World News: 01:32 GMT Tuesday 3rd December 2019. [Medcolcanna Organics Inc. via Globe Newswire via SPi World News]
BOGOTA, Colombia, Dec. 02, 2019 (GLOBE NEWSWIRE) -- Medcolcanna Organics Inc. (“” or “the “”) (TSXV: MCCN) announces the filing of its financial and operating results on November 29, 2019 for the three and nine months ended September 30, 2019. All dollar values in this news release and the Company’s financial disclosures are in Canadian dollars, unless otherwise stated.
1) The large difference in Net Loss to Cash used in operations is due to non-cash costs incurred in the first 6 months of 2019, such as listing costs, depreciation, share-based compensation and unrealized FX loss.
Felipe de la Vega, Medcolcanna President and CEO, commented: "We are pleased to report significant progress during the Q3 financial reporting period, including completion of 2.2 hectares of commercial greenhouses and administrative areas as well as the start of our post-harvest facility. We were also able to complete construction of additional greenhouses for mother plants and cloning, which will give us an additional revenue stream supplying clones and seeds to Colombian Cultivators. I am also excited to begin our operations in Europe promoting our brand Cannav, selling cannabis vaping products.”
Mr. de la Vega continues “We continue to work towards our commercial cultivation of cannabis with the expectation of harvesting our first crop in Q4 2019. We were also able to establish a pilot extraction lab which will prepare the Company and reduce execution risk when we are able to harvest our first crop.”
Chris Reid, CFO, commented: “We were able to exit the quarter with a strong working capital balance of $4.7 million, as well as an overall reduction in our planned 2019 capex of $2.3 million due to the executed agreement with HBT as well as other costs reductions that we were able to achieve. As well, the Company has successfully created two additional revenue streams by way of 1) the excess extraction capacity that will allow the Company to provide extraction services to other Colombian cannabis cultivators, and 2) the sale of clones to cultivators that are now being cultivated within our fully-functional greenhouses and auxiliary facilities. The Company expects to commence selling clones and extraction services in the first and second quarters of 2020, respectively.”
Chris Reid, CFOCarrera 49b # 93-62Bogotá, ColombiaPhone: +571 642-9113Email:
Globe Newswire: 01:32 GMT Tuesday 3rd December 2019
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