Captor Capital Corp. (CPTR.CN)
- GlobeNewswire
Captor Capital Reports Revenues of $12.5 Million and Gross Profit from Retail Operations of $3.4 Million in Annual Audited Financial Statements for the Year Ended March 31, 2020
* 2020 annual revenue of $12.5 million vs. 2019 annual revenue of $5.9 million * 2020 Annual gross profit of $3.4 million vs. 2019 gross profit of $1.6 million TORONTO, Sept. 15, 2020 (GLOBE NEWSWIRE) -- Captor Capital Corp. (CSE: CPTR; FRANKFURT: NMV; STUTTGART: NMVA; USOTC: CPTRF), ("Captor" or the "Company"), The Company is pleased to announce today the release of its Annual Audited Financial statements and MD&A for the Year Ended March 31, 2020. During the year, revenues at the Company’s two Chai Cannabis Co. dispensaries were approximately $12.5 million. Gross profit during the same period was approximately $3.4 million.Management CommentaryIn the midst of an unprecedented and extremely challenging retail landscape, the Company has implemented processes to increase focus on profitability and disciplined growth. Over the course of the financial year, Captor made substantial progress in increasing revenues and foot traffic at its Chai Cannabis dispensaries.Captor also enhanced its retail model to include an increased focus on delivery services and online orders through its updated e-commerce site. Captor attributes much of the year-over-year revenue growth to these improvements and enhancements, which has also allowed Captor to significantly reduce its general and administrative overheadWith a solid base established in California, a streamlined and efficient organizational structure, and increased expertise in the operation of legal recreational cannabis dispensaries, Captor continues to focus on expanding its retail footprint.Operational UpdateIt was announced on August 10 that Captor entered into a joint venture (the “Joint Venture”) with California based Three Habitat Consulting Holdco Inc. (“Three Habitat”), which owns and operates a retail chain of dispensaries in California under the brand One Plant®. Captor and Three Habitat have set up a joint venture company called Captor Retail Group Inc. (“CRG”), owned 51 per cent by Captor and 49 per cent by Three Habitat. Under the terms of a contribution agreement entered into between Captor and Three Habitat (the “Contribution Agreement”), Captor will contribute $2mm in cash along with its two Chai branded dispensaries in Santa Cruz and Castroville. Three Habitat will contribute its seven One Plant dispensaries to CRG in exchange for its 49 per cent interest in CRG. Of the seven dispensaries being contributed to the Joint Venture by Three Habitat, the retail dispensaries in Salinas, Atwater, and El Sobrante are licenced and open for business. The locations in Antioch, Goleta, Lompoc, and Palm Springs are currently under constructionCaptor and Three Habitat have commenced integration of procedural and operational works to ensure consistent operation among all nine dispensaries. CRG is currently managing all dispensaries. CRG will proceed with the construction process on the One Plant Antioch dispensary, which is scheduled to be the sixth CRG dispensary in operation, subject to regulatory approval, with an estimated construction completion date of October 2020.Adam Wilks, COO of Three Habitat, has assumed the role of CEO of Captor Retail Group and will manage the day-to-day operations of all operational CRG dispensaries, as well as oversee the transfer of the dispensary licences to CRG and the construction and licencing of the four One Plant dispensaries that are currently under construction.The Company has engaged California counsel to work on the regulatory, licencing, and transfer of ownership of the dispensary licenses. The transaction will ultimately make Captor Capital one of the largest cannabis retailers in Northern California, with wide access to the area’s 15 million inhabitants and an integrated delivery and e-commerce network servicing all the area’s CRG dispensaries.In line with Captor’s retail and operations strategy, the Company intends to move Mellow Extracts into a 10,000 sq. ft. location attached to the Antioch One Plant dispensary upon obtaining the required regulatory approval. Captor will retain 100 per cent ownership of Mellow and its ownership will not be transferred to CRG as part of the joint venture. Upon regulatory approval, and upon completing the move from southern California to Northern California, Mellow will be strategically located within a 90-minute drive to the majority of the current and future CRG dispensary locations.Financial Highlights * During the year ended March 31, 2020, the Company had sales of cannabis at its retail dispensaries of $12,494,797 as compared to $5,865,687 in 2019 – an increase of $6,629,110. * During the year ended March 31, 2020, the Company recorded a gross profit of $3,397,966 from the sale of cannabis at its retail dispensaries as compared to $1,619,356 in 2019 – an increase of $1,778,610. * As of March 31, 2020 cash and cash equivalents totaled approximately $19.8 million * During the year ended March 31, 2020, the Company’s decreased its net loss by $13,561, 613 (as compared to the previous financial year) to $32,874,453. * During the year ended March 31, 2020, the Company’s decreased its general and administrative expenses by approximately $7.4 million as compared to the 2019 comparative year. * A decrease in share-based compensation of $2,040,350 was a result of the Company not granting any stock options granted during 2020. During 2019, the Company granted 1,825,000 stock options to officers, directors, employees and consultants.Retail Highlights * Prime retail locations at Chai Santa Cruz and Chai Castroville with a year of operating history and a stable and consistent customer base. * Subsequent to March 31, 2020, Captor continued to grow its retail presence to include the Bay Area, Santa Cruz, Monterey and Santa Barbara markets through the Captor Retail Group joint venture with Three Habitat. * The combined retail footprint consists of five (5) operating dispensaries and an additional four (4) dispensaries licensed and in various stages of development and