Ventura Cannabis and Wellness Corp. (VCAN) Posts Quarterly Financials for the Quarter Ending November 30, 2019; Posts Annualized Organic Growth Rate of 96%

Ventura Cannabis and Wellness Corp. (VCAN) Posts Quarterly Financials for the Quarter Ending November 30, 2019; Posts Annualized Organic Growth Rate of 96%

LOS ANGELES, January 30, 2020 (GLOBAL NEWSWIRE)– – Ventura Cannabis and Wellness Corp. (CSE:VCAN)(“Ventura” or the “Company”) releases financial statements for the period ending November 30, 2019. Highlights include:

  • Cannabis revenue for the quarter was $501,000 as compared to $402,000 last quarter, representing a 24% growth quarter over quarter or 96% annually; organic growth accounts for the overwhelming majority of the revenue growth.
    • Cannabis Revenue Trend:
      • FY 2019 – $0
      • 2020 Q1 – $92,000
      • 2020 Q2 – $406,000 (341% increase quarter over quarter)
      • 2020 Q3 – $501,000 (24% increase quarter over quarter)
  • Gross margins for cannabis operations were 34%, however, as with most U.S. cannabis assets, free cash flow continues to be limited.
    • Gross Margin Trend:
      • 2019 Q3 – 22%
      • 2020 Q2 – 31%
      • 2020 Q3 – 34%
  • Cash remained roughly neutral quarter over quarter, as the Company continued to await regulatory approvals for new assets:
    • 2020 Q2 – $4,531,000
    • 2020 Q3 – $4,483,000
  • Total assets grew to $19,182,000 as accounts payable decreased by $500,000 between Q2 and Q3 of this year.
  • Management continues to work to dispose of or unwind the addiction services assets, as well as reduce liabilities and define the contingent liabilities more clearly. (see note 7)

“We had a fantastic quarter for revenue growth, the overwhelming majority of which was organic,” said Mr. Chris Heath, CEO of Ventura. “For the third quarter in a row we have seen revenue growth, but this quarter was different. We have proven to ourselves and the market that we can acquire brands and businesses and improve them quickly, increasing our market share and reducing our post-acquisition multiple. We are now very well positioned for future revenue growth; first, we have a solid team on the west coast of the U.S. that has years of experience in the full supply chain of cannabis, from seed to sale,  with a proven track record for three consecutive quarters. Second, we have contracts in place where we expect to manufacture, distribute and dispense cannabis products in California and Oregon, and we are working on several other west coast states in the U.S. for acquisitions and licenses. Lastly, we have no debt and we are operating our cannabis assets above breakeven.”

For future quarters, the management is focused on several key accomplishments to continue market share and revenue growth:

  • Appoint Lloyd Kaplan as Chairman of the Board, effective March 1st, 2020, with a mandate to initiate capital markets communication and develop relationships in the capital markets to enable continued revenue growth. Because of the taxation and regulatory framework in the U.S, cannabis assets generally do not yet yield significant cash flow. The strategy for all companies in this sector is to build brand loyalty and market share for when the U.S. Federal prohibition is lifted or the U.S. tax frame work is changed. Ventura Cannabis plans to work with capital market participants to continue to fuel revenue growth in future quarters.
  • Finalize ownership of assets that provide licenses to manufacture, distribute and sell branded products in California and Oregon, focusing on post acquisition revenue growth and generating limited but positive cash flow. These assets are projected to require most of our cash balance, and inorganic revenue growth will be the immediate result of the acquisitions.
  • Divest from the addiction business units working to reduce liabilities and better understand and deal with potential contingent liabilities. The Company has reserved the majority of its post-acquisition cash for these matters.

 

For more information contact:

Ventura Cannabis and Wellness Corp.
Chris Heath
CEO
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of January 30, 2020, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that the Company’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

 

Ventura Cannabis and Wellness Corp. (VCAN) Releases Preliminary Quarterly Financial Highlights for the Quarter Ending November 30, 2019; Posts Annualized Organic Growth Rate of 92%

Ventura Cannabis and Wellness Corp. (VCAN) Releases Preliminary Quarterly Financial Highlights for the Quarter Ending November 30, 2019; Posts Annualized Organic Growth Rate of 92%

 

LOS ANGELES, January 8, 2019 (GLOBAL NEWSWIRE)– – Ventura Cannabis and Wellness Corp. (CSE:VCAN)(“Ventura” or the “Company”) released preliminary selected quarterly financial highlights for the quarter ending November 30, 2019:

  • Cannabis revenue for the quarter is expected to exceed $490,000 as compared to $402,000 last quarter, representing a 23% growth quarter over quarter.
  • Gross margins for cannabis operations of 33%, as with most U.S. cannabis assets, free cash flow is limited.
  • Management continues to work to dispose of or unwind the addiction services assets.

“I wanted to provide an update on our third quarter as a cannabis-focused business to our shareholders,” said Mr. Chris Heath, CEO of Ventura. “For the third quarter in a row we have seen growth from our core cannabis business and I am looking forward to publishing our full quarterly financials at the end of the month, to be sure it has been a good quarter for us, as all of the growth was organic. We continue to unwind our addiction business units and expect our cash position in the short run to remain steady, however, we remain uncertain of the costs resulting from exiting this declining rehab services market and we are reserving a portion of the cash to satisfy these liabilities.”

