"Malcolm Davidson"

"Patrick Geen"

Malcolm Davidson, CPA, CA

Patrick Geen

Chief Executive Officer

Chief Financial Officer

June 29, 2021

June 29, 2021

April 30,

July 31,

Note

2021

2020

ASSETS

Current assets

Cash

$

2,746,366

$

125,887

Sales taxes recoverable

173,546

127,571

Accounts receivable

1,211,755

-

Prepaid expenses and deposits

4

1,414,991

19,776

Construction deposit

39,379

5,661

Due from related parties

12

267,420

-

Inventory

5

11,352,687

-

Biological assets

6

623,617

6,908,568

Total current assets

8,111,681

7,187,463

Right-of-use assets

8

37,505

168,390

Intangible assets

7

2,200,000

2,200,000

Property, plant and equipment

9

16,327,498

14,248,392

Total assets

$

36,394,764

$

23,804,245

LIABILITIES

Current liabilities

Accounts payable and accrued liabilities

12

$

3,867,087

$

3,353,983

Advances payable

10

96,716

510,000

Convertible loan

11

2,398,192

987,260

Promissory note

11

190,000

190,000

Lease liabilities

8

31,674

104,966

Total current liabilities

6,583,669

5,146,209

Convertible loan

11

2,849,245

1,124,000

Lease liabilities

8

-

56,876

Total liabilities

9,432,914

6,327,085

Shareholders' equity

Share capital

13

58,852,495

49,113,552

Equity reserves

13

6,806,748

5,426,425

Convertible loan - equity portion

11

620,715

-

Commitment to issue shares

19

2,621

-

Accumulated deficit

(39,320,729)

(37,062,817)

Total shareholders' equity

17,243,770

17,477,160

Total liabilities and shareholders' equity

$

36,394,764

$

23,804,245

Commitment and contingencies (Note 17)

Subsequent events (Note 19)

Approved on behalf of the Board of Directors on June 29, 2021:

"Patrick Geen"____________ Director

_______"William Flemming"_______

Director

Three months ended

Nine months ended

April 30,

April 30,

Note

2021

2020

2021

2020

Revenue from sale of goods

$

813,385

$

-

$

1,537,125

$

-

Revenue from services

112,165

-

112,165

-

Cost of sales

5

(560,430)

-

(640,724)

-

Gross profit before fair value adjustments

365,120

-

1,008,566

-

Changes in fair value of inventory sold

(503,690)

-

(136,604)

-

Unrealized gain (loss) on change in fair value

of biological assets

6

(4,859,040)

(3,269,165)

2,670,528

(3,003,956)

Gross profit (loss) from sale of goods

(4,997,610

(3,269,165)

3,542,490

(3,003,956)

Operating Expenses

Accretion

11

24,000

-

72,000

-

Advertising and promotion

310,673

251,350

478,193

343,899

Amortization and depreciation

9,10

162,943

103,613

369,623

291,686

Automobile

5,365

32,972

23,596

75,584

Consulting fees

12

208,534

277,280

643,261

868,772

Filing and listing fees

8,834

7,685

36,138

33,087

Interest expense

8,11

305,371

-

860,787

-

Interest income

(146)

(13)

(146)

(12,583)

Legal and professional fees

74,751

193,176

422,575

391,468

Loss on settlement of debt

13

150,255

-

394,152

-

Meals and entertainment

4,132

1,455

4,132

6,980

Other expense (income)

78,622

-

(135,057)

-

Office and general expenses

682,806

201,290

999,007

824,690

Repairs and maintenance

1,411

9,791

1,411

17,650

Share-based compensation

12,13

237,392

1,315,456

1,144,973

1,414,806

Travel

28,196

4,066

41,327

28,011

Salaries and wages

12

152,834

637,073

446,533

2,494,472

Write-off of right-of-use assets

8

-

-

5,513

-

(2,435,973)

(3,035,194)

(5,808,018)

(6,778,522)

Income (loss) and comprehensive income

(loss)

$

(7,433,583)

$

(233,971)

$

(2,265,528)

$

(3,744,566)

Basic and diluted income (loss) per share

$

(0.06)

$

(0.00)

$

(0.02)

$

(0.04)

Weighted average number of ordinary

shares outstanding - basic and diluted

128,664,069

101,179,681

120,031,516

95,223,664

2021

2020

Operating activities

Loss for the period

$

(2,265,528)

$

(3,774,566)

Adjustment for non-cash items:

Amortization and depreciation

369,623

291,686

Accretion of interest of right of use assets

4,230

11,459

Accretion of promissory note

72,000

-

Accrued interest

859,892

-

Loss of settlement of debt

394,152

-

Shares and warrants issued for services

-

341,350

Share-based compensation

1,144,973

1,414,806

Acquisition of biological assets

-

(675,038)

Unrealized gain on change in fair value of biological

assets

(2,670,528)

(3,003,956)

Write-off of right-of use asset

5,513

-

Net changes in non-cash working capital:

Sales taxes recoverable

(45,975)

(140,496)

Accounts receivable

(1,211,755)

-

Prepaid expenses

321,067

27,884

Due from a related party

(267,420)

641

Accounts payable and accrued liabilities

1,631,804

761,035

Biological assets

(2,279,428)

-

Net cash used in operating activities

(3,937,380)

(4,745,195)

Investing activities

Expenditures, property, plant and equipment

(2,640,657)

(1,054,599)

Finance lease payments

(22,753)

(61,219)

Net cash used in investing activities

(2,663,410)

(1,115,818)

Financing activities

Proceeds from issuance of private placements

7,001,136

1,315,000

Proceeds from exercise of options

-

8,000

Proceeds from exercise of warrants

6,941

-

Share issuance costs

(348,524)

(61,250)

Advance received

251,716

768,500

Advances repaid

(665,000)

-

Proceeds from convertible debenture

2,975,000

-

Net cash provided by financing activities

9,221,269

2,030,250

Net increase (decrease) in cash and

equivalents

2,620,479

(3,830,763)

Cash and equivalents, beginning of period

125,887

3,922,921

Cash and equivalents, end of period

$

2,746,366

$

92,158