Experion Reports Third Quarter Fiscal 2019 Operational and Financial Results
VANCOUVER, BC / ACCESSWIRE / November 14, 2019 / Experion Holdings Ltd. (TSXV:EXP)(OTCQB:EXPFF)(FRANKFURT:MB31), formerly Viridium Pacific Group Ltd, a Health Canada licensed cultivator and processor of cannabis, focused on a portfolio of products for the adult-use, wellness and therapeutic, and medical consumer markets, is pleased to report its operational and financial results for the third quarter of fiscal 2019.
Key Operational Highlights of The Third Quarter of Fiscal 2019
Over the past quarter, Experion., has continued to focus on developing its unique genetics and diversifying its product offering with new craft grown premium cannabis strains. During the quarter, three new strains were commercially grown with exceptional results: Creamcile, Mimosa and MAC 1. All exhibited the profile and specifications needed to be considered as premium product under Experion’s Adult-Use brand “Citizen Stash” garnishing top retail pricing and margins. We expect all of the strains to be introduced into the Adult-Use market by the end of the year.
The new strains will complement Citizen Stash’s award-winning strain “Lemon Zkittle”, that is currently available in British Columbia (“BC”) and Saskatchewan (“Sask.”) through provincial and private licensed retailers. Over the quarter, consumers continue to respond well to Lemon Zkittle with shipments often selling out within hours. Further evidencing the consumers love for Citizen Stash, Experian’s Master Grower, Liam McKenzie, was named Top 5 Master grower in Canada at the consumer voted Canadian Cannabis awards.
Increasing distribution within the various provinces and product offering remains a key objective for Experion through its brand Citizen Stash. Experion is currently looking to add new provinces including Alberta, Yukon and Manitoba over the next quarter to complement BC, Sask. and Quebec.
In order to meet its objectives to increase distribution and offer premium product offerings, Experion made improvements within the Mission facility to increase processing space throughout the quarter. The increased processing space will allow Experion to explore and evaluate commercial scale extraction and oil production enabling over 24,000 KG of biomass to be extracted annually. The increased processing space will also allow commercial scale of premium flower pre-rolls, capsule and pill production, oil filling, oral sprays, topical and cream development and white labeling opportunities for other licensed cultivators. To increase capacity and cannabis biomass, Experion continued to focus on its clone buy back program and shipped over 3,500 clones to partners in BC and Alberta with revenue from these partnerships being realized in the next quarters. The clone buy back program enables Experion to increase capacity, commercialize strains, increase revenue and develop partnerships into long term grow contracts. In addition, Experion sourced and secured high grade extraction biomass including a minimum 6.000 KG annually of refined Hemp with an investment and partnership with True North Hemp, the largest Hemp supplier in Canada offering extraction ready high potency CBD, securing supply. Direct access to quality biomass will be key to develop value added products and expands the Company’s ability to substantially increase the service offering of extraction services and added white label manufacturing services.
Key Financial Highlights of The Third Quarter of Fiscal 2019
Jay Garnett, CEO, commented: “During the quarter, the Company focused on increasing revenue and margins by developing our premium craft strains fetching top retail dollar. Increasing processing space was another key objective allowing Experion to further explore and evaluate various added value products. Experion has a clear go forward strategy; supported by its current balance sheet and new revenue generating capabilities, the Company is well positioned to achieve its vision. In the next 90 days, we are focused on increasing distribution, products and strains offerings resulting in increased revenue through our grow partners and product development. In the next six months, we will continue to increase our premium cannabis flower and determine value added products with the objective of profitability and creating long term value for our shareholders.”
The management’s discussion and analysis for the period and the accompanying financial statements and notes are available under the Company’s profile on SEDAR at www.sedar.com.
(1)Adjusted EBITDA is a non-GAAP measure used by management that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management defines adjusted EBITDA as income (loss) and comprehensive income (loss) from operations, as reported, before interest, tax, depreciation and amortization, and adjusted for removing share-based payments, unrealized gains and losses from short term investments and other one-time and non-cash items including impairment losses. Management believes adjusted EBITDA is a useful financial metric to assess its operating performance on an adjusted basis as described above. See “Reconciliation of non-IFRS measures” in the Company’s Management’s Discussion and Analysis for the period ended August 31, 2019 for additional information.
Experion Private Placement Financing
Experion Holdings Ltd is pleased to announce a private placement of 1,666,667 common shares at a price of $0.15 per share for gross proceeds of $250,000 from Mr. Jay Garnett, the CEO of the Company. The private placement investment is subject to acceptance for filing by the TSX Venture Exchange and the proceeds of the Private Placement will be used for general working capital.
The placement to Mr. Garnett constitutes a “related party transaction” within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61‑101 ‑Protection of Minority Security Holders in Special Transactions (“MI 61‑101″) adopted in the Policy. The Company will rely on exemptions from the formal valuation and minority shareholder approval requirements of MI 61‑101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61‑101 in respect of Mr. Garnett’s participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, exceeds 25% of the Company’s market capitalization (as determined under MI 61-101). Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to closing of the placement due to the timing of the announcement of the private placement and closing occurring in less than 21 days.
About Experion Holdings Ltd.
Experion Holdings Ltd. is the parent company of Experion Biotechnologies Inc., a Health Canada licensed cultivator and processor of Cannabis, based in Mission, BC; and EFX Laboratories Inc., a medical products production and clinical research company based in Calgary, AB.
Experion Holdings Ltd. is invested in a portfolio of products to address a wide spectrum of consumer needs’ including Medical, Adult-use, and Wellness and Therapeutic products.
Experion Holdings Ltd trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “EXP”, the OTCQB Venture under the symbol “EXPFF” and on the Frankfurt Stock Exchange under the symbol “MB31”.
For further information, please visit the Company’s website www.experionwellness.com or join our Global Investor Forum on 8020 http://connects.company/ExperionEXP where you can read all press releases or contact Investor.
Phone: 604 340 3050
This press release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, forecast, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Company’s equity securities; recent market volatility; the Company’s ability to raise the necessary capital or to be fully able to implement its business strategies; the risks identified in the Filing Statement, and other risks and factors that the Company is unaware of at this time. The reader is referred to the Filing Statement dated September 25, 2017 and/or the most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company page on SEDAR at www.sedar.com.
SOURCE: Experion Holdings Ltd.
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