THC BioMed Releases Year End Results

THC BioMed Releases Year End Results

PR Newswire

VANCOUVER, BC, Nov. 13, 2020

THC - CSE
THCBF - OTC 
TFHD – F

VANCOUVER, BC, Nov. 13, 2020 /PRNewswire/ -- THC BioMed Intl Ltd. (CSE: THC) ("THC BioMed" or the "Company") is pleased to report its financial results for the fiscal year ended July 31, 2020.

THC BioMed Intl Ltd. Logo

Annual Highlights:

 

STATEMENT OF COMPREHENSIVE INCOME (LOSS) SUMMARY




July 31


July 31



2020


2019






Revenue

$

4,178,179

$

1,489,603

Cost of sales


(3,074,092)


(1,502,452)

Gross profit before fair value adjustments


1,104,087


(12,849)

Net change in fair value of biological assets


2,139,877


1,515,266

Gross margin


3,243,964


1,502,417

Total expenses


3,405,554


14,201,764






Net and comprehensive loss for the year

$

(161,590)

$

(12,699,347)







BALANCE SHEET SUMMARY



As at

July 31

2020

July 31

2019






Current assets

$

8,039,001

$

5,217,996

Total assets

$

21,774,654

$

18,058,337

Current liabilities

$

5,569,427

$

3,290,724

Total liabilities

$

6,901,682

$

4,603,731

Working capital

$

2,469,574

$

1,927,272

Accumulated deficit

$

27,309,521

$

28,400,635




CASH FLOW STATEMENT SUMMARY




July 31

2020


July 31

2019






Net and comprehensive loss for the year

$

(161,590)

$

(12,699,347)

Cash, end of the year

$

751,459

$

991,155




NON-IFRS EARNINGS MEASURE




July 31

2020


July 31

2019






Net and comprehensive loss for the year

$

(161,590)

$

(12,699,347)

Add back





Interest


314,237


74,616

Depreciation and amortization


1,014,356


604,692






EBITDA(1) from continuing operations


1,167,003


(12,020,039)

Accretion expense on convertible debentures


26,513


-

Fair value of earn out shares to be issued


-


3,377,877

Financing fees


-


4,458,153

Realized fair value changes in biological assets included in inventory sold


1,269,559


175,055

Share-based compensation


698,494


3,903,587

Unrealized gain on changes in fair value of biological assets


(3,409,436)


(1,690,321)






Adjusted EBITDA(1)

$

(247,867)

$

(1,795,688)



(1)

These non-IFRS measures are defined in the Company's MD&A for the year ended July 31, 2020.

MANAGEMENT COMMENTARY

"Sales in Q4 improved over sales in Q3 due to the quantity of product sold. The overall selling prices for cannabis in the retail market are lower, putting pressure on Licensed Producers to improve production efficiencies. Although the quarter ended July 31, 2020 resulted in a loss of $642,989, for the year ended July 31, 2020, the net and comprehensive loss was $161,590. Our focus now is on production of our cannabis beverage shot, THC Kiss, and our Pure Cannabis Sticks which will improve our gross margin," said THC BioMed President & CEO, John Miller.

All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. This press release is intended to be read in conjunction with the Company's Audited Consolidated Financial Statements and Management's Discussion & Analysis for the year ended July 31, 2020, which has been filed on SEDAR (www.sedar.com).


SUMMARY OF QUARTERLY RESULTS









Quarter Ended


Revenue

Net
Income (Loss)


Income (Loss)
Per Share










Q4/2020

July 31, 2020

(1)

$

990,940

$

(642,989)

$

(0.01)

Q3/2020

April 30, 2020

(1)

$

896,104

$

(295,717)

$

-

Q2/2020

January 31, 2020

(1)

$

1,246,625

$

88,191

$

-

Q1/2020

October 31, 2019

(1)

$

1,044,510

$

688,925

$

0.01

Q4/2019

July 31, 2019


$

382,096

$

(4,177,572)

$

(0.04)

Q3/2019

April 30, 2019


$

354,326

$

(4,905,797)

$

(0.03)

Q2/2019

January 31, 2019


$

474,041

$

(4,722,819)

$

(0.04)

Q1/2019

October 31, 2018


$

279,140

$

1,106,841

$

0.01

(1)

Includes excise taxes

For the quarter ended July 31, 2020, we produced 913.0 kilograms of dried marijuana and sold 238.7 kilograms at an average selling price of $3.33 per gram reflecting overall lower selling prices in the retail market.

Q4 HIGHLIGHTS

HIGHLIGHTS SUBSEQUENT TO JULY 31, 2020

ABOUT THC

THC BioMed is a small batch Cannabis Act Licensed Producer of medical and recreational cannabis. It is licensed to cultivate and sell dried, extract, edible and topical cannabis. The Company is on the leading edge of scientific research and the development of products and services related to the cannabis industry.

Please visit our website for a more detailed description of our business and services available. www.thcbiomed.com 

Forward-Looking Information:

This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of THC BioMed Intl Ltd. ("THC"). Forward-looking information is based on certain key expectations and assumptions made by the management of THC. In some cases, you can identify forward-looking statements by the use of words such as "will," "may," "would," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "could" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release are made as of the date of this press release and include that THC will focus now on production of THC Kiss and Pure Cannabis Sticks. Although THC believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because THC can give no assurance that they will prove to be correct. THC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.

Contact: President and CEO, John Miller, THC Biomed Intl Ltd., T: 1-844-THCMEDS, E: info@thcbiomed.com 

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