“It seems the entire capital market for cannabis is challenging at the moment. While on a positive note, we plan to continue to deploy our cash to build cannabis revenue, and we are seeing pretty good organic revenue growth rates post-acquisition, like any small, fast-growing public company, we are somewhat dependent on the overall capital markets to continue acquiring aggressively. My hope is now with three successful quarters under our belt, and with no debt, market participants will be persuaded to become shareholders in our fast-growing company and we can finally set ourselves apart from the many listed cannabis companies in distress. Our strength, I believe, is now proven.”

 

For more information contact:

Ventura Cannabis and Wellness Corp.
Chris Heath
CEO
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of January 8, 2020, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that the Company’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

VENTURA CANNABIS ANNOUNCES EARLY RELEASE OF QUARTERLY FINANCIALS; POSTS 341% IN QUARTER-OVER-QUARTER CANNABIS REVENUE GROWTH WITH 38% GROSS MARGINS; INCREASED CASH TO $4.5 MIILION; BOLSTERS BOARD WITH SALES AND MARKETING EXPERT

VENTURA CANNABIS ANNOUNCES EARLY RELEASE OF QUARTERLY FINANCIALS; POSTS 341% IN QUARTER-OVER-QUARTER CANNABIS REVENUE GROWTH WITH 38% GROSS MARGINS; INCREASED CASH TO $4.5 MIILION; BOLSTERS BOARD WITH SALES AND MARKETING EXPERT

LOS ANGELES, October 28, 2019 (Global Newswire) –Ventura Cannabis and Wellness (CSE: VCAN) (“VCAN”, “Ventura”) announced it posted financial statements for the period ending August 31, 2019, its second fiscal quarter. Additionally, it has added Lloyd Kaplan, a seasoned sales and marketing executive to the Board as a non-executive Director.

Quarterly Highlights:

  • 341% growth in Cannabis revenues with as compared to the previous quarter, rising from $92,000 for the quarter ending May 30, 2019 to $402,000 for the quarter ending August 31, 2019.
  • 38% Gross Margins on Cannabis revenues.
  • Cash increased to $4,531,340 for the quarter ending August 31, 2019.
  • Improved several aspects of the cannabis business (acquired during the quarter ending May 30, 2019) to increase revenue and margins including:
    • Increased revenues by extending operating hours, adding new digital marketing and holding a monthly festival like event with outside vendors and food trucks to encourage spending and engage the community.
    • Broadened the product offerings to include a robust array of cannabis and non-cannabis products to increase individual transaction size.
    • Improved margins by increasing the prices of certain products, expanding the availability of higher priced and higher margin product tiers. Reduced overall product costs by rationalizing supply change management.
    • Reduced staffing and associated costs by more than 25% by streamlining the staffing model and outsourcing key business functions.
  • As expected, addiction services revenues continue to decline as those assets are divested and resulting cash collected. This trend is expected to continue until these assets are fully divested and associated revenues eliminated by the end of the fiscal year.
  • The Company has no debt other than mortgages associated with the real estate assets.

A Review of the Growth Strategy

Ventura Cannabis and Wellness Corp. is focused on brand ownership and targeted market demographics as its revenue growth strategy. It plans to operate primarily on the west coast of the U.S. and has the balance sheet and flexibility to acquire or build cannabis assets that meet its core requirements: growing revenue, sustainable cash flow generation and a unique market position.

In the first fiscal quarter of 2020, shareholders approved the disposition of the rehab addiction centers and overwhelmingly affirmed a new direction for the acquisition and development of revenue generating cannabis assets. In the seven months since, management has generated two quarters of growing cannabis revenues as well as finalizing the disposition of the rehab assets. While the net cash from disposition is difficult to calculate, management expects most of the cash collected can be used to acquire or develop cannabis assets.

Additional Board Member

Lloyd Kaplan has been added to the Board of Directors as a non-executive Director. Residing in California, Mr. Kaplan acts as an investor and consultant to fast growing businesses, including those in the California cannabis market.

Previous to his most recent involvement in the California cannabis market, Mr. Kaplan was a senior executive and founder of iSuppli Corporation, working for almost ten years building the company with marketing partnerships including Goldman Sachs. iSuppli was acquired by HIS, Inc., a NYSE listed company (NYSE:IHS) in 2010 for $100 million USD. Prior to starting iSuppli, Lloyd was an Executive Vice President at Avnet, the world’s largest Electronics Distributor and was responsible for marketing and managing global supplier relationships. He was also the Director for Avnet Design Services, the distributor’s technical support model for ASIC designs, systems engineering and design-win sales. His career also includes senior technical sales and marketing positions at Phillips Electronics and Hughes Aircraft.

“We saw a considerable percentage increase in cannabis revenue growth this quarter,” said Chris Heath, President of Ventura. “For the better part of a year, we have been working on investing time and energy in targeted markets to build our business and we are starting to see the financial results. While we are still a very small business, we are just getting started. We have cash in the bank and no debt. We are working on many different paths to increase our cannabis revenue growth, both in terms of acquiring existing assets as well as developing assets from the ground up. We will remain disciplined on how we invest our cash to ensure our investment in any deal provides measurable returns.”

