TORONTO, May 31, 2021 /CNW/ - 48North Cannabis Corp. ("48North" or the "Company") (TSXV: NRTH), a brand-led, vertically integrated Licensed Producer focused on manufacturing an expansive portfolio of high quality, accessibly priced products available across the country, has released its financial and operating results for the third quarter ended March 31, 2021. The Company's financial statements and related management discussion and analysis for the period are available on the Company's SEDAR profile at www.sedar.com and on the Company's website at www.48nrth.com/investors.
Financial and Operating Highlights for Fiscal Q3 2021
On May 17, 2021, the Company and Hexo Corp. ("Hexo") entered into a definitive arrangement agreement whereby Hexo will acquire all of 48North's issued and outstanding common shares in an all-share transaction valued at approximately $50 million on an enterprise value basis.
Quarterly revenue of $5.2 million, representing a 94 per cent year-over-year increase over third quarter 2020 revenues of $2.6 million.
Adjusted EBITDA1 loss for the quarter was $7.7 million compared to a loss of $6 million in Q3 2020.
Closed on April 16, 2021 an overnight marketed public offering for total gross proceeds of approximately $5.4 million.
The Company launched seven new SKUs during the quarter and the SKUs have experienced high-demand from both retailers and consumers.
Ceased operations at its "Good:Farm" outdoor cultivation facility.
1 Adjusted EBITDA is a Non-IFRS financial measures. Refer to the Non-IFRS Measures section in the MD&A for the definition.
"Our strategy of putting consumers first, working hand in glove with wholesalers and retailers to commercialize our products, and investing in a leading supply chain means 48North is in a strong position for the future" said Charles Vennat, CEO of 48North. "The combination with Hexo should deliver meaningful synergies that are beneficial to our shareholders, customers, partners, and stakeholders."
Selected Financial Information
All amounts are expressed in thousands of Canadian dollars unless where indicated
3-months ended March 31, 2021
9-months ended March 31, 2021
Basic and diluted (loss) earnings per share – cents
Cash and cash equivalents
Third Quarter 2021 Results Conference Call
May 31, 2021 at 8:30 AM (ET)
Dial-in number: 1-888-231-8191
The conference ID is 2860867 and you will be prompted to provide your name and company.
48North Cannabis Corp. (TSXV:NRTH) is a brand-led, consumer-centric licensed cannabis producer with an expansive portfolio of high quality, accessibly priced products available across the country. The company serves the Canadian medical and adult-use markets with its brand portfolio that includes: 48North, an innovative and high-quality cannabis brand focused on thoughtfully crafted everyday staples for passionate cannabis users; Trail Mix, an accessibly priced brand formulated with taste and aroma-first flavour profiles; Latitude, a next generation lifestyle platform and premium, natural cannabis collection focused on wellness, beauty, and beyond. 48North operates two indoor-licensed cannabis production sites in Ontario and cultivates unique genetics at its wholly owned subsidiary, DelShen Therapeutics Corp., and processes cannabis and manufactures next generation cannabis products at Good & Green Corp., both licensed producers under the Cannabis Act.
DISCLAIMER & READER ADVISORY
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "could," "intend," "expect," "believe," "will," "projected," "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current beliefs or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. Please refer to the Company's SEDAR filings for further details concerning the risks associated with the Company's business. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward-looking information. The foregoing statements expressly qualify any forward-looking information contained herein. Public health crises, including the ongoing novel coronavirus (COVID-19) pandemic, could have significant economic and geopolitical impacts that may adversely affect the Company's business, financial condition and/or results of operations.
SOURCE 48North Cannabis Corp.
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