construction. * The acquisition is in line with Captor’s strategy of building a leading cannabis retail, e-commerce, and delivery hub in the lucrative, but less costly Northern California market. * The Company has maximized opportunities to expand its e-commerce platform to capitalize on online ordering, delivery, and express pickupAncillary Revenue Streams Highlights * The Company will be investing in additional resources and support to expand and improve its current direct to consumer delivery service, which has tremendous growth potential. * The direct to consumer model allows the Company to leverage its bricks and mortar store to deliver products to a much larger customer base with minimal incremental costs. * Having the current geographic cluster of stores allows management to achieve maximum impact under the current delivery manifest rule limitations. * Captor will also seek to develop its own proprietary cannabis products, which it will sell in its branded dispensaries and beyond although certain products that the Company owns will only be sold in Captor owned dispensaries and through Company delivery service. * Management believes that having an exclusive set of high-quality bespoke products in its retail stores will further protect its current market share and lead to substantial new customer acquisition.ADDITIONAL INFORMATION Additional information relating to the Company’s annual filing is available on SEDAR at www.sedar.com and in the Company’s Annual Financial Statements and in the Management’s Discussion and Analysis for the Year Ended March 31, 2020.About Captor Capital Corp.Captor Capital Corp. is a Canadian vertically integrated cannabis company listed on the Canadian Securities Exchange, the OTC, and the Frankfurt and Stuttgart stock exchanges. Captor provides recreational and marijuana-based products to consumers, as well as other high demand cannabis-based goods for consumption. The Company follows a strategy of acquiring cash flowing established companies and organizations with growth potential that require capital to scale. Captor currently has a number of revenue generating cannabis assets including the CHAI Cannabis Co. dispensaries in Santa Cruz and Monterey, CA. The Company also owns Mellow Extracts, with a launch date to be determined.Gavin Davidson, Communications Captor Capital Corp. 705.446.6630 gavin@captorcapital.comForward-Looking StatementsNEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.This press release contains or refers to forward-looking information and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to availability of investment opportunities, economic circumstances, market fluctuations and uncertainties, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, and the other risks involved in the investment industry and junior capital markets. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
- GlobeNewswire
Captor Capital to Delay Filing of Financial Statements for the Year Ended March 31, 2020 and the Quarter Ended June 30, 2020
TORONTO, Aug. 28, 2020 (GLOBE NEWSWIRE) -- Captor Capital Corp. (CSE: CPTR; FRANKFURT: NMV; STUTTGART: NMVA; USOTC: CPTRF), ("Captor" or the "Company") \--today announced that its annual financial statements for the year ended March 31, 2020 and accompanying management’s discussion and analysis, and related CEO and CFO certifications (the “Annual Filings”) which were due on July 29, 2020 and initially scheduled for release on July 29, 2020 and then for a revised date of August 31, 2020, are now expected to be filed on or before September 14, 2020. Additionally, the quarterly financial statements for the quarter ended July 1, 2020 are expected to be filed on or before October 15, 2020. In accordance with Ontario Instrument 51-505 - Temporary Exemption from Certain Corporate Finance Requirements with Deadlines during the Period from June 2 to August 31, 2020 of the Ontario Securities Commission (and similar exemptions provided by the securities commissions of other provincial regulators) (collectively, the "Exemption Orders"), which was adopted for the purpose of providing certain filing and other relief to issuers in light of the challenges posed by the COVID-19 pandemic, that the Company will be delaying the filing and delivery of certain of its continuous disclosure documents due to delays caused by the COVID-19 pandemic, issuers were provided a 45-day filing extension for filings required during the period from June 2 to August 31, 2020. The Company is relying on the Exemption Orders with respect the delay of the Annual Filings.In the interim, management and other insiders of the Company are subject to a trading black-out policy that reflects the principles in section 9 of National Policy 11-207 Failure to File Cease Trade Orders and Revocations in Multiple Jurisdictions, such that they are in a black-out period until the end of the first trading day after the Annual Filings have been disclosed by way of a news release.About Captor Capital Corp.Captor Capital Corp. is a Canadian investment firm focused on the cannabis sector listed on the Canadian Securities Exchange, the OTC, and the Frankfurt and Stuttgart stock exchanges. A vertically integrated cannabis investment company, Captor’s investment portfolio of companies provides recreational and medical marijuana-based products to consumers via its leading brands and dispensary locations. The Company follows a strategy of acquiring cash flowing established companies and organizations with growth potential that require capital to scale.Contact Gavin Davidson, Communications Captor Capital Corp. 705.446.6630 gavin@captorcapital.comForward-Looking StatementsNEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.This press release contains or refers to forward-looking information and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to availability of investment opportunities, economic circumstances, market fluctuations and uncertainties, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, and the other risks involved in the investment industry and junior capital markets. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
- GlobeNewswire
