48North Cannabis Corp.
48North Cannabis Corp. (TSXV: NRTH) released its financial and operating results for the three and six months ended December 31, 2018, with revenue for fiscal second-quarter of C$2.4 million. This was an 88% sequential increase over the first quarter. The company reported a net loss of C$872,628, down from the first quarter loss of $1 million.
“48North successfully achieved all of the milestones it targeted in Q2. These included: sustained revenue growth; closing both the Good & Green acquisition and the $10,000,000 private placement,” said Alison Gordon, co-CEO of 48North.
The company repaid $2,300,000 in mortgage debt for the Morton Avenue Good & Green facility and closed a $7,045,000 non-brokered private placement bringing a total of $10 million in new equity to the Compan
“Our strong business performance throughout the quarter drove positive EBITAO and a significant increase in revenue growth quarter over quarter,” Ms. Gordon continued. “Subsequent to the end of the quarter, 48North completed the operational build-out and license application for the Company’s 100-acre outdoor cannabis farm in Brant County, Ont. In addition, the Company signed a supply agreement for organic sun-grown cannabis with the SQDC — the first agreement of its kind in Canada — a significant milestone that demonstrates 48North’s position as the industry leader with respect to the expected development and distribution of next-generation cannabis products, including topicals, cosmetics, vape pens, edibles and beverages.”
James E. Wagner Cultivation Corp.
James E. Wagner Cultivation Corporation (TSX VENTURE: JWCA) reported its unaudited financial and operational results, for the first quarter of fiscal 2019 ending December 31, 2018. The company reported $549,000 in operating revenue, but a net loss of $2.3 million.
“The first quarter of 2019 saw marked improvements in several operational capacities at JWC,” said Nathan Woodworth, President, and Chief Executive Officer. “Additional staff were added to ensure training is completed before the move to JWC 2. The pilot facility was in full production for the quarter, following the upgrade of the HVAC system to a new highly advanced more customized solution. This allowed for a rapid increase in yields. For the quarter JWC produced a variety of strains at an average yield per plant of 210 grams. Very low crop loss numbers were recorded, at less than 1% of flowering plants. A new product was introduced to our online store front to overwhelmingly positive reviews, and 4 new products were prepared for active production in the following quarter. JWC is excited about the coming months as we take these advancements and begin to scale up in to our second facility, JWC 2.”
James Wagner said that it finished the quarter with approximately 172 kg of dried cannabis and 14 liters of formulated cannabis oil in its storage vault. During Q1 2019, JWC focused on preparing to move into its second, large-scale facility, while beginning to ramp up sales both direct to patient and through the Canopy Growth Corporation’s (CGC) CraftGrow store.
Work continues at the Manitou Drive facility. Construction has continued on phase 2, and phase 1 is ready to begin cultivation activities as soon as a license is granted by Health Canada. JWC continues to work with Health Canada and has received a Confirmation of Readiness for JWC 2, one of the last hurdles before receiving a license to cultivate. Phase 2 is expected to be completed and ready for cultivation during Q3. Once the second phase comes online, JWC will have the capacity to increase production by more than 400% from the end of calendar 2018.