Kitchener, Ontario, December 18, 2018 - James E. Wagner Cultivation Corporation (“JWC” or the “Company”) (TSX VENTURE: JWCA), announced today the achievements, audited financial and operational results, for the fourth quarter and year ended September 30, 2018 (“Fiscal 2018”). The Company is pleased to report that its interim financial statements and management’s discussion and analysis for the year ended September 30, 2018, are available on SEDAR at www.sedar.com. All amounts expressed are in Canadian dollar unless otherwise noted.
Nathan Woodworth, President and Chief Executive Officer, stated, “Fiscal 2018 was a landmark year in the JWC story. The Company completed the build out of its initial 15,000 sq. ft. facility. We leased and began construction in our second, 345,000 sq. ft., facility. We received our sales licence and commenced medical sales to our growing list of patients. We completed an $18 million brokered private placement and a reverse take-over and going-public transaction (“RTO”), which saw JWC begin publicly trading its common shares on the TSX Venture Exchange in June. All of these events are significant, but this is only the beginning for JWC. Since the end of fiscal 2018, we have continued to write our story. Landmark events since that date include the first sales of our product through Canopy Growth Corporation’s CraftGrow program, the technical advancements developed by us in the GrowthSTORM™ Dual Droplet system, and the official ribbon cutting for occupancy of our second facility located at 530 Manitou Drive in Kitchener, after completing the first phase of construction of the facility. We anticipate receiving approval shortly from Health Canada to begin cultivation activities at this facility, while simultaneously continuing with the remaining phases of construction. We are also very proud to now have more than seventy employees and we look forward to seeing that number grow to more than 300 over the next twelve months.”
Selected Summary of Fiscal 2018 Results:
|September 30, 2018 ($)||September 30, 2017 ($)||% change|
|Cash and cash equivalents||8,504,790||6,858,659||24%|
|Short term investments||6,017,153||-||NA|
|Agricultural produce and biological assets||2,607,433||249,843||944%|
|Other working capital||483,917||278,276||74%|
|Q4 2018 ($)||Q4 2017 ($)||% change||Full Year 2018 ($)||Full Year 2017 ($)||% change|
|Loss from operations||(2,305,025)||(2,973,111)||(22)%||(9,005,095)||(3,881,820)||132%|
|Net and comprehensive loss||(2,249,055)||(2,721,798)||(17)%||(10,313,920)||(3,629,618)||184%|
|Net and comprehensive loss per share||0.03||0.05||(45)%||0.14 &||0.07||90%|
For the three months and year ended September 30, 2018, the Company’s net and comprehensive loss was $2,249,055 (as compared with $2,721,798 in the fourth quarter of fiscal 2017) and $10,313,920 (as compared with $3,629,618 for the 2017 fiscal year end) respectively.
The Company finished the year with just over 190 kg of dried cannabis in its storage vault. JWC received its sales licence for dried flower during 2018 and began to sell directly to patients during Q3. The first shipment to the Canopy Growth Corporation’s CraftGrow store took place during Q4 and was made available to patients in early Q1 2019. The JWC customer care team focused on building relationships with several clinics and continue adding patients to the JWC roster. Over the first two months of fiscal 2019, the Company has seen its patient roster grow significantly, now with over 218 registered patients. The Company has also continued to ship dried cannabis to the Canopy Growth Corporation’s CraftGrow store and will provide its first shipment of resins before the end of 2018, for processing into oils. The Company also expects to receive its sales licence for oils in early 2019, and will make available several oil extract products for direct selling to its registered patients.
JWC recently announced that it received an occupancy permit following completion of the first phase of construction at its Manitou Drive production facility (“JWC 2”). Work is underway to equip the grow rooms and all support areas. The Company has also received a building permit to begin the second phase of construction of the grow rooms at JWC 2. Upon completion of the second phase of construction, management of the Company expects that total production capacity of JWC will increase by more than 400% from the end of calendar 2018.
JWC’s wholly-owned subsidiary is a Licenced Producer under the Cannabis Regulations ( “C45Reg”), formerly the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). JWC is a premium cannabis brand, focusing on producing clean, consistent cannabis. JWC uses an advanced and proprietary Dual Droplet aeroponic platform named GrowthSTORMTM. JWC was founded as a family company and is based on family values. JWC began as a collective of patients and growers under the Marihuana Medical Access Regulations (the precursor to ACMPR). Since its inception, JWC has remained focused on providing the best possible patient experience. JWC’s operations are based in Kitchener, Ontario. Learn more at www.jwc.ca
Notice regarding forward-looking statements:
This press release contains statements including forward-looking information for purposes of applicable securities laws (“forward-looking statements”) about JWC and its business and operations which include, among other things, statements regarding JWC and any information with respect to the potential growth of the Company and increasing production capacity at its facilities and the proposed shipment of its products and the benefits of the arrangements entered into with customers and partners. The forward-looking information contained in this news release are based on JWC’s current internal expectations, estimates, projections, assumptions, and beliefs and views of future events which management believes to be reasonable in the circumstances, including expectations and assumptions regarding: general economic conditions, the expected timing and cost of expanding the Company’s production capacity, the internal opportunities, the development of new products and product formats, the Company’s ability to retain key personnel, the Company’s ability to continue investing in its infrastructure to support growth, the impact of competition, trends in the Canadian medical cannabis industry and changes in laws, rules, and events, performance or results, and will not necessarily be accurate indications as to whether, or the times at which, such events, performance or results will occur or be achieved. The forward-looking statements can be identified by the use of such words as “anticipated”, “will”, “expected”, “approximately”, “may”, “could”, “would” or similar words and phrases. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those implied in the forward-looking statements. For example, risks include risks regarding the cannabis industry, economic factors, the equity markets generally, funding and grant related risks and risks associated with growth and competition as well as the risks identified in the Company’s Filing Statement available under the Company’s profile at www.sedar.com. Although JWC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are based on current assumptions which management believes to be reasonable. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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