Cannara Biotech (“Cannara” or the “Company”) (CSE:LOVE, FRA:8CB, OTCQB:LOVFF), an emerging vertically integrated cannabis company focused on the cultivation and sale of dried premium cannabis and cannabis-infused products, today announced financial results for the three month and nine month periods ended May 31, 2019.


  • Robust progress at the Farnham Facility, with Phase 1 and 1.5’s 170,000 square feet of construction on schedule to be completed by the end of the summer.
  • Closed a Global Inc. financing in excess of $8 million to support the launch of the online e-commerce platform for the sale and distribution, in the US, of hemp-based CBD products.
  • Appointed several new independent board members, including Jack Kay and Dr. Sara May.
  • Subsequent to the quarter, the Company further strengthened its balance sheet with a $2.1 million private placement.

“These are pivotal and exciting times at Cannara, as construction nears completion and our cultivation plans and processes begin to take center stage,” said Zohar Krivorot, President and CEO of Cannara. “Given the size of our facility and the self-evident need for greater supply in the marketplace, we are as committed and confident as ever in our mission to be an integral cannabis producer in the Canadian landscape, combining scale with premium quality.”

“Recent financings in both Cannara and Global Inc. underscore the unique and compelling investment thesis of Cannara’s potential,” said Lennie Ryer, CFO of Cannara. “Indoor, large scale, Quebec-based with a disciplined yet opportunistic management team, highlights the interest in our Company. Capitalizing on this momentum, we are working diligently with Health Canada for all necessary regulatory approvals with a cultivation licensed facility anticipated by the end of the calendar year.”


Three and nine month periods ended May 31, 2019

During the three and nine month period ended May 31, 2019, the Company realized 100% of its lease revenue of $506,785 and $1,543,666 from two lessees who are currently occupying a portion of the vacant area of the Farnham Facility while the facility undergoes phased construction. The Company incurred $221,157 and $355,531 in lease operating costs respectively, in order to realize the lease revenue. The Company is managing the lease terms in order to coincide with its development plans for the remaining build out of the facility in order to improve the Company’s performance while the license application is pending.

During the three month period ended May 31, 2019, the Company incurred $2,770,458 in operating expenses (excluding amortization) and $150,429 in amortization expenses relating to the Company’s property, plant and equipment and its right-of-use assets. Included in operating expenses was $1,052,434 in professional fees paid to various consultants for the ongoing development and enhancement of Cannara Ops’ business practices, processes and strategy and for the advancement of ShopCBD e-commerce platform. During the quarter, salaries and benefits of $458,881 and $430,224 in share-based compensation were attributable to Cannara’s operations and $227,958 in salaries and benefits was attributable to Furthermore, operating expenses included $566,311 in general and administrative and investor relations expenses, consisting of $245,000 relating to general office, computer and travel related expenses for Cannara Ops, $225,000 for municipal taxes, public market and licensing expenses, $70,000 for ShopCBD office and travel expenses and $25,000 in board of director fees.

During the nine month period ended May 31, 2019, the Company incurred $7,355,441 in operating expenses (excluding amortization) and $417,451 in amortization expenses. Operating expenses consisted of $2,554,469 in professional fees for activities mentioned above in addition to development and registration costs for various patents and initial public offering costs, $1,967,666 in salaries and benefits of which $1,609,439 was attributable to Cannara Ops and $358,227 to, $1,536,474 in general and administrative and investor relations expenses, $990,910 in share-based compensation to Cannara employees and $502,349 in initial marketing costs to establish the Company’s brand presence.

The Company reported an operating loss of $2,635,259 for the three month period ended May 31, 2019 and $6,584,758for the nine month period ended May 31, 2019. The operating loss incurred is a result of the Company investing into the development of its operations during the pre-revenue phase. The Company believes that it will have sufficient revenues to cover operating costs once Cannara Ops receives its license and launches its e-commerce platform. The Company also incurred net finance expenses of $187,416 and $679,826 respectively which mostly relates to mortgage interest costs offset by interest income earned on cash and cash equivalents.

For the three and nine month period ended May 31, 2019, the Company reported a net loss of $2,822,675 or $0.01 loss per share and $9,139,827 or $0.02 loss per share respectively. Nine month period ended May 31, 2019 included a one-time charge of $1,875,243 relating to expenses for the reverse takeover transaction (of which $1,701,282 was non-cash).


The Company reported a net working capital amount of $28,430,987 as of May 31, 2019 (August 31, 2018 – $12,320,832). The Company expects that its existing cash as at May 31, 2019 will enable it to fund its planned construction and operating expenses for at least the next twelve months. The Company believes that it will have sufficient revenues to cover operating costs once Cannara Ops receives its cultivation license and launches its e-commerce platform.


For the three and nine month period ended May 31, 2019, cash used for operating activities was $2,889,219 and $6,917,186 respectively. The cash flow used in operating activities was primarily attributable to expenses relating to salaries of personnel and professional fees for the development of Cannara and ShopCBD’s business operations, initial marketing costs, office, travel and public market expenses.


For the three month period ended May 31, 2019, cash provided from financing activities amounted to $5,534,260 which is mostly attributable to the second round private placements by Global Inc. for 37,285,660 common shares issued at a price of $0.15 per common shares.

During the nine month period ended May 31, 2019, cash provided from financing activities amounted to $41,954,191which, in addition to amounts raised from the second round of private placements by Global Inc., also included $35,449,216, net of share issuance costs, for the issuance of 207,640,375 common shares and $1,078,063, net of share issuance costs, for the issuance of 950,000 warrants by the Company from the first round of private placement by Global Inc.


For the three and nine month period ended May 31, 2019, cash used for investing activities amounted to $7,714,239 and $17,075,388 respectively. Investing activities during the periods relate substantially to construction and equipment costs incurred for Phase 1 and 1.5 of the Farnham Facility as well as deposits made on property, plant and equipment to be received. In addition, the Company’s subsidiary,, invested $123,145 and $189,701 respectively, for the technical development of its e-commerce platform.


On July 24, 2019, the Company issued 12,000,000 common shares by way of a non-brokered private placement at a price of $0.18 per common share for aggregate gross proceeds of $2,160,000.


As at the date of this report, the Company had 706,770,705 common shares outstanding. There were 14,948,710 warrants and 30,129,424 options issued.

For further information, the complete Financial Statements and Management’s Discussion and Analysis for the three and nine months ended May 31, 2019 along with additional information about the Company and all of its public filings are available at and the Company’s website.

About Cannara Biotech

Cannara Biotech (CSE:LOVE) is building one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech’s facility will produce premium-grade indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding “Forward-Looking” Information

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Click here to connect with Cannara Biotech Inc. (CSE:LOVE) for an Investor Presentation.


Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value

Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).

Keep reading... Show less

Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.

Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.

Keep reading... Show less

Ensuring estoraTMpatients have seamless access to their high-quality medical cannabis products

World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the “Company” or “World-Class”) is pleased to announce that its subsidiary Pineapple Express Delivery Inc. (“Pineapple Express Delivery” or “PED”), a leading logistics technology company offering compliant and secure delivery of controlled substances and regulated products, has partnered with CannTrust Inc. to bring same-day and next-day delivery to estoraTM medical cannabis patients in Ontario

Keep reading... Show less

American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.

Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.

Keep reading... Show less

An Emerging Markets Sponsored Commentary

Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.

Keep reading... Show less