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Sunniva Provides Update On California Operations

Vlad Poptamas

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Sunniva Inc. (“Sunniva”, the “Company”, “we”, “our” or “us”) (CSE: SNN) (OTCQB: SNNVF), a North American provider of cannabis products and services, today provided an operational update and outlook for its U.S. operations.

Sunniva California Campus

The Company has recently been advised by our general contractor that connection of certain utilities to the glasshouse in Cathedral City, California have been delayed for several months. In addition, the longer than expected time to closing of the sale of Sunniva Medical Inc. to CannaPharmaRx, Inc. has limited the amount of cash available for the ongoing funding of the glasshouse which has created additional delays in the current schedule.  The expected date for onboarding of genetic material and plants for phase one of the 325,000 square foot Sunniva California Campus is now anticipated to be early 2020. The developer and Sunniva have been disappointed with the overall progress of the glasshouse. As a result, the parties have reorganized the project management team and have engaged an internationally recognized construction consulting firm to manage the project through the final stages of construction and commissioning of the facility. Both parties believe that these changes will greatly influence the ability to achieve the revised estimated time to completion.

“Today’s announcement of the deferral of our previously planned operational date is disappointing, however, we do not feel that this setback will have an impact on the long term value that may be created from the glasshouse and we remain confident that the cannabis grown in this facility will be of the highest quality in the industry.” said Dr. Anthony Holler, CEO of Sunniva.

Branded Cannabis Product Sales

The Company has been prioritizing available capital towards the completion of the glasshouse and as a result has reduced the amount of cash allocated to the purchase of biomass for use in the Company’s Extraction Facility and to the purchase of third party flower to be used in branded cannabis sales. As a result of this decision, the Company will not achieve its previously announced 2019 revenue estimate of USD$55$60 million from sales of Sunniva branded products.

Preliminary Q2 2019 Revenue

The Company is announcing preliminary revenue of $5.3 million for the three-month period ended June 30, 2019. This represents an 18% increase over the $4.5 million in revenue generated in the comparative three-month period from 2018. At the end of June 30, 2019, the Company had generated approximately $19.5 million in revenue in 2019.  Gross profit margin for the second quarter of 2019 is expected to be a loss of approximately $1 million primarily due to the lower sales of cannabis products in California, while continuing to bear the fixed operational costs of the respective facilities.

“We are pleased with the performance of our operations in the first half of the year. The $19.5 million in revenue is greater than the total revenue generated in all of 2018.” Said Kevin Wilkerson, President of Sunniva, Inc. “We have demonstrated our ability to produce large volumes of cannabis products and combined with our distribution and packaging capabilities, we have been able to successfully deliver that product into the California market.”

Further information regarding the revised timeline for expected completion of the Sunniva California Campus and an updated financial outlook for the remainder of fiscal 2019 will be provided in the Q2 2019 Earnings Release.

Q2 2019 Earnings Release Date

The Company plans to release financial results for the second quarter 2019 and provide a corporate update on its Canadian and U.S. operations, after market close on Thursday August 29, 2019.

The Company’s executive management will discuss the results during a conference call on Thursday, August 29, 2019 at 5:00 pm Eastern Time / 2:00 pm Pacific Time.  To participate in the call please dial 1-800-319-4610, or (604) 638-5340.  An audio replay will be available shortly after the call by dialing 1-855-669-9658 or (604) 674-8052 and entering code 3557.  The replay will be available for two weeks following the call.

For more information please visit: www.sunniva.com.

To be added to the Sunniva email distribution list please register at www.sunniva.com/email-alerts.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

SOURCE Sunniva Inc.

