August 30th, 2017
News, Top News
TORONTO, Aug. 30, 2017 (GLOBE NEWSWIRE) — WeedMD Inc. (WMD.V) (“WeedMD” or the “Company”), a federally licensed producer and distributor of medical cannabis, is pleased to announce its financial results for the period ended June 30, 2017, and to provide a corporate update.
Second Quarter 2017 Milestones:
“WeedMD is achieving every initiative provided to shareholders either on or ahead of schedule – a testament to our team that is committed to the success of the Company. We are hitting all of our licensing milestones, generating strong yields, maintaining costs in line with our budget and producing product that is exceeding our patients’ expectations. We are building our business and look forward to continuing to deliver value for all of our shareholders,” said Bruce Dawson-Scully, CEO of WeedMD.
- Public listing on the TSX Venture Exchange on April 27th (see here): Commencement of trading on the TSX Venture Exchange under the ticker symbol “WMD” after a successful completion of the reverse take-over of Aumento Capital V Corporation.
- Sales license secured on April 28th (see here): WeedMD’s 25,620 sq. ft. indoor production facility in Aylmer, Ontario, is operating at full capacity and is currently on track to produce in excess of 1,200 kg of dried cannabis per annum. Yields and costs are consistently improving with each harvest. Patient registration officially began on May 31st (see here) and the Company has since been steadily increasing its patient base and sales.
- Selling clones to home grow patients under ACMPR on June 13th (see here): The Company is currently offering several strains for patients opting to grow their own medicinal cannabis and has structured its pricing to provide reasonable and affordable access to a variety of medical cannabis strains. WeedMD has developed and successfully rolled out a proprietary system for packaging and shipping live cannabis plants to patients.
- Partnership with Van der Pop to bring leading female-focused brand to Canada on June 15th (see here): This partnership brings WeedMD further along its strategic path of targeting unique and underserved demographics of the Canadian cannabis market. The Company expects to deliver medical cannabis under the Van der Pop brand to its Canadian patients starting in late 2017. Patients eager to interact with Van der Pop are encouraged to visit Tokyo Smoke’s new flagship location on Queen West, in Toronto, where Van der Pop merchandise is being prominently displayed (see here).
- License to produce cannabis oils secured on June 19th (see here): Since receiving an oil production license, WeedMD has successfully imported and commissioned a purpose-built high-throughput ethanol extraction machine from Germany and has already produced, packaged and tested several batches of oil.
- Acceleration of production and strain development: During the quarter, WeedMD successfully continued the ramp up and calibration of its operations, resulting in steadily increased production with decreased associated costs per gram. WeedMD also spent time developing its extensive genetic bank, with several new strains developed this quarter with the intention of making them commercially available throughout the remainder of 2017.
- WeedMD generated $235,659 of revenue in its first quarter of sales. Revenues were derived primarily from the sale of dried medical cannabis and live cannabis plants. The Company received its license from Health Canada to sell medical cannabis under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) on April 28, 2017, and most of these sales occurred in June.
- Adjusted operating loss in the quarter was ($1,280,046), as compared to ($1,070,369) in the prior quarter. The increase in adjusted operating loss is due to an increase in production and headcount, additional expenses associated with being a public company, and costs associated with the launch of patient services and marketing due to the commencement of sales. Adjusted operating loss is a non-IFRS measure which has been implemented to remove non-cash and non-recurring expenditures to provide a better indication of ongoing performance.
- Cash of $3,968,371 at the end of the period, and Working Capital of $6,501,897.Management believes the Company has sufficient working capital to maintain its existing operations through the summer of 2018.
“Momentum in Q2 is being carried into Q3 with WeedMD continuing to execute towards its vision of becoming a leader in niche and underserved seniors and female demographics within the burgeoning Canadian cannabis market,” said Bruce Dawson-Scully. “We are leveraging management’s deep industry expertise and relationships in the seniors, assisted-living and long-term care industries. The Company is making significant strides in securing initial supply contracts in long-term care with our proprietary integrated care program. In addition, the Company is working on a very compelling expansion opportunity to position the company strategically ahead of the future adult-use market.”
For more information on WeedMD, access our investor presentation on our website here.
This press release should be read alongside WeedMD’s unaudited Financial Statements and Management’s Discussion and Analysis Report, which can be found under the Company’s profile at www.sedar.com. WeedMD’s unaudited Financial Statements and Management’s Discussion and Analysis Report have been filed with Canadian Securities Regulators.
About WeedMD Inc.
WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of medical cannabis pursuant to the Access to Cannabis for Medical Purposes Regulations (ACMPR). WeedMD operates a 26,000-square foot, scalable production facility in Aylmer, Ontario with four acres of property for future expansion. WeedMD is focused on providing consistent, quality medicine to the long-term care and assisted living markets in Canada through its comprehensive platform developed exclusively for that industry. WeedMD is dedicated to educating healthcare practitioners and furthering public understanding of the role medical cannabis can play as a viable alternative to prescription medication in relieving a variety of chronic medical conditions and illnesses.
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This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon WeedMD’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy. Forward-looking information include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD’s Management Discussion and Analysis for the six-month period ended June 30, 2017 and filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in WeedMD’s Management Discussion and Analysis could cause actual events or results to differ materially from those described in any forward-looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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