Maricann Group Reports Q1 Results
Maricann Group Inc. (CSE:MARI) (FRANKFURT:75M) (OTCQB:MRRCF) (“Maricann” or the “Company”) has reported its financial and operating results for the first quarter ended March 31, 2018 and has filed the full report on SEDAR. All figures are stated in Canadian Dollars. At March 31, 2018, Maricann recognized revenue of $600,591, down from $1,143,167 in Q1 of 2017. The decline in revenue can be explained by the timing of a large bulk transaction that subsequently closed in the current quarter. As a result, current sales for Q2 of 2018 total approximately $905,000 to date (unaudited).
Consistent with previous guidance, the Company is positioned for export to the European market, having achieved European Medicines Agency Good Manufacturing Practice (EMA-GMP) certification for its facilities at 150 8th Concession Road, Langton ON (“Site 150”), a prerequisite to export cannabis to the European Union. Additionally, the Company is preserving inventory for both export to Europe and the adult use market in Canada, when legal.
“We maintain our position that establishing sustainable baskets of margin for our products that will be preserved over the long term is more important than immediate gross revenue. We base all our business decisions in the interest of long term value creation for our shareholders,” Stated Ben Ward, CEO.
Highlights for the quarter include:
- Strengthened the Company’s balance sheet by raising $40,250,000 by way of private placement.
- Positioned with Provinces for supply to the upcoming recreational market.
- Signed an exclusive agreement with Colorado-based Rare Dankness to provide their award-winning genetics to the Canadian market. Rare Dankness is a multi-year winner of the prestigious Amsterdam Cannabis Cup.
- The first room in phase 1 of Maricann’s world class grow facility was ready for cultivation. Subsequently, the Company received its third License from Health Canada to move ahead with cultivation activities and is now propagating 2,639 plants in the new facility.
- Expanded our European footprint with the announced letter of intent to acquire Switzerland-based cannabis cultivator HAXXON AG. The transaction subsequently closed in Q2.
- Received EMA-GMP Certification for Site 150, its Canadian cultivation facilities in Langton, Ontario.
About Maricann Group Inc.
Maricann is a vertically integrated producer and distributor of marijuana for medical purposes. The Company was founded in 2013 and is based in Burlington, Ontario, Canada and Munich, Germany, with production facilities in Langton, Ontario where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada. The Company also has production operations in Dresden, Saxony, Germany and Regensdorf, Switzerland. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft. (87,515 sq. m) expansion and will continue to pursue new opportunities in Europe.
Forward Looking Information
Certain statements in this press release contain forward-looking statements, including, without limitation with respect to the Company’s expansion project, sales in Europe and future growth plans, positioning in the recreational cannabis market and future production capacity, which can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “desires”, “will”, “should”, “projects”, “estimates”, “contemplates”, “anticipates”, “intends”, or any negative such as “does not believe” or other variations thereof or comparable terminology. No assurance can be given that potential future results or circumstances described in the forward-looking statements will be achieved or will occur. By their nature, these forward-looking statements, necessarily involve risks and uncertainties, including those discussed herein, that could cause actual results to significantly differ from those contemplated by these forward-looking statements. Such statements reflect the view of the Company with respect to future events, and are based on information currently available to the Company and on assumptions, which it considers reasonable. Management cautions readers that the assumptions relative to the future events, several of which are beyond management’s control, could prove to be incorrect, given that they are subject to certain risk and uncertainties, and that actual results may differ materially from those projected. Factors which could cause results or events to differ from current expectations include, among other things: uncertainties with respect to legalization of recreational cannabis; risks inherent to the expansion project; fluctuations in operating results; the impact of general economic, industry and market conditions; the ability to recruit and retain qualified employees; fluctuations in cash flow; increased levels of outstanding debt and obligations under a capital lease; expectations regarding market demand for particular products and the dependence on new product development; the impact of market change; and the impact of price and product competition, as well as other risks discussed in its latest annual information form and other disclosure documents of the Company available at www.sedar.com. Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
For more information about Maricann, please visit our website at www.maricann.com