 108,000 | - | ||||||||
Marketing | 1,574 | - | 403,884 | - | |||||||||
Nursery expenses | 30,156 | (73,385 | ) | 36,864 | 65,466 | ||||||||
Office and miscellaneous | 49,589 | 50,227 | 229,784 | 236,653 | |||||||||
Professional fees | 240,963 | 106,941 | 398,095 | 222,266 | |||||||||
Property taxes | - | - | 30,566 | 25,144 | |||||||||
Salaries | 12 | 318,237 | 145,431 | 1,037,998 | 652,711 | ||||||||
Share based compensation | 12,13 | 372,531 | 1,272,522 | 924,935 | 1,429,777 | ||||||||
Repairs and maintenance | 17,475 | - | 35,579 | - | |||||||||
Regulatory fees | 5,898 | 117,193 | 84,155 | 155,205 | |||||||||
Total general and administrative expenses | (1,666,031 | ) | (2,168,474 | ) | (5,331,358 | ) | (3,594.233 | ) | |||||
Other items | |||||||||||||
Accounts payable write down | - | - | (38,528 | ) | 32,817 | ||||||||
Fair value preferred shares | 13 | - | - | 510,521 | - | ||||||||
Loss on sale of equipment | - | - | 4,900 | - | |||||||||
Total other items | - | - | (476,893 | ) | - | ||||||||
Net and comprehensive income (loss) for the period | $ | 3,779,843 | $ | 877,763 | $ | (350,204 | ) | $ | (515,179 | ) | |||
Gain (loss) per share – basic and diluted | $ | 0.03 | $ | 0.01 | $ | (0.00 | ) | $ | (0.01 | ) | |||
Weighted average number of common shares outstanding | 112,607,372 | 81,004,447 | 105,639,215 | 78,071,770 |
Notable Business Updates
Attaining Key Benchmark of Tetrahydrocannabinol (“THC”) Concentration
In a press release dated
Performance of Experimental Cannabis Strains Under Natural Sunlight
In addition to the Company’s seven “proven” cannabis strains comprising the majority of its 2021 crop, more than 90 “experimental” strains have also progressed to the outdoor testing phase and performed exceptionally when grown under natural sunlight. The Company intends to incorporate certain “experimental” strains grown outdoors this year into its strain selection for the 2022 growing season.
About
On behalf of
“Joel Dumaresq”
For more information about CLC, please visit: www.christinalakecannabis.com
Investor Relations and Media Inquiries
jamie@clcannabis.com
416-268-9432
THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.
Forward-Looking Information: This news release includes certain statements that may be deemed “forward-looking statements.” The use of any of the words “anticipate,” “continue,” “estimate,” “expect,” “may,” “will,” “would,” “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 http://www.sedar.com.
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Disclosures relating to investor relations firms retained by
Source:
2021 GlobeNewswire, Inc., source