“As for the current quarter ending November 30, while I expect to see growth, we are continuing to await the process of regulatory approvals for our projects that will generate significant additional revenue,” continued Mr. Heath. “Once these approvals are granted, I expect our future quarters will reflect the kind of growth we saw this quarter. We will spend the next few quarters wrapping up the rehab disposition and finalizing the projects currently underway, including an application to be one of just fourteen licenses in Utah. Finally, I would like to welcome Mr. Kaplan to the Board. I believe his business experience and expertise will benefit us greatly as we turn the corner into a fast-growth mode.”

For more information contact:

Ventura Cannabis and Wellness Corp.
Chris Heath
President
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of October 28, 2019, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that the Company’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

Ventura Cannabis and Wellness Corp. Enters Process for Utah Licensing; Accelerates Disposition of Rehab Assets

Ventura Cannabis and Wellness Corp. Enters Process for Utah Licensing; Accelerates Disposition of Rehab Assets

 

LOS ANGELES, October 10, 2019(Global Newswire) –Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura” or the “Company”) announces it has identified and is pursuing a large opportunity in the state of Utah.

The Company will also accelerate the disposition of all of its rehab assets, both those under binding purchase agreements with earn outs and those under master service agreements.

The plan to accelerate the disposition of the rehab assets is expected to bring in an estimated $3.5m in cash. This cash is expected to come in over the next two quarters more quickly than previously announced, longer term earn out style payments. The result will be  higher than anticipated increases in cash over the next two quarters and the total elimination of rehab revenues within the next quarter.

 

The Utah Opportunity

The state of Utah has recently voted to award only 14 retail cannabis pharmacy licenses for the entire state. The Company plans to pursue being awarded one of these licenses. The Ventura management team took part in a public forum with state officials to seek input on streamlining the process. (https://www.sltrib.com/news/politics/2019/09/17/utah-lawmakers-vote-take/)

 

Acceleration of Disposition of Rehab Assets

The Company intends to dispose of all its rehab assets within the next two quarters, with plans to discontinue revenues by the end of the current quarter as follows:

  • A non-binding agreement to sell Hollywood Detox, which holds the assets, including the real estate, for the in-patient Los Angeles Unit, has been reached. The sale price is $2,128,000 of which $675,000 will be paid upon closing and the remainder will come mostly from accounts receivable collections expected within the next three months.
  • On January 28, 2019, the company announced the sale of a subsidiary, BLVD Centers, Inc. Under the purchase agreement, the buyer, who is also the operator for the entity including the Sawtelle center, agreed to staggered payment terms while they operate the facility and finalize the acquisition. The location was recently searched by authorities. Ventura is working to finalize the disposition of this subsidiary. Management cannot project net proceeds from liquidation.
  • The Portland Unit will be disposed of with an expected net increase of $85,000 in cash over the next 4 months as well as a potential payment of up to $25,000 depending on certain factors.
  • The Highland Unit and the San Diego Unit have been disposed of already and those proceeds are reflected in cash.
  • All of the Corona, California Units are expected to bring proceeds of $930,000 once the real estate is sold.

 

“Now that we know our return metrics on acquiring cannabis assets are highly favorable, we want to quickly reduce distractions from the rehab business. The effect of this decision is that we will eliminate revenues from rehab, and we can be judged clearly as only a cannabis company,” continued Mr. Heath. “We expect we will collect an additional $3.5m in cash in a very short period of time, increasing our cash balance significantly. In doing this, we accomplish many goals in one move: We reduce credit risk from being paid earn outs and payments by the licensee operators, as well as saving costs associated with regulatory and law enforcement issues that seem to arise with these operators, and we build our balance sheet in the case Utah regulators need to feel confident we can execute on the license if granted.”

 

For more information contact:

Ventura Cannabis and Wellness Corp.
Chris Heath
President
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of October 10, 2019, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that the Company’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

Ventura Cannabis and Wellness Corp. (VCAN) Releases Preliminary Quarterly Financial Highlights for the Quarter Ending August 31, 2019

Ventura Cannabis and Wellness Corp. (VCAN) Releases Preliminary Quarterly Financial Highlights for the Quarter Ending August 31, 2019

 

LOS ANGELES, October 2, 2019 (GLOBAL NEWSWIRE)– – Ventura Cannabis and Wellness Corp. (CSE:VCAN)(“Ventura” or the “Company”) released preliminary selected quarterly financial highlights for the quarter ending August 31, 2019:

  • Cannabis revenue for the quarter is expected to exceed $350,000 as compared to $92,000 last quarter; Adjusted EBITDA* is expected to exceed $25,000 for the cannabis operations for the quarter.
  • As reported previously, cash on hand is expected to exceed $4,250,000 at the end of the quarter, which would represent an increase in cash on hand from the previous quarter.
  • Management continues to work to dispose of the addiction services assets as the core focus of the Company is now cannabis revenue growth.

“As the month ends, I wanted to provide an update on our second quarter as a cannabis business to our shareholders,” said Mr. Chris Heath, President of Ventura. “We saw good growth from our core cannabis business and I am looking forward to publishing our full quarterly financials at the end of the month as it has been a good quarter for us. Lastly, we are unaware of anything in our business that would result in the recent volatility in our share price. It seems the entire capital market for cannabis is challenging at the moment. In this environment, it remains important to note that we have cash that can finance our plan to increase our cannabis revenues and cash flows and we are not reliant on the capital markets for funding that growth.”

