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Radient Technologies Inc. Reports Second Quarter 2019 Financial Results and Provides Corporate Update
EDMONTON, Alberta, Nov. 28, 2018 (GLOBE NEWSWIRE) -- Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture: RTI) announced today that it has released its financial results for the second fiscal quarter ended September 30, 2018. The reviewed financial statements and Management’s Discussion & Analysis are available at www.SEDAR.com.
Radient’s balance sheet remains strong, with a cash balance of $43.1M and a working capital of $43.5M as of September 30, 2018. This was largely due to the closing of the bought deal financing for $24.8M led by Canacccord Genuity Corp., including GMP Securities LP and Laurentian Bank respectively. In addition, the Company also closed a non-brokered private placement for an additional $9.4M. This was done at a price of $1.20 per unit.
With a strengthened balance sheet, the Company is well positioned to execute on its previously announced business developments, which include physical and operational expansions in both Europe and Canada (summarized in the “Post-Reporting Events and Corporate Update” below).
Subsequent to the second fiscal quarter, on October 29th, 2018, the Company was approved for graduation to “Tier 1 Issuer” status from its prior status as a “Tier 2 Issuer” by the TSX Venture Exchange (the “TSXV”). Under the policies of the TSXV, Tier 1 is the premier tier of the TSXV and is reserved for its most advanced issuers with the most significant financial resources.
Post-Reporting Events and Corporate Update:
Cannabis and Hemp Extraction:
In advance of the Company receiving its Standard Processor License (the “License”) from Health Canada, Radient has been optimizing its extraction platform, which includes the next generation of its proprietary MAP™ microwave technology, using industrial-scale volumes of cannabis. This optimization process will leave Radient in a stronger position of readiness once the Company is in receipt of its License.
Radient also announced on November 5th, 2018 that it has begun the development of a new Edmonton-based Manufacturing Facility (the “New Facility”) of over 100,000 square feet, to be built on the additional land adjacent to its Manufacturing Facility at 4035 101 St NW, Edmonton, which the Company acquired in May, 2018. This New Facility will be dedicated to cannabinoid extraction and product development, and is expected to be complete in 2020. The New Facility will be capable of processing estimated throughputs of more than 1 metric ton per day of medical cannabis and more than 10 metric tons per day of industrial hemp.
CBD from Hemp:
In addition, the Company announces today that it will be retrofitting a portion of its existing Operational Manufacturing Facility (the “Operational Manufacturing Facility”) located at 4035 101 St NW, Edmonton, exclusively for the processing of industrial hemp. Completion of the retrofitting of the Operational Manufacturing Facility is expected in Q2, 2019. The expected throughputs for the retrofitted Operational Manufacturing Facility will be more than 1.5 metric tons of industrial hemp per day.
German Manufacturing Facility:
On November 5th, 2018, the Company announced that it would be building a brand-new German processing facility (the “German Manufacturing Facility”), which is expected to be production ready in 2020. The German Manufacturing Facility is expected to be capable of processing throughputs of more than 1 metric ton per day of medical cannabis and more than 10 metric tons per day of industrial hemp.
Licenses from Health Canada:
On October 9th, 2018, Radient announced it had received its Controlled Drugs and Substances License (the “Dealer’s License”) for its Manufacturing Facility located at 4035 101 St NW in Edmonton, Alberta. The Dealer’s License allowed Radient to receive shipments of cannabis biomass from Canadian Licensed Producers for the purpose of research and analytical testing at its Manufacturing Facility.
On November 20th, 2018 the Company announced it had received its Confirmation of Readiness Letter (the “COR”) from Health Canada for its Manufacturing Facility located at 4035 101 St NW in Edmonton, Alberta. Receipt of the COR Letter demonstrated that Radient had met Health Canada’s initial license requirements. Upon approval by Health Canada that the Company’s Manufacturing Facility is fully functional and compliant under the Cannabis Act and the Cannabis Act Regulations, the Company will be granted its Standard Processor’s License, at which point it will be permitted to begin extracting cannabinoids for the purpose of sale to federal license holders. The Manufacturing Facility is fully production-ready, with Radient having sent its evidence package to Health Canada on November 24th, 2018. The Company will keep shareholders informed of further developments.
Health and Wellness Joint Arrangement:
On October 16th, 2018, Radient announced it had entered into a Joint Arrangement (the “Arrangement”) with Grupo Natac S.L. (“Natac”), a biotech company with more than 20 years of experience in processing plant-based ingredients in the nutraceutical and pharmaceutical space. The Arrangement pertained to the formation of Natac Solutions, a global entity based in Madrid, Spain. The companies entered into a binding letter of intent that saw a portion of Radient’s Health & Wellness Solutions business folded into the joint arrangement along with a portion of Natac’s existing business. The Arrangement will allow Radient to increase its market presence in Europe while also de-risking its financial obligations, and giving the Company access to additional science, clinical research and manufacturing assets. To learn more about Natac please visit https://www.natacgroup.com/en/.
Provisional Patent Applications and Partnerships:
On October 29th, 2018, Radient announced it had filed 18 provisional patent applications with the U.S. Patent and Trademark Office (the “USPTO”) for innovation related to methods, systems, and apparatus for improving the efficiency, purity, quality, and yield of biomass extraction, especially biomass and compositions related to cannabis.
On November 19th, 2018, the Company announced that it had filed an additional 13 provisional patent applications with the United States Patent and Trademark Office (the “USPTO”) for inventions related to methods and systems for improving the efficiency, accuracy, and security of supply chain tracking for extractable biomass, especially cannabis biomass. The Company also announced it had entered into a Facilities Access and Technical Services Agreement (the “Agreement”) with France-based Processium, a company that specializes in process design, development and optimization for the chemical, pharmaceutical and biotech industries.
These provisional patent applications complement the provisional patent filed by Radient in June 2018 for methods related to nicotine extraction, bringing the total number of provisional patent applications filed by Radient with the USPTO in 2018 to 32.
New Logo and Branding:
Radient has changed its logo and branding to reflect the evolution of the Company and its growing business operations. The new logo has been included in the header of this Press Release as well as the MD&A, and will be rolled out across Radient’s social media platforms and website today. The Company is also finalizing a new website to better reflect its business operations. The new website will be launched in the coming weeks.
Stock Options Plan:
As of November 28th, 2018, the Company announced the grant of 9,840,000 incentive stock options to employees, directors, and consultants pursuant to the Company’s Stock Option Plan. The options are exercisable for a period of 5 years at a price of $0.87 per share.
Radient extracts natural compounds from a range of biological materials using microwave assisted processing (“MAP™”), a patented technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its 23,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, and personal care markets. Since 2016, Radient has expanded its offerings to enter the cannabinoids market utilizing its MAP™ platform to process and extract cannabinoids including cannabidiol and tetrahydrocannabinol from cannabis biomass. Visit www.radientinc.com for more information.
SOURCE: Radient Technologies Inc.
Denis Taschuk, Chief Executive Officer, email@example.com,
Prakash Hariharan, Chief Financial Officer, firstname.lastname@example.org,
Caitlin Cheadle, Director of Communications, email@example.com
Forward Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations; the Company’s ability to obtain the Standard Processor’s License and other applicable licenses; the impact that additional funding will have on the Company’s business; the Company’s ability to expand its operations in Europe and Canada; the Company’s ability to grow its business in the cannabis sector and the Company’s future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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.