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Cannabis

Flower One’s Second Quarter Highlighted by Industry Leading Cultivation Performance

Vlad Poptamas

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Flower One Holdings Inc. (the “Company”) (CSE: FONE) (OTCQX: FLOOF), a leading cannabis cultivator, producer and innovator in Nevada, today reported its financial and operating results for the second quarter ended June 30, 2019. All amounts are expressed in U.S. dollars unless indicated otherwise.  Now operating in a state of ongoing weekly harvests following the completed conversion of its Nevada greenhouse and its inaugural harvest announced on June 11, 2019, the Company confirmed today that its second quarter financial and operational performance has resulted in a cultivation yield performance of 38.3 grams per square foot, per harvest cycle, at an average cost per gram of $0.45.

In addition, the Company announced that it has completed an initial harvest in all eight of its flower zones and has commenced harvesting of its second cycle of planted cannabis.   The success of its cultivation performance through the second quarter has resulted in a year-to-date tenfold increase of the Company’s biological assets and inventory to $56.1M further strengthening its balance sheet. At the quarter end, the Company held more than 14,000 pounds of dry cannabis inventory. Flower One’s dry cannabis will now transition to the Company’s 55,000 square-foot production facility to generate a wide variety of the most in demand cannabis products and brands from across the United States.

“Achieving a cultivation yield performance of 38.3 grams per square foot and doing so at a cost of $0.45 per gram, firmly establishes us as one of the leading large-scale cannabis cultivators in North America and the world,” said President and CEO, Ken Villazor.

“We are extremely proud of these results and what they signal not only for the future of Flower One, but also for our ever-expanding brand and retail partner portfolio, and valued shareholders. This clearly demonstrates our ability to fulfill our promise of providing the industry’s first seed-to-shelf solution for cannabis brands and retailers,” added Kellen O’Keefe, Chief Strategy Officer.

Other Q2 highlights:

  • Entered eighth brand partnership – plus three more subsequent to the quarter;
  • Obtained debt financing of up to $30 million to accelerate market roll-out;
  • U.S. trading upgraded to OTCQX Best Market from OTCQB in May.

Second quarter financial results

The Company’s operational activities during the quarter largely focused on advancing the conversion of its 455,000 square foot greenhouse and production facility for cultivating high-quality cannabis at scale which was completed during the quarter.

The Company recorded cannabis inventory of $25.4 million and biological assets of $30.6 million as a result of the cultivation activities during the six months ended June 30, 2019.  Additionally, the Company invested $41.0 million in property, plant and equipment primarily for the Nevada greenhouse facility.

Revenue for the quarter was $636 thousand. The Company began recording revenue on November 9, 2018 subsequent to the acquisition of the assets of NLVO. As such, there was no revenue for the comparable period of 2018. All revenue for the quarter was from the NLVO operations. The Company expects to begin earning revenue from the sale of products from its the flagship greenhouse facility starting in the third quarter.

Net income was $19.1 million mainly driven by a fair value gain of $37.3 million on the growth of biological assets, partially offset by cost of goods sold of $844 thousand and $1.8 million in losses related to fair value adjustments on derivative liabilities, $461 thousand in share-based compensation, $3.1 million in finance expenses, $796 thousand in foreign exchange loss related to the convertible debenture, derivative liabilities and the Company’s cash balances held in Canadian dollars, $3.7 million in general and administrative expenses, and tax expense of $7.9 million mainly related to the fair value gain on the growth of biological assets.

As at June 30, 2019, Flower One had working capital of $41.9 million compared to a working capital deficit of $32.9 million at December 31, 2018.

Flower One’s 2019 second quarter financial statements and management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on August 13, 2019 and will be available on the same day on Flower One’s website at www.flowerone.com/investors/financial-reports.

Notice of conference call

Management of Flower One will host a conference call at 8:30 a.m. ET on Wednesday, August 14, 2019 to review recent and upcoming milestones. You can join the call by dialing 647-427-7450 or 1-888-231-8191. Please dial 647-427-7450 or 1-888-231-8191 approximately 15 minutes prior to the call to secure a line. You will be put on hold until the conference call begins. A replay of the conference call will also be available until Wednesday, August 28, 2019. To access the archived conference call, please dial 1-855-859-2056 and enter the conference code 2435459.