 

*Adjusted EBITDA is listed for the cannabis operations only; Please note the quarterly financial statements will be on a consolidated basis. The Adjustment to EBITDA is in a one-time reduction of inventory value of the first acquisition after close.

For more information contact:

Ventura Cannabis and Wellness Corp.
Chris Heath
President
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of October 2, 2019, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that the Company’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

Ventura Cannabis (VCAN) Gets Conditional Regulatory Approval to Close Kush Rush Acquisition

Ventura Cannabis (VCAN) Gets Conditional Regulatory Approval to Close Kush Rush Acquisition 

 

LOS ANGELES, August 22, 2019 (GLOBAL NEWSWIRE)– Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis”, “VCAN”, or the “Company”) is pleased to announce it has received conditional regulatory approval from the Bureau of Cannabis Control to close its acquisition of Kush Rush, a Sacramento, California dispensary and delivery service which will serve as a template for the California dispensaries the Company has under contract or application. Kush Rush is expected to generate $500,000 in annual revenue, with 15% operational EBITDA margins, for the first full year of acquisition.

The owner‐operator will continue to operate the business with certain incentives to increase sales and profits.  The Company will pay $210,140 in cash consideration at closing, representing the entire cash component of the deal, additionally the Company will issue 1,157,459 shares, or $428,260 in value, to the owner-operator, for total consideration of $638,400.

For more on Kush Rush and its advanced delivery service, see www.venturacanna.com

  • VCAN has executed binding Purchase Agreements to acquire five dispensaries; with the last three awaiting regulatory approval in California.
  • VCAN has executed a binding Purchase Agreement to acquire a vertically integrated cannabis product company awaiting regulatory approval in California.
  • VCAN has the balance sheet and cash flow to close these deals that comprise the platform to achieve the previously announced annual targets.

Three ways to increase revenue post closing:

  1. Increasing the customer base using targeted VCAN products for seniors and professionals.
  2. Increase customer spending with higher quality, and higher priced VCAN products.
  3. A growing overall market – increasing the estimated annual revenue for the dispensaries under contract for revenue growth after closing based upon operational improvements and marketing initiatives.

The management will look to improve revenues from the acquisition with similar operational and marketing initiatives as it has implemented with the Amberlight acquisition, which has yielded success since the acquisition in May 2019.

 

For more information contact:

Ventura Cannabis and Wellness Corp.
Chris Heath
President
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of August 22, 2019, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

VENTURA CANNABIS GENERATES FIRST EVER QUARTERLY CANNABIS REVENUES; POST FIRST QUARTER FINANCIAL STATEMENTS; PROVIDES CANNABIS REVENUE GROWTH PLAN SYNOPSIS

VENTURA CANNABIS GENERATES FIRST EVER QUARTERLY CANNABIS REVENUES; POST FIRST QUARTER FINANCIAL STATEMENTS; PROVIDES CANNABIS REVENUE GROWTH PLAN SYNOPSIS

 

LOS ANGELES, July 31, 2019 (GLOBAL NEWSWIRE) – Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis” or the “Company”) is pleased to post its first fiscal quarter financial statements as a cannabis company for the quarter ending May 31, 2019. In April 2019 shareholders overwhelmingly approved a change of business from addiction rehabilitation services to cannabis products.

Additionally, management released a synopsis to clearly explain the path to the annual revenue goal of $10 million in cannabis sales with the current balance sheet and purchase agreements in place.

Quarterly Highlights:

P&L:

  • Generated $93,000 in cannabis revenue for the quarter. This revenue is from the Amberlight acquisition and represents less than one month of the quarter.
  • Since closing Amberlight and implementing several operational improvements, management has increased total estimated cannabis revenue guidance for the quarter ending August 31, 2019 from $225,000 to over $300,000 (or $1,200,000 annualized) from the Amberlight cannabis business.
  • As expected, revenues associated with addiction services decreased, due in part to the disposition of certain assets in the business unit in exchange for cash.

Balance Sheet and Cash Flow Statement:

  • Cash as of July 31, 2019 is $4,444,088 as compared to $5,036,000 at the year-end (February 28, 2019).
  • Projected Cash Flow Summary of the for the first two quarters, the period March 1, 2019, to August 31, 2019 (Rounded)
Cash at year-end (February 28, 2019) $5,000,000
ADD: Cash generated from a combination of operational cash flow and cash from the sale of addiction services assets during the first two quarters (the period March 1, 2019 to August 31, 2019) $1,000,000
Sub total $6,000,000
LESS: Cash spent or set aside for transactions (See below) $(1,750,000)
Estimated cash balance end of Q2 2019 $4,250,000

Cash is expected to be $4,250,000 at the end of the second quarter (period ending August 31, 2019) after closing the Amberlight and Kush Rush acquisitions (representing 100% of the cash consideration for both acquisitions).

VCAN expects to continue to generate at least $500,000 in quarterly cash flow from a combination of operational cash flow and cash from the sale of addiction services assets into the third and fourth fiscal quarters of the year.

