- Expects to generate revenue from letter of intent with the Société québécoise du cannabis by end of February or early
Q1 2021 OPERATIONAL HIGHLIGHTS
- The Company's primary focus has been on the key items necessary to prepare the Company to begin generating commercial revenue: cultivation and post-harvest activities; building its brand portfolio; and readying inventory to begin shipping its dried flower products across the province of Quebec.
- On
November 27, 2020 , Cannara signed a one-year wholesale supply agreement under which it agreed to sell 200 kg of cannabis per month to another licensed producer, beginningJanuary 1, 2021 . - During Q1 2021, Cannara met the revenue threshold required to gain access to an additional
$4 million in credit under its current facilities. During the quarter, the Company drew down$1 million on its credit facilities and intends to draw down monthly to support cash flows until anticipated revenue from sales operations commences, expected in February orMarch 2021 .
HIGHLIGHTS SUBSEQUENT TO QUARTER END
- On
January 8, 2021 ,Cannara Biotech (Québec ) Inc., a wholly owned subsidiary of Cannara, announced it had received its amendment to its licence to allow the Company to sell dried cannabis products to provincial retail distributors. The Company now has the necessary licences to begin the delivery of cannabis products to the Société québécoise du cannabis ("SQDC") under its existing letter of intent. - During
January 2021 , the Company completed its first shipment of 201.61kg of dried cannabis to its wholesale partner under a one-year supply agreement. - Following a lease agreement signed on
November 30, 2020 , and beginning onJanuary 1, 2021 , an existing tenant occupied the last remaining space unutilized by the Company at itsFarnham facility. The leasing of unoccupied areas of the facility is a strategy designed to generate additional revenue and to maximize returns on the overall facility.
"Through the end of Q1 2021, we set out to build products and an operational foundation to prepare for both near-term growth in 2021 as well as to support the sustained future growth of our company," said
RESULTS OF OPERATIONS
For the three-month period ended
As part of the Company's capital management strategy, the Company has leased out a significant portion of the currently unoccupied space in the Farnham Facility. As at
For the three-month period ended
The Company has a working capital of
OUTSTANDING SHARES
As at the date of this report, the Company had 737,839,535 common shares and 39,389,502 stock options issued outstanding.
For further information, the complete condensed interim consolidated Financial Statements and Management's Discussion and Analysis for the three-month period ended
About Cannara Biotech Inc.
The CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding "Forward-Looking" Information
This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE
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