Captor Enters Into Joint Venture with California based Cannabis Retail Chain and Obtains a 51% Interest in a Total of 9 Cannabis Dispensaries in Northern California
TORONTO, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Captor Capital Corp. (CSE: CPTR; FRANKFURT: NMV; STUTTGART: NMVA; USOTC: CPTRF), ("Captor" or the "Company") today announced that it entered into a joint venture (the “Joint Venture”) with California based Three Habitat Consulting Holdco Inc. (“Three Habitat”), which owns and operates a retail chain of dispensaries in California under the brand One Plant®. Captor and Three Habitat have set up a joint venture company called Captor Retail Group Inc. (“CRG”), which will be owned 51% by Captor and 49% by Three Habitat. Under the terms of a contribution agreement entered into between Captor and Three Habitat (the “Contribution Agreement”), Captor will contribute $2mm in cash along with its two Chai branded dispensaries in Santa Cruz and Castroville in exchange for its 51% interest in CRG. Three Habitat will contribute its seven One Plant dispensaries to CRG in exchange for its 49% interest in CRG. Of the seven dispensaries being contributed to the Joint Venture by Three Habitat, the retail dispensaries in Salinas, Atwater, and El Sobrante are licenced and open for business. The locations in Antioch, Goleta, Lompoc, and Palm Springs are currently under construction and are expected to be operational soon. Adam Wilks, COO of Three Habitat, will assume the role of CEO of Captor Retail Group and will manage the day-to-day operations of all nine dispensaries, as well as oversee the transfer of the dispensary licences to CRG, as well as the construction and licencing of the four One Plant dispensaries that are currently under construction. Mr. Wilks brings more than a dozen years of experience, in the quick service restaurant (QSR) industry having worked with brands including Yogen Früz®, Pinkberry®, Cold Stone Creamery® and Buy N Bulk®. Mr. Wilks currently oversees Three Habitat’s chain of dispensaries and real estate portfolio in California.“We are thrilled to join forces with such a strong partner that shares our corporate culture. Our focus remains on profitability as well as sustainable growth, as we continue to connect to our customers in a meaningful way,” said Captor Retail Group CEO, Adam Wilks.Once all dispensaries become operational and CRG holds all of the requisite regulatory licences, Captor will hold an interest in 51% of 9 operating cannabis dispensaries in northern California. To the extent that any dispensary licence is unable to be successfully transferred to CRG, the party who was supposed to contribute the relevant dispensary to CRG under the Contribution Agreement will have their equity ownership in CRG scaled back on a proportionate basis. There can be no assurance that the requisite regulatory approval will be received to permit the transfer of all nine dispensary licences to CRG.“The acquisition is in line with Captor’s strategy of building a leading cannabis retail, e-commerce, and delivery hub in the lucrative, but less competitive and costly Northern California market. The resulting retail footprint of nine stores will make Captor one of the largest retailers in Northern California,” said Captor Capital CEO, John Zorbas. “We are confident that with Adam Wilks leading our fantastic operations, this acquisition will strengthen Captor’s position as one of California’s leading cannabis retailers.”Upon Captor and Three Habitat making their contributions in accordance with the Contribution Agreement, Captor intends to move its Mellow Extracts business into the One Plant location in Antioch, California. As such, the licencing efforts in Costa Mesa, California, the current location of Mellow Extracts have been abandoned. It is intended that all extraction and edible making equipment that belongs to Mellow Extracts will be moved into a 10,000 sq ft. space attached to the One Plant location in Antioch. That location is currently zoned to allow cannabis manufacturing and processing, and Captor will commence the licencing application process once the extraction and edible making equipment has been moved to Antioch. Captor will retain 100% ownership of Mellow Extracts and its ownership will not be transferred to CRG as part of the Joint Venture.CEO of Captor, John Zorbas, stated, “The decision to move Mellow Extracts to Antioch is a strategic one. We wanted to create a centralized hub for retail, manufacturing and distribution that is within a 90-minute drive to majority of the future CRG dispensary locations. We intend Mellow to be a main supplier of oils, concentrates, and edibles to all of our dispensaries and it made sense for us to move Mellow from southern to northern California.”There can be no assurance of when the manufacturing and processing licences will be received by Mellow Extracts, or if they will be received at all.About Captor Capital Corp.Captor Capital Corp. is a Canadian cannabis company listed on the Canadian Securities Exchange, the OTC, and the Frankfurt and Stuttgart stock exchanges. Captor provides recreational and marijuana-based products to consumers, as well as other high demand cannabis-based goods for consumption. The Company follows a strategy of acquiring cash flowing established companies and organizations with growth potential that require capital to scale. Captor currently has a number of revenue generating cannabis assets including the CHAI Cannabis Co. dispensaries in Santa Cruz and Monterey, CA. The Company also owns Mellow Extracts, based in Costa Mesa, CA (launch date to be determined).Contact Gavin Davidson, Communications Captor Capital Corp. 705.446.6630 gavin@captorcapital.comForward-Looking StatementsNEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.This press release contains or refers to forward-looking information and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to availability of investment opportunities, economic circumstances, market fluctuations and uncertainties, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, and the other risks involved in the investment industry and junior capital markets. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.