Cash spent for transactions:

  • The entire cash consideration component for the Amberlight acquisition, (closing announced May 6th, 2019) as well as legal, due diligence and transaction fees associated with the acquisition totaled $683,289. At the time of closing, the acquisition was expected to generate $225,000 per quarter of revenue. That estimate has since been increased to over $300,000 for the quarter ending August 31, 2019 ($1,200,000 annualized).
  • The entire cash consideration component for the Kush Rush acquisition (announced July 2nd, 2019) which is expected to close in the current quarter, as well as legal, due diligence and transaction fees associated with the acquisition totaled $373,439. The acquisition is estimated to generate $125,000 per quarter of revenue ($500,000 annualized).
  • All transactional, legal and due diligence costs totaling $393,889 for the following acquisitions and projects representing an additional $5,300,000 in annualized revenue when closed (all cannabis businesses are anticipated to have 20% EBITDA margins post- integration):
    • Oakland (pending close)
    • CannaSun and UHCC (pending close)
    • Remedy (pending close)
    • Creation of a pipeline project stream to reduce future and current transactional costs.

“I am pleased with our first quarter as a cannabis company,” said Chris Heath, President of Ventura Cannabis. “We held a shareholder vote to transform ourselves into a cannabis company, closed our first cannabis deal, executed purchase agreements to add seven million dollars in annual revenue and built a significant pipeline of acquisition targets. We also improved many marketing and operational aspects of our first acquisition, Amberlight, giving us the confidence to increase our quarterly cannabis revenue projections for the second fiscal quarter.”

“We continue to manage cash wisely,” said Andrew Cross, Chief Financial Officer of Ventura. “We are focused on generating cash this year to invest in cannabis assets. We are actively looking to divest the remaining addiction treatment services assets, including the real estate we hold, which should generate cash in the coming quarters. We are also actively working on methods to increase value from our current and future cannabis assets.”

Ventura Cannabis Revenue Growth Plan Highlights – The Path to $10 Million in Annual Revenues

  • VCAN has a target of $10 million in annual cannabis revenues for its first full year of cannabis operations.

Full year of operations begins after the closing of:

  • Five dispensaries currently under contract (One is closed, awaiting regulatory approval for remaining four).
  • Vertically integrated product business currently under contract.

The First $7 Million in Annual Revenue: Closing Acquisitions

  • VCAN has executed binding Purchase Agreements to acquire five dispensaries, including Amberlight, with expected total annualized sales of $7 million.
  • VCAN has executed a binding Purchase Agreement to acquire a vertically integrated cannabis product company.
  • VCAN has the balance sheet and cash flow to close these deals and generate a minimum of $7 million in projected annual revenues.

The Next $3 Million in Annual Revenue: Adding Post-Acquisition Revenues

Once acquisitions are completed, VCAN has a plan to increase sales in each of the five dispensaries of just $600,000 per year or $50,000 per month to meet the revenue target.

Three ways to increase revenue post-closing:

  1. Increasing the customer base using targeted VCAN products for seniors and professionals.
  2. Increase customer spending with higher quality and higher-priced VCAN products.
  3. A growing overall market – increasing the estimated annual revenue for the dispensaries under contract for revenue growth after closing based upon operational improvements and cost-effective marketing initiatives.

Amberlight is the first “proof of concept”

  • At closing, Amberlight revenues were estimated and reported to be $225,000 per quarter – the quarter ending August 31st will be the first full quarter of revenue to measure actual revenue.
  • Since closing and implementation of marketing and operational initiatives, Amberlight revenue has increased to $300,000 in quarterly revenue.

Kush Rush is expected to close this quarter and be the second “proof of concept”

  • At closing, Kush Rush revenues are estimated and reported to be $125,000 per quarter – the quarter ending November 30th will be the first full quarter of revenue to measure actual revenue.

Once the other California dispensaries are closed, and VCAN products are prominently featured, Management expects additional organic revenue growth from product sales to the network of partner-operated dispensaries.

Chris Heath President

Ventura Cannabis and Wellness Corp. (424) 372-1123

investor@venturacanna.com

www.venturacanna.com

 

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties, and assumptions. The forward-looking information included are made as of July 31, 2019, and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing.

Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law, and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

Ventura Cannabis (VCAN) Continues to Execute on Cannabis Revenue Growth Strategy with a Dispensary and Delivery License in Sacramento; Posts Audited Annual Financial Statements (Ending February 28, 2019) For BLVD Centers; Appoints Jacob Gamble as Chairman

Ventura Cannabis (VCAN) Continues to Execute on Cannabis Revenue Growth Strategy with a Dispensary and Delivery License in Sacramento; Posts Audited Annual Financial Statements (Ending February 28, 2019) For BLVD Centers; Appoints Jacob Gamble as Chairman

LOS ANGELES, July 2, 2019 (GLOBAL NEWSWIRE) – Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis” or the “Company”) is pleased to announce it has secured a license to operate a dispensary in Sacramento, California. Additionally, VCAN has posted audited financial statements on SEDAR (www.sedar.com) for the 12 months ending February 28, 2019 for BLVD Centers Corporation, the rehab business it owned during that period.

Ventura Cannabis was officially launched in April 2019 with the support of its shareholders at its AGM.. Ventura Cannabis has a strategy to become a vertically integrated, branded cannabis product company selling into several underserved segments in the California market, the largest and most diverse cannabis market in the United States. Most of the milestones to accomplish this strategy are completed.

