Experion reports revenue growth First quarter 2020 and fiscal 2019
Experion Holdings Ltd. (the “Company“ or “Experion”) (TSXV:EXP) (OTCQB:EXPFF) (FRANKFURT:MB31) a cultivator and processor of cannabis products is pleased to announce its financial results for its first quarter, for the period ended February 29, 2020, and its full year as at November 30, 2019.
KEY FINANCIAL HIGHLIGHTS OF THE FIRST QUARTER OF 2020
- Revenue for the first quarter of 2020 increased to $803,655, an increase of 127% from the fourth quarter of 2019.
- Since the beginning of the fiscal year, Experion has processed 180,142 grams of dried flower to be sold through the retail distribution channel.
- Average net selling price per gram was $7.86 an increase of $1.20 compared to the fourth quarter of 2019.
- Gross profit margin increased to $3% of gross revenue, compared to negative 18% in the prior quarter.
- Decrease of $682,893 or 41% in expense in the first quarter of 2020 compared to the fourth quarter of 2019.
- Adjusted EBITDA(1)increased by $1.1 million compared to the prior quarter.
- Well positioned balance sheet with $3.4 million in cash and net working capital of $4.6 million as at February 29, 2020, with no debt
KEY OPERATING HIGHLIGHTS OF THE FIRST QUARTER OF 2020 AND FOURTH QUARTER OF 2019
- Reduced operational expenses by at least 30% through optimizing processes, functions and right-sizing the organization.
- Health Canada approved amendment to license for expanded cultivation and processing space within facility, effectively increasing cultivation by 20% and processing by 100%.
- Increased distribution and active in 5 provinces and two territories servicing over 600 retailers.
- Established one of the fastest selling retail brands in Canada, Citizen Stash, offering premium cannabis products.
- Increased product offerings by launching five new first to market strains and manufacturing and distributing high-quality premium pre-rolls across Canada.
“We are proud to have achieved significant growth quarter over quarter, with the first quarter of 2020 being our strongest to date and anticipate significant revenue growth again in the second quarter of 2020. The financial statements for Q1 2020 reflect the improvements made in all key areas of the company from licensing, facility, product procurement and sales. Our focus on being a leading distributor of cannabis products as well as building a recognized and sought-after brand will continue to drive the Company to profit,” commented Experion Holdings CEO, Jarrett Malnarick. “These results demonstrate the vision and abilities of our management team and expect to continue this high level of performance and positive results going forward.”
Furthermore, Mr. Malnarick stated, “Management recently decided to not close on the debt facility previously announced in early February 2020 with Trichome Financial. We believe that we can achieve our initial business objectives of becoming a leading distributor of premium cannabis products in Canada with our strong balance sheet and continued sales momentum. Trichome continues to be a valuable business partner to Experion as the relationship moves towards short-term financing opportunities to support working capital as the Company ramps up its distribution model. We are excited about the opportunities to come and the future of the cannabis industry.”
The management’s discussion and analysis and the accompanying financial statements and notes for the period ended February 29, 2020, and for the year-ended November 30, 2019, are available under the Company’s profile on SEDAR at www.sedar.com.
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.
Experion Holdings Ltd. is invested in a portfolio of products to address a wide spectrum of consumer needs’ including Adult-use, Wellness and Therapeutic, and Medical products.
Experion trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol “EXP” on the OTCQB Venture under the symbol “EXPFF” and on the Frankfurt Stock Exchange under the symbol “MB31”
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies ofthe TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Experion Holdings Ltd.