Hill Street Beverage Company Inc. (TSXV:BEER) (“Hill Street” or “the Company”) reported its fiscal Q1 2020 financial results for the three-month period ended September 30, 2019. A complete set of financial statements and Management’s Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.
FQ1 2020 Financial Highlights
- Distributor Sell-In to Retail customers was +5% vs same period year ago.
- Gross Margin on Revenues of $514K improved from 27% to 35% vs same period year ago due to product mix and a positive foreign exchange.
- Net loss of $1.5M compared to a net loss of $1.2M in FQ1 2018 driven by several one-time expenses associated with entering the cannabis vertical.
- End of quarter cash position of $204K, no debt, and positive working capital of $0.6M.
“Hill Street has made major strides in building both our brand and distribution for our alcohol-free products over the past two years, and the increase in sell through to retail is an excellent indicator of our progress. The company has continued to move forward with our plans to enter the Cannabis 2.0 market in spite of the headwinds of the capital markets, major missteps made by billion dollar cannabis companies, and the overall downturn in the sector, with excellent preparation and analysis for the launch of infused cannabis beverages in 2020,” said Terry Donnelly, Hill Street Beverage Co.’s Chairman & CEO. “Our team has taken these challenges in stride, and continues to punch above their weight, with excellent response from retailers for our holiday gift pack and trade promotion for the coming season.”
Results of FQ3 2019 Operations
Q1 F2020 Operational Highlights
- Hill Street’s planned acquisition of OneLeaf Cannabis was mutually terminated on September 30, 2019. Acquisition cost, higher than expected capital expenditures to bring the facility online and lack of clarity from Health Canada concerning the timing of One Leaf’s licence grant contributed to the mutual decision.
- Hill Street continued to be active in both Industry and Capital markets investor events:
- Keynote speaker at the inaugural Cannabis Drinks Expo in San Francisco;
- Presented at the Micro Cap Investor conference in NYC, which focused on cannabis edibles;
- Keynote at McGill Centre for Cannabis Research;
- Presented at Extraordinary Futures Conference in Vancouver;
- Presented at the Thinking Capital Conference in Toronto;
- Presenting Sponsor at O’Cannabiz in Niagara Falls.
- Alcohol-free Holiday commitments to the promotional “Entertainers Pack” increased 300% versus same period year ago.
- Fortinos, a large format Retailer with 23 stores in Southern Ontario owned by Loblaws Companies Limited, agreed to list all seven (7) stock-keeping-units (“SKU’s”) of Hill Street’s Vin(Zero) wine and Craft beer. On-shelf date is October 2019, in time for the important Holiday period.
- Five (5) Hill Street SKU’s are now available for immediate orders on Amazon.ca.
“I’m delighted to see more retail accounts in more regions embrace the promotion. This beautiful designed mix-pack of red, white and sparkling brut is the perfect compliment for entertaining this holiday season,” said Doug Taylor, Chief Commercial Officer.
Highlights Subsequent to September 30, 2019
- Hill Street has begun negotiations with several co-packing partners across Canada to produce its cannabis infused products, including its award-winning alcohol-free wine and beer. On November 12, 2019, the company announced its first co-packing agreement with Peak Processing Solutions of Windsor, Ontario. Additional co-packing agreements are expected to be announced in due course.
For further information:
Terry Donnelly, Chairman and CEO, Hill Street Beverage Company Inc.,
firstname.lastname@example.org, (416) 543-4904;
Sean Peasgood, Investor Relations,
email@example.com, (647) 797-0219
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company is the world’s most award-winning company exclusively focused on alcohol-free beer, wine, and adult format beverages. Hill Street’s great-tasting alcohol free products include Hill Street Craft Brewed Lager, Designated Draft Pilsner beer, Vin(Zero) and Vintense wines. All have won numerous medals and accolades including three Gold, two Silver, and two Bronze Medals at the U.S. Open Beer Championships, the Retail Council of Canada’s Grand Prix award, and a prestigious Double Gold Medal at the San Francisco International Wine Challenge. Hill Street will also produce and sell cannabis-infused adult beverages shortly after edibles becomes legal in Canada, expected to occur on October 17, 2019. Check out Hill Street’s award-winning line-up and order product to be delivered straight to your home at www.hillstreetbeverages.com.
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities 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.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).
Canopy Growth to Participate in BofA Securities Virtual Consumer & Retail Technology Conference on March 11, 2021
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) (“Canopy Growth” or “the Corporation”) announced today that EVP & CFO Mike Lee will be participating in a fireside chat at the BofA Securities Virtual Consumer & Retail Technology Conference on Thursday, March 11, 2021 at 9:30am ET .
Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”). The Company announces that further to its press release dated March 2, 2021, it has obtained TSX Venture Exchange approval to extend the closing date of its previously announced private placement of units (“Units”) until April 7, 2021. Each Unit is comprised of one (1) common share and one (1) warrant, exercisable for one common share at price of $0.11 per share, for a period of three (3) years from the date of Closing. The Company applied to extend the date of closing to allow a greater number of interested investors to participate.
For more information regarding the Company or the offering, please contact firstname.lastname@example.org, or