The Company set out the strategy, illustrated in the most recent investor presentation (http://venturacanna.com/).

In summary, the new management team has a three-tiered plan to generate significant revenue growth and cash flow from the fast-growing California cannabis market.

  1. Manufacturing and Distribution License

VCAN has signed a binding Purchase Agreement to acquire a vertically integrated cannabis product license for the state of California, announced May 8, 2019. VCAN is working with the various regulators to close the acquisition of CannaSun, a small product company operating in Los Angeles, California with a projected $750,000 in annual revenues and a projected $150,000 in EBITDA. The target acquisition operates a facility with capacity for at least $12,000,000 in annual revenues at current market prices for vape products. Once closed, with the assumption the four dispensaries under contract are closed and offering the CannaSun products on premium shelf space, Management has projected it can generate $5,000,000 in annualized revenues, with projected $1,500,000 in EBITDA, within the first twelve months of the last closing, representing 50% of the total annualized revenue target for the first year of full operations.

  1. Dispensary Network In California

VCAN has started to build a network of California dispensaries to serve as distribution of the products developed by the CannaSun brand. The Company has announced several purchase agreements ranging from January 2019 to June 2019, including the Sacramento dispensary announced today. Once the last of the four dispensaries under contract are closed, they are expected to generate annualized revenues of an additional $5,000,000, with projected $750,000 in EBITDA, representing the other 50% of the total annualized revenue target for the first year of full operations.

  1. Build Cash from Sale of Rehabs

VCAN has begun selling the BLVD Centers business units to raise additional capital.  Management plans to use the cash to acquire or start additional dispensaries to increase revenues as well as invest in branding and product development of CannaSun and other brands to increase profits.

Management has already successfully completed several milestones this fiscal year to execute on the Company’s strategy:

  1. Executed a binding Purchase Agreement for a vertically-integrated Los Angeles based cannabis product company, with the brands CannaStar and CannaSun.
  2. Executed several binding Purchase Agreements for dispensaries around California under the owner-operator model.
  3. Re-organized the Board of Directors and Management Team.
  4. Changed the Business name from BLVD Centers to Ventura Cannabis and Wellness.
  5. Developed its’ team to market it’s branded products to several segments currently underserved in the California market, including seniors 65 years and older, professional men and women 40-55 years of age and opioid addiction sufferers.
  6. Executed binding Purchase Agreements to sell the BLVD Centers outpatient business line for $5.5M in total cash while retaining rights to sell cannabis products to past, current and future inpatient clients for up to 10 years.
  7. Executed a LOI for the sale of one of its’ inpatient detox units and putting up the other unit for sale.

Sacramento Dispensary

As part of expanding its distribution footprint, VCAN is pleased to announce it has secured an operating partner and location along with a dispensing and delivery license in Sacramento, California. The Company has committed US$300,000 in total cash for start-up expenses, including payments for securing the license and expects to see $500,000 in revenue at break-even the first year of operation, $1,000,000 in revenue with $200,000 in EBITDA in the second year of operation and $1,500,000 in revenue with $525,000 in EBITDA in the third-year operation. The location, which will operate out of a 1546 square foot space, is expected to be operating, generating revenues and selling CannaSun brand products in the current fiscal year.

Additionally, Jacob Gamble, one of the architects of the transition into a cannabis company has been appointed Chairman of the Board of Directors.

 

Year End Audited Financial Statements

According to the audited financial statements, the BLVD Centers business units generated a steady $30M in annual revenues, similar to the audited 2018 Financial Statements. The business reflected in the financials has either been sold or is up for sale. None of the financial results reflect the new cannabis business line. Management expects the full impact of the Amberlight acquisition, which is expected to generate $225,000 a quarter, will be reflected in the second quarter financials. A small portion of the revenue will be recognized in the first quarter ending May 30, 2019 as the deal was approved by regulators on May 15, 2019 The other cannabis acquisitions are awaiting regulatory approval, which can take several months in California.

“We have been quite productive since our launch just three months ago,” said Chris Heath, President of Ventura Cannabis. “We are awaiting our regulatory approvals to close the several dispensaries and the cannabis product company we have under contract. Once closed, we do expect to generate about five million in annualized revenues from our dispensaries and five million in annualized revenues from our product company. We plan to divest the remaining BLVD Centers business units this year as well, using the cash to continue to build our dispensary network and build our revenues to the target of ten million dollars annualized.”

“I recognize it has taken time for these deals to close as we wait for the California regulators to approve our acquisitions,” continued Mr. Heath. “This process is time-consuming, but once complete, we will start seeing the results in revenue and cash flow in our quarterly financials from dispensary revenues as well as our product revenues. We have a twelve million dollar capacity facility in Los Angeles and I am excited to get our product development plan in motion. The more dispensaries we own, the more output we can generate from the facility. We continue to work to expand that network and have the cash and cash flow to continue to make progress on that front.”

“Lastly, we have made capital markets communications a focus recently. For a company with projected annualized revenues of ten million dollars, and a strong balance sheet with no debt, our stock seems severely undervalued relative to its peers. We are working to introduce the new company to the broader market. It has not been easy as this is a crowded space. However, we are quite different from our peers in that we have a long-term experience operating a public company and we have capital and revenues and a plan that is being executed that will be reflected in the upcoming quarterly financials. Again, once the California regulators give us our approval for the current acquisitions, along with deals in the pipeline which we can close with our balance sheet, we should be exiting our first full operational year with ten million dollars in annualized revenue generating cash flow. I think once the market grasps this reality, we will see a better result from the capital markets.”

