TORONTO, Aug. 28, 2014 /CNW/ - Bedrocan Cannabis Corp. ("Bedrocan" or
"the Company") (TSXV: BED) today would like to highlight some financial
and operational metrics related to its second quarter financial results
for the period ending June 30, 2014, which were released August 20,
2014 on SEDAR.
Revenues of medicinal cannabis to authorized patients in Canada were
$0.37 million for the second quarter ended June 30, 2014 ("Q2 2014"),
and $0.46 million for the six-month period ended June 30, 2014.
Gross profit was $0.12 million for Q2 2014, and $0.16 million for the
six-month period ended June 30, 2014. The results reflect Bedrocan's
initial strategy of importing and selling medical cannabis in Canada
produced by its exclusive license partner and shareholder, Bedrocan
Beheer BV ("Bedrocan BV") until Bedrocan can begin producing medicinal
cannabis domestically. Cash and cash equivalents for Q2 2014 were
reported at $14.36 million, with working capital of $13.52 million.
Product inventories for Q2 2014 were reported at $0.27 million,
representing approximately three months' inventory of medical cannabis
varieties sold in Canada.
"Our Q2 2014 financial results indicate a strong and stable positioning
for Bedrocan as we transition towards domestic production of our
medical grade cannabis," stated Marc Wayne, CEO of Bedrocan Cannabis
Corp. "Having sold a steady and uninterrupted supply of our products
since February 21, 2014, combined with our healthy cash balance and
working capital position, we are well capitalized to execute on our
current growth plan."
Bedrocan has implemented a two-pronged approach to the development of
its business operations in Canada. Currently, the Company is
importing, re-packaging and distributing its medical cannabis in Canada
received under its exclusive licensing arrangement with its
Netherlands-based partner and shareholder, Bedrocan BV. These
activities are being carried out in Bedrocan's existing 3,500 square
foot distribution and patient call centre, located in the Greater
Concurrently, Bedrocan is building up its patient and healthcare
practitioner database while it ships its existing medical grade
cannabis varieties, thereby positioning the Company to better leverage
into the next phase of its business development strategy.
For the second phase of its strategy, Bedrocan will be scaling up its
domestic operations through the design and construction of a state of
the art 52,000 square foot production facility, with an annual
production capacity of 4,000 kg expected to be completed in December
2014. Bedrocan BV has been managing the design and now overseeing
construction of the production facility, leveraging their expertise and
a 13-year successful track record of medicinal grade cannabis
production and inventory management.
About Bedrocan Cannabis Corp.
Bedrocan and Bedrocan BV are leaders in medicinal cannabis research and
product innovation and have been producing and supplying
government-regulated medicinal cannabis for 13 years. Bedrocan's
strains of pharmaceutical-grade cannabis are used by patients in seven
countries, including Canada. The Company is committed to clinical
research with ISO 9001-rated production processes and product
development, on an international scale. Bedrocan is one of only two
companies currently supplying pharmaceutical-grade medicinal cannabis
in Canada. Additional information about Bedrocan can be obtained at www.bedrocan.ca.
Forward Looking Statements
This news release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable Canadian
securities legislation. Forward-looking information includes, but is
not limited to, statements about strategic plans, including the
Company's ability to implement its business development strategy and
construct its production facility. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause actual financial
results, performance or achievements to be materially different from
the estimated future results, performance or achievements expressed or
implied by those forward-looking statements and the forward-looking
statements are not guarantees of future performance. All
forward-looking information contained in this news release is given as
of the date hereof and is based upon the opinions and estimates of
management and information available to management as at the date
hereof. Except as required by law, Bedrocan disclaims any obligation to
update or revise any forward-looking statements, whether as a result of
new information, events or otherwise. Readers are cautioned not to put
undue reliance on these forward-looking statements. This news release
contains information obtained by the Company from third parties,
including but not limited to market data. The Company believes such
information to be accurate but has not independently verified such
information. To the extent such information was obtained from third
party sources, there is a risk that the assumptions made and
conclusions drawn by the Company based on such representations are not
SOURCE: Bedrocan Cannabis Corp.
For further information:
Cam Battley, Bedrocan Cannabis Corp.
For investor relations, please contact:
+1.416.815.0700 ext. 226