A live audio webcast of the call will be available at http://bit.ly/FONE2019Q2. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

 

SOURCE Flower One Holdings Inc.

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Cannabis

Namaste Technologies Announces Changes to Board of Directors

Vlad Poptamas

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Namaste Technologies Inc. (“Namaste” or the “Company”) (TSXV: N) (FRANKFURT: M5BQ) (OTCMKTS: NXTTF) today announced that Kenneth Ngo, the Company’s Chief Financial Officer, has stepped down from the Board of Directors effective immediately.

“I wish to thank Kenneth for stepping onto the Board of Directors in December 2018 as we reshaped the Company.  With the addition of Ken Jones and Andy Wilczynski, who can provide financial expertise to the board, Kenneth has decided to step down as a board member” said Meni Morim, Interim CEO of Namaste Technologies.

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Cannabis

The Green Organic Dutchman Reports Q2 2019 Results

Vlad Poptamas

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The Green Organic Dutchman Holdings Ltd. (the “Company” or “TGOD”) (TSX: TGOD) (US: TGODF) is pleased to report its financial and operational results for the three and six months ended June 30, 2019. These filings are available for review on the Company’s SEDAR profile at www.sedar.com.

Q2 Highlights:

The Company:

  • Is nearing completion of construction at its Hamilton site and Phase 1 at its Valleyfield site, with investment amounting to $53.1 million in the second quarter of 2019, bringing the total additions year to date to $100.9 million.
  • Achieved revenues of $2.9 million, a 20% increase over the prior quarter derived primarily from Europe. In Canada, the Company launched its pilot “Grower’s Circle”, which included sales to a small number of medical patients to test the market and the Company’s distribution capabilities. The Company launched two new products in Q2 and expects to start a similar pilot in the Ontario recreational market during Q3-2019.
  • Experienced a net loss of $16.6 million for Q2-2019. Management continued to maintain a disciplined approach to operational costs as it prepares for commercialization of its products in Canada and internationally.

Other key updates in the quarter

The Company:

  • Announced provincial board supply agreements with Alberta Cannabis and BC Cannabis Stores, expanding its footprint in Western Canada.
  • Achieved its organic certification for the Valleyfield facility from Pro-Cert, an internationally recognized organic certification organization.
  • Signed a distribution agreement with Mediakos UG haftunsbeschraenkt to be the exclusive distributor of CannibiGold, HemPoland’s premium hemp CBD brand, for the German pharmacy market. In addition, the Company launched its Global Strategic Hemp Division.
  • Entered into a multi-year agreement with Neptune Wellness Solutions Inc. for extraction, formulation and packaging services. As part of the agreement, the Company will have exclusivity on extraction, formulation and packaging of certified organic products within and for the Canadian market.

Investor conference call to discuss second quarter results 

Management will host a conference call tomorrow at 9:00 a.m. Eastern Time to discuss the results. Participants may access the call by dialing 416-764-8688 (Toronto) or 1-888-390-0546 (North America); Conference ID 37027015. For those unable to participate on the live call, a playback will be available for one week after the conference call using this URL:
https://event.on24.com/wcc/r/2045003/C17F2A331332C2718597218C3F00D7C9.

Management Commentary

“Q2 was pivotal for the Company as we began commercial production in the second phase of our Hamilton site and expanded our product line for the Grower’s Circle,” commented Brian Athaide, CEO of TGOD. “The product quality feedback from the Grower’s Circle has been overwhelmingly positive, confirming that patients appreciate having access to premium certified organic cannabis, an underserved segment of the market.  With double digit quarterly growth in Europe and construction nearing completion in Canada, the team continues to deliver on our ambitious business plan with executional excellence.  We now have our first purchase order from the OCS in hand and look forward to shipping our first recreational sales this week,” continued Athaide.

 

SOURCE The Green Organic Dutchman Holdings Ltd.

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