 

 

For more information contact:

Chris Heath

President

Ventura Cannabis and Wellness Corp.
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. The forward- looking information included are made as of July 1, 2019 and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations. For additional information about forward looking statements and the risks of investing, please refer to the page on our website with the conference call transcript.

 

Ventura Cannabis to Acquire Cannabis Dispensary in Oakland, California

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ALL FIGURES IN CANADIAN DOLLARS UNLESS OTHERWISE SPECIFIED.

Ventura Cannabis to Acquire Cannabis Dispensary in Oakland, California

LOS ANGELES, June 10, 2019 (GLOBE NEWSWIRE) — Ventura Cannabis and Wellness Corp. (“VCAN” or the “Company“) (CSE: VCAN) announced today that it has entered into a binding agreement to acquire a cannabis dispensary based in Oakland, California that specializes in delivery of cannabis to the entire Bay Area. The business is expected to generate $1,000,000 in annual revenue with EBITDA of $100,000, not including the revenues and profits generated from selling Ventura Cannabis branded product lines through the dispensary. The total combined cost, including all fees and expenses, of the transaction, is expected to be a cash outlay of $1,000,000 at closing. Additional payments of $375,000 cash and $295,000 stock will be paid over time depending upon performance. The management will retain operational control of the dispensary.

The dispensary will be added to the network of dispensaries in California that Ventura Cannabis has acquired, pending close. These dispensaries will act as a distribution network for the CannaSun brand and other in-house brands being actively developed.

As previously announced, Ventura Cannabis has signed a purchase agreement to acquire a vertically integrated business that recently launched a vape brand that it manufactures.  At this time, the brand’s sales are limited to its local geographic area. The facility is currently producing cannabis vape products at less than an estimated 7% of capacity, or $750,000 annually.

The facility, at full production, which would require an additional capital expenditure of approximately $550,000, can produce an estimated $12 million in annual revenue with projected 50% gross margins at today’s market prices for vape products in California.

“We continue to build out our large California dispensary network with this agreement,” said Chris Heath, President of Ventura Cannabis. “This Oakland based company specializes in delivery around the Bay Area, and we see significant growth potential as we push our CannaSun product line, and other in-house brands currently in development, through their expanding customer base once we close. The CannaSun brand has yet not been marketed in the Bay Area, and we believe the next generation of CannaSun, and other in-house branded products will appeal to the key demographic of affluent and upwardly mobile Bay area professionals who seek discretion in the use of cannabis products. We continue to work through our large and growing pipeline of attractive acquisition targets. Our goal is to create the largest possible dispensary network in California for ourselves with the smallest cash outlay possible. As our pipeline grows, we continue to see better terms from sellers with healthy, scalable businesses. Our goal of exiting 2019 with a revenue run rate of $10 million annually is intact, and we are comfortable that we have the deal pipeline and balance sheet to achieve that goal.”

Closing of the acquisition is subject to a number of customary conditions, including receipt of all required regulatory approvals.

Additionally, Ventura Cannabis has decided to renegotiate the terms of the Remedy Purchase Agreement announced February 12, 2019 with the aim of reducing the total consideration paid, including the cash outlay. The Agreement has been terminated and the parties are working toward a revised Agreement.

For more information contact:

Chris Heath
President
Ventura Cannabis and Wellness Corp.
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. The forward-looking information included are made as of the date of this release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations.

Ventura Cannabis (VCAN) Updates Investor Presentation After Reaching Several Milestones; Adds Senior Managers to Support Growth Plan; Announces Investor Meetings in Toronto

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ALL FIGURES IN CANADIAN DOLLARS UNLESS OTHERWISE SPECIFIED.

Ventura Cannabis (VCAN) Updates Investor Presentation After Reaching Several Milestones; Adds Senior Managers to Support Growth Plan; Announces Investor Meetings in Toronto

LOS ANGELES, May 27, 2019 (GLOBE NEWSWIRE) — Ventura Cannabis and Wellness Corp. (CSE:VCAN) (“Ventura Cannabis”, “VCAN”, or the “Company”) is pleased to announce it has posted an updated investor presentation to its investor website www.venturacanna.com

In connection with the presentation, members of the management team will meet with bankers and investors in Toronto starting May 28th. Institutional investors and wealth advisors are invited to ask for a meeting by emailing ceo@venturacanna.com.

The presentation covers the next steps to generate cannabis revenue growth in the immediate term now that Ventura Cannabis has secured the Cannastar brand asset, a vertically integrated California cannabis product company with projected annual sales of $750,000 and estimated EBITDA of $150,000.

