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 Toronto Area.
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 accurate.
SOURCE: Bedrocan Cannabis Corp.
For further information:
Cam Battley, Bedrocan Cannabis Corp.
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