SMITHS FALLS, ON, Nov. 25, 2014 /CNW/ - Tweed Marijuana Inc. (TSXV: TWD) ("Tweed Marijuana" or the "Company"), today announced its financial results for the three and nine month period ended September 30, 2014. Tweed's wholly owned subsidiaries Tweed Inc. and Tweed Farms Inc. are Licensed Producers under the Marihuana for Medical Purposes Regulations (MMPR).
The company reported third quarter sales of $316,117 bringing YTD sales to $504,353. Gross margin was $74,475 and $183,754 for the three and nine months ended September 30, 2014 respectively. The cash position was $8,357,196 at the end of the quarter. Net loss for the three and nine month period was $2,376,592 and $6,293,189.
During the quarter each of the two operating companies, Tweed and Tweed Farms, focused upon the priority of managing a limited inventory to a sustainable client list while implementing production in both the Smiths Falls and Niagara facilities with the objective of establishing a substantial and sustained increase in inventory and clients by December 2014.
Tweed has been focused on steadily building-out capacity to meet market demand. Its first product harvest in May, for example, was the output of a single growing room. Tweed had three grow rooms in production by the end of July and on August 31 had an additional three grow rooms brought online, bringing production capacity to six grow rooms by the end of the quarter and meaning that harvests are now six-fold larger than early harvests. Tweed has committed to introducing an additional six rooms by the end of calendar 2014 and remains on pace to reach this target.
In July Tweed announced that it had entered into collaborative research partnerships with researchers from Ryerson University and the University of Ottawa to increase the knowledge base surrounding medical marijuana. These research projects underscore the significant opportunity that exists for early entrants into this sector to expand the knowledge base relating to medical marijuana and to develop proprietary knowledge and intellectual property. Research will be initially focused on examining environmental factors that can influence the quality and yield of medical marijuana, as well as assessing correlations between active ingredients in medical marijuana and strain effectiveness on selected ailments.
On June 19, 2014, Tweed Marijuana acquired all the assets of Prime 1 Construction Services Corp., including related land, greenhouse and building. On September 19, 2014, the company name was changed to Tweed Farms Inc. On August 11, 2014, Tweed Farms received its Health Canada license to grow and ship marijuana plants and subsequently commenced a growing cycle in 10% of the 350,000 square foot facility.
Harvests Underway: On October 17, 2014, Tweed Farms commenced shipping its plants to Tweed for harvesting. On November 14, 2014 the harvest had been cut, trimmed and was drying and curing so as to be available for sale in the beginning of December along with Tweed harvests from six growing rooms at its Smiths Falls facility that had commenced in October.
Corporate Governance: On October 28, 2014, Tweed Marijuana was pleased to announce the addition of John K. Bell FCPA, FCA, ICD.D to its Board of Directors. Mr. Bell brings a wealth of experience across a number of industries, significantly enhancing the Company Board of Directors. The Company anticipates this will be followed shortly by the appointment of a new CEO.
Major Medical Outreach Investments: On November 4, 2014, Tweed announced that it had made a major strategic investment in medical conferences, notably, the Primary Care Updates series. The series took place in Mississauga, Richmond Hill, Ottawa, Calgary and Vancouver and is typically attended by more physicians than any other national continuing medical education (CME) program. Members of Tweed's Medical Advisory Board were among the faculty presenting. Tweed also announced that in conjunction with other licensed producers it would be co-sponsoring through an unrestricted grant, a 5-City CME program to be held in February-March 2015 in partnership with the Canadian Consortium for the Investigation of Cannabinoids (CCIC).
License Renewed for a Further Year: On November 19, 2014, the Company announced that Tweed had successfully renewed its license to cultivate and sell marijuana under the MMPR. The renewed license allows Tweed to produce up to 3,500 kilograms of marijuana over the next year, reflecting Tweed's present built-out production capacity. Tweed Marijuana also announced that Tweed Farms has been approved to begin another growing cycle this December in a footprint representing approximately 10% of the entire facility.
Bruce Linton, the Company's Interim CEO, Chairman and Co-Founder, and Don Gibbs, the Company's CFO, will host a conference call on November 26th, 2014 at 8:30 a.m. ET to discuss the Company's financial results.
Date: November 26th, 2014
Time: 8:30 a.m. ET
Toll-Free Dial-In Number: (844) 835-6557
Participant International Dial-In Number: (224) 633-1282
Conference ID: 40361839
A replay of the call will be available beginning November 26th, 2014 at 2:30 p.m. ET through 11:59 p.m. ET on December 10th, 2014 and can be accessed by dialing 855-859-2056 (toll free in North America) or 404-537-3406 (International) and using access code 40361839.
Notice regarding Forward Looking Statements
This news release contains forward-looking statements including statements about Tweed Marijuana's future operations, growth, position within its sector and the ability of its subsidiary companies to continue meeting the requirements of applicable regulations. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from those expressed or implied above. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including: the ability to obtain necessary financing; the economy generally; the yield from the Company's marijuana growing operations; consumer interest in products; competition; regulation and unanticipated costs and delays. Although Tweed Marijuana has attempted to identify important factors that could cause actual results to differ materially from those described above, there may be other factors that cause results not to be as anticipated. Readers should not place undue reliance on forward-looking statements. Tweed Marijuana's public disclosure documents available at www.SEDAR.com contain detailed discussion of the risk factors associated with its business. The forward-looking statements included in this news release are made as of the date of this news release and Tweed Marijuana does not undertake an obligation to update such forward-looking statements unless required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Tweed Marijuana Inc.
For further information: Jordan Sinclair, Media Relations Manager, [email protected], 613-706-2185 ex 309