Net Revenue Increases by 114% and 95% for the Three and Nine Months Respectively
TORONTO, March 29, 2021 /CNW/ – Canada House Wellness Group (CSE: CHV) (“Canada House” or the “Company“) is pleased to report its financial results for the three and nine months ending January 31, 2021. All amounts are stated in thousands of Canadian dollars and can be found at www.sedar.com.
- Cash position was $3,274 as at January 31, 2021 compared to $1,767 as at April 30, 2020.
- Net Revenue for the three and nine months ending January 31, 2021 was $2,872 and $7,662, an increase of $1,530 and $3,739 or 114% and 95% compared to $1,342 and $3,923 for the same periods in the prior year. The primary reason for the increase in revenue related to recreational and medical market product revenue from Abba Medix Corp, which, net of excise tax, increased by $1,512 during the three months and $3,678 for the nine months ending January 31, 2021.
- Loss and Comprehensive loss for the three and nine months ending January 31, 2021 was $2,518 and $5,209 compared to $364 and $3,803 for the same periods in the prior year.
- Net cash used in operating activities for the nine months ending January 31, 2021 was $2,874 compared to $3,704 for the same period in the prior year.
“We are very excited about the growth in revenue company wide, which is a result of strong interest in our new format and SKU offerings, particularly in Quebec. We are continuing to stay disciplined on our core strategy of servicing the medical market with a laser focus on military veterans as well as continuing to cement our position as a leading LP in the Quebec adult use market,” comments Chris Churchill-Smith, CEO of Canada House. “We have made recent investments in our customer care team at Abba in order to maintain our excellent medical customer service standard to align with our growing medical patient base and we continue to aggressively pursue commercialization efforts of new and novel SKUs to the “Buy Local” Quebec market and other provinces.”
Subsequent to the end of the quarter, the Company announced:
- On February 18, 2021, a Cannabis 2.0 distribution agreement with Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF) (XFRA: A2QJAJ) (“Pure Extracts“), a plant-based extraction company focused on cannabis, hemp, functional mushrooms and the rapidly emerging psychedelic sector. Under the terms of the distribution agreement, the Company’s wholly owned subsidiary, Abba Medix Corp. (“Abba“), will distribute Pure Extracts’ line of concentrate products through its established provincial distribution channels.
- On February 16, 2021 that Abba had surpassed 650 active medical patient registrations, 400 of which are military Veterans. The achievement of these milestones followed Abba’s release of Veterans Kush, a cultivar developed specifically for Veterans with PTSD which has received strong praise from Abba’s patient base, exclusively to registered Abba patients. Both the Company’s clinic division, Canada House Clinics (“CHC“), and Abba are oriented to serving the Veteran market in Canada, including providing services and support beyond medical cannabis. CHC also continues to see growth in its Veteran patient base, with recent initiatives accelerating growth to exceed 3,100 active Veteran medical registrations across Canada.
About Canada House Wellness Group
Canada House Wellness Group is the parent company of Abba Medix Corp., a Licensed Producer in Pickering, Ontario that produces high quality medical grade cannabis; IsoCanMed Inc., a Licensed Producer in Louiseville, Québec growing best-in-class indoor cannabis, in its 64,000 sq. ft. production facility employing state-of-the-art vertical, aeroponic production methodologies; Canada House Clinics Inc., with clinics across the country that work directly with primary care teams to provide specialized cannabinoid therapy services to patients suffering from simple and complex medical conditions; and Knalysis Technologies, a provider of fully customizable, cloud-based software that links physician, provider, and patient to data that supports treatment with medical cannabis.
Canada House Wellness Group’s goal is to become the leading cultivator of premium craft cannabis and provider of cannabinoid therapy, targeting the medical cannabis markets globally. Please visit www.canadahouse.ca or the Company’s public filings at www.sedar.com.
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 October 17, 2018 and October 17, 2019; 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.
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