Second Quarter 2020 Financial Updates
- Net loss of
$20.9 million , or a loss of$0.12 per share - Reported revenues of
$34.6 million , up 14% from the prior quarter - Gross margin for the quarter was 54.8%, up from 49.2% in the prior quarter
- Due to liquidity constraints experienced by the Company, the Company did not make applicable interest payments due on its 13% senior secured convertible debentures ("Secured Notes") and its 8% convertible unsecured debentures ("Unsecured Debentures") due on
March 31, 2020 orJune 30, 2020 . As previously disclosed, the non-payment of interest inMarch 2020 triggered an event of default with respect to these components of the Company's long-term debt, consisting of principal amounts at face value of$97.5 million and$60.0 million and accrued interest amounts atJune 30, 2020 of$7.1 million and$2.4 million on the Secured Notes and Unsecured Debentures, respectively. In addition, as a result of the default, the Company has accrued additional fees and interest of$12.9 million in excess of the aforementioned amounts that are further detailed in the Company's Financial Statements.
Table 1: Q2 2020 Financial Results | ||||||
in thousands of US$, except share and per | Q2 2020 | Q1 2020 | Q2 2019 | |||
Reported revenues | $ | 34,646 | $ | 30,426 | $ | 19,200 |
Gross profit, excluding fair value items | 18,994 | 14,979 | 9,197 | |||
Gross margin, excluding fair value items | 54.8% | 49.2% | 47.9% | |||
Net loss | (20,927) | (257,353) | (9,290) | |||
Net loss per share | (0.12) | (1.50) | (0.06) | |||
Recapitalization Transaction
On
Further to the Company's news release dated
Securityholder approval and Court approval were the two primary conditions precedent for closing the Recapitalization Transaction, both of which conditions have been satisfied. The closing of the Recapitalization Transaction remains subject to certain other customary closing conditions set out in the previously disclosed Restructuring Support Agreement and the Arrangement Agreement, copies of which are available under the Company's SEDAR profile at www.sedar.com (and filed on
Certain of the transactions contemplated by the Recapitalization Transaction may trigger a review and approval requirement by state-level regulators in certain
About iAnthus
iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout
COVID-19 Risk Factor
The Company may be impacted by business interruptions resulting from pandemics and public health emergencies, including those related to COVID-19. An outbreak of infectious disease, a pandemic, or a similar public health threat, such as the recent outbreak of COVID-19, or a fear of any of the foregoing could adversely impact the Company by causing operating, manufacturing, supply chain, and project development delays and disruptions, labor shortages, travel, and shipping disruption and shutdowns (including as a result of government regulation and prevention measures). It is unknown whether and how the Company may be affected if such a pandemic persists for an extended period of time, including as a result of the waiver of regulatory requirements or the implementation of emergency regulations to which the Company is subject. Although the Company has been deemed essential and/or has been permitted to continue operating its facilities in the states in which it cultivates, processes, manufactures, and sells cannabis during the pendency of the COVID-19 pandemic, there is no assurance that the Company's operations will continue to be deemed essential and/or will continue to be permitted to operate. The Company may incur expenses or delays relating to such events outside of its control, which could have a material adverse impact on its business, operating results, financial condition, and the trading price of the Company's common shares.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties, including concerning COVID-19 and the specific factors disclosed here and elsewhere in iAnthus' periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should, our vision" and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements relating to the Company's financial performance, business development and results of operations and the timing and outcome of closing of the Recapitalization Transaction.
Readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. iAnthus disclaims any intention or obligation to update or revise such information, except as required by applicable law, and iAnthus does not assume any liability for disclosure relating to any other company mentioned herein.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in
View original content:http://www.prnewswire.com/news-releases/-ianthus-reports-fiscal-second-quarter-2020-financial-results-301153726.html
SOURCE
© Canada Newswire, source