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Canada House Wellness Group Reports First Quarter Fiscal Year 2019 Results
49% Increase in Revenue compared to the same Period in the Prior Year
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TORONTO, Oct. 01, 2018 (GLOBE NEWSWIRE) -- Canada House Wellness Group Inc. (CSE: CHV) (“Canada House” or the “Company”) is pleased to report its financial results for the three months ending July 31, 2018. All amounts are stated in thousands of Canadian dollars.
- Cash position was $5,844 compared to $8,953 as at April 30, 2018. During the quarter, a $588 licensing fee was paid to Medicine Man Technologies, capital expenditures on the production facility were $379 and working capital declined by $931
- Working capital was $4,491 compared to $6,670 as at April 30, 2018
- Revenue for the three months ending July 31, 2018 was $1,231, an increase of $405 or 49% compared to $826 in the prior year
- EBITDAS (1) for the three months ending July 31, 2018 was a deficit of ($906) during the three months ending July 31, 2018, a 15% improvement compared to ($1,060) in the prior year
- Loss and Comprehensive loss for the year was ($2,028) for the three months ending July 31, 2018 compared to ($1,580) for the same period in the prior year
(1) “EBITDAS” is comprised of Loss and Comprehensive Loss for the Year plus Depreciation and amortization plus Interest, Taxes, Impairment and Stock Based Compensation. EBITDAS is considered by the Company to be a useful measure of cash-flow from operations.
“The increase in revenue compared to the same quarter last year shows our medical cannabis clinic model is working,” says Chris Churchill-Smith, CEO. “During the last few months we have increased clinic efficiency and expect to make further improvements as a result of our proprietary clinic software resulting in further and sustained growth to our patient base. We have expanded the number of Licensed Producers servicing our clients and will soon be able to offer our own brand of cannabis tailored to their individual needs which will dramatically improve Canada House’s profitability on a go-forward basis.” concludes Mr. Churchill-Smith.
Business Highlights for the Quarter:
- Appointed a new President of Marijuana for Trauma (“MFT”)
- Abba Medix Corp. (“Abba”) completed its Health Canada pre-sales inspection and received an amendment to its Producer’s Licence from Health Canada to include the sale and provision of cannabis seeds
- Through its wholly owned subsidiary Abba Medix Corp., entered into an exclusive licensing agreement with Medicine Man Technologies Inc. for deployment of its intellectual property and product lines (Three a Light®, Success Nutrients®, General Intellectual Property) into the Canadian marketplace.
- Signed a Memorandum of Understanding (MOU) with The University of New Brunswick (UNB) to provide researchers with opportunities to pursue the health benefits of cannabis.
- Abba Medix Corp. (“Abba”) subsidiary planted its first crop of high grade medicinal cannabis seeds at the Company’s Health Canada Licensed (LP) Pickering grow facility. Eight strains were chosen for this first planting to meet the medicinal needs of its sister firm Marijuana for Trauma (“MFT”) and their thousands of clients across Canada.
Canada House Wellness Group Inc.
Canada House is the parent company of Marijuana for Trauma Inc., Knalysis Technologies and Abba Medix Corp. The Company's goal is to become a marketplace leader through strategic partnerships, mergers, and acquisitions to create a fully integrated cannabis therapy company. For more information please visit http://www.canadahouse.ca or www.sedar.com.
For further information, please contact:
Boom Capital Markets
Canada House Wellness Group Inc.
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 legal for recreational use by October 17, 2018; 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.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.