Revenues for the three and nine month periods ended September 30, 2017 were $6,140,224 and $13,714,847 respectively compared to $786,915 and $2,286,095 in the comparable 2016 periods. Net Income for the three and nine month periods ended September 30, 2017 were $655,309 and $632,269 respectively compared to a net loss of ($3,056,303) and ($5,359,845) respectively in the comparable 2016 periods.
2017 Third Quarter Highlights
- Record Revenues of $6.1M in Q3 2017, a 680% increase from the comparable prior year period
- Positive Net Income and Adjusted EBITDA
- Active patients increased to more than 31,000 compared to 4,700 in the comparable prior year period and 20,000 in the immediately preceding quarter ended June 30, 2017
- Cannabis extracts increased to over 61% of sales in the quarter
- Cannabis extraction capacity increased to 1.2 million bottles of oil per annum
- Average net selling price per gram of $8.78, an increase of 63% from the comparable prior year period
- Reduced cash cost per gram to $1.211 compared to $1.49 in the prior quarter
1- Costs to harvest (from cloning to harvest) - includes all cash operating costs (primarily growing labour, utilities, grow nutrients and rent).
Developments subsequent to the Quarter
- Current sales exceeding $2.3 million per month
- Increased active patients to over 35,000
- Received a Health Canada Cultivation Licence under the ACMPR for our completed 250,000 square foot Phase 1 redevelopment of our 430,000 square foot Niagara Greenhouse Facility. Phase 1 was completed both on budget and on time
- Completed our first harvest from our Niagara Facility and full utilization from Phase 1 is expected in December 2017
- Increased our inventory storage capacity by approximately $93 million with the addition of three Level Nine Vaults at the Niagara Greenhouse Facility
- The planned Phase 2 expansion at the Niagara Facility is anticipated to be completed and in cultivation towards the middle of 2018. Phase 1 and 2 should conservatively provide the Company with an additional 40,000 kilograms of annual growing capacity
- Reached an agreement with a syndicate of underwriters pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 3,500,000 common shares of the Company, at a price of $5.00 per Common Share for aggregate gross proceeds to the Company of $17.5 million. The Company has also granted the Underwriters an Over-Allotment Option to purchase up to 500,000 additional Common Shares of the Company on the same terms as the Offering. The Underwriters have advised the Company that they will be exercising the Over-Allotment Option in full so that the aggregate gross proceeds of the Offering will be $20 million
- Arranged for a $15 million non-revolving demand loan on the Niagara Greenhouse Facility. The terms presented to the Company remain subject to the lender's credit committee approval
- The non-revolving demand loan financing together with the bought deal Offering will fully fund the Company through the Phase 2 expansion at the Niagara Greenhouse Facility as well as provide funds for general and working capital purposes
- Received Health Canada approval to export medical marijuana internationally to Countries where medical marijuana is legalized and the Company began shipping to Australia. Australia is the first of many markets that the Company is expecting to supply. Other countries that we anticipate shipping to shortly are Germany, Denmark and Brazil
- Announced plans for the joint development of vapor products with Gilla Inc.
- Strengthened our Management Team with the addition of a VP of Marketing
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