On March 1, 2019, the Board outlined its most pressing milestones:

  1. Successfully completing the shareholder vote to change business lines from addiction treatment to cannabis. Shareholder vote results announced April 23, 2019.
  2. Securing, through acquisition or application, three types of state and city-issued licenses: a manufacturing license, a distribution license, and a cultivation license in California. Purchase agreement announced May 8, 2019.
  3. Closing the previously announced acquisitions, which include dispensing licenses, totaling an estimated $2.1 million per year in annual cannabis revenues. * First closing announced May 6, 2019.
  4. Build a large and growing pipeline of dispensary acquisition targets, continually looking to reduce the pre-closing revenue multiple price. Pipeline announced May 27, 2019 in investor presentation.
  5. Divesting the two inpatient/detox addiction treatment centers while retaining the rights to supply cannabis to patients to generate additional cash to invest in cannabis assets. First LOI announced May 14, 2019.

Now that the Company has successfully pivoted from an addiction treatment business to a cannabis company and accomplished its initial major milestones that provide a platform for cannabis revenue growth, Ventura Cannabis is pleased to announce it has promoted Jacob Gamble to Vice-Chairman.

“When I was asked to be an agent of change in this company in August of last year, I thought our transition might take up to 18 months to complete,” said Mr. Gamble. “I am pleased that the Board and the management team backed the transition plan and adopted a sense of urgency. Just ten months ago, this company was struggling with a growth plan in a low multiple and stagnant business and needed a direction that could increase the share price and create a sustainable growth business. Today, as we look back, we took many steps very quickly to change our momentum and our accomplishments culminated this month, far sooner than I originally anticipated, with the agreement to acquire a fully integrated California cannabis product company with brand potential.”

“With this acquisition, and once we close the additional dispensary deals we have under contract or LOI, we can target rapid quarterly growth. Again, it took many steps and we arrived far sooner than expected. This was primarily due to the hard work and my close partnership with Chris Heath. I am pleased I decided to transition from a consultant to the CEO in January, that is when I became a large shareholder, and I am even more pleased that I have been appointed to Vice-Chairman now that we have our strategy and have a platform for growth set. I am looking forward to my involvement and ownership in the next phase of our business – revenue growth.”

Further, the Company has appointed Chris Heath as President as the focus turns to dispensary acquisitions under the owner-operator model Mr. Heath implemented for Ventura’s past rehab businesses. Mr. Heath’s owner-operator model increased revenues and cash flow and reduced expenses two years ago in the addiction treatment business when implemented, providing the opportunity and cash to change the Company to a cannabis business without any financing.

“Now that we have successfully completed our transition into a fully vertically integrated California cannabis company with the last announced purchase agreement, we need to focus on executing on our dispensary acquisition growth plan,” said Mr. Gamble. “We plan to do this in a way that really only Chris Heath has shown success and expertise in – generating revenues and cash flow through an owner-operator model for dispensaries. I have worked with Chris daily for ten months now. He is the perfect choice to execute on our dispensary growth plan. He is surrounded by a capable group of board members and Craig Lipsay as our capital markets advisor. He has adopted our sense of urgency and I am looking forward to working with him to continue our success.”

The Board has outlined the next two milestones that are intended to increase quarterly revenues:

  1. Building out VCAN’s network of dispensaries with an owner-operator model, as well as immediately placing the first generation Cannastar product in VCAN owned dispensaries.
    a.  Closing current California Purchase Agreements, LOIs and Term Sheets (totally $11.3M in potential annual revenues).
    b.  Submit additional applications for “de novo” dispensaries, targeting locations where deals already under Term Sheet/LOI/Purchase Agreement are located, to put pricing pressure on deals pre-closing.
    c.  Where possible, close less expensive deals to achieve $10M run rate target by February 2020 with as little cash deployment as possible.
    d.  Continue to build acquisition pipeline to reduce pre-closing multiples.
  2. Finalizing the second generation Cannastar branded product line for launch into the California market with particular focus on the four identified segments:
    a.  Ages 65+ seniors
    b.  Ages 40-55 upwardly mobile professional women
    c.  Ages 40-55 upwardly mobile professional men
    d.  Sufferers of opioid addiction

“First, I want to thank Jacob for his work in developing our vision and instilling a sense of urgency and communication. He has created a culture of urgency and leadership this company was lacking. We are now very different and our achievements to date reflect that change,” said Chris Heath, President of Ventura Cannabis. “As we near the end of our first quarter, our new team and new board has made tremendous progress on our initial milestones we set out for ourselves in March. We held our shareholder vote to change into a cannabis business. We secured a California license to be a vertically integrated cannabis company. We closed our first dispensary deal, bringing in an estimated $900,000 in annual revenue and $100,000 in contributing EBITDA. We have another $7.4 million in revenues under contract or LOI, including the product company with an estimated $750,000 in annual revenues and $150,000 in contributing EBITDA. We have a large pipeline of acquisition and application targets. We have also found opportunities to reduce acquisition pricing even after we execute a purchase agreement, supported in part by competitive pressures from sellers or cities willing to grant applications in similar locations. Additionally, we gain a management team with the product company that is focused on a second generation product and brand development.”

“Our next two milestones are first to expand our California dispensary network through acquisition or application all while pushing our product line through the network and, second, to finalize our second generation CannaSun product line, including next generation branding, design and dosage control,” continued Mr. Heath. “I am confident we can execute on these two milestones with the same urgency we had with our previous milestones, and the expected result in the next several quarters will be excellent growth in our cannabis revenues in our reported quarterly statements.”

Ventura Cannabis has also appointed Andrew Cross as Chief Financial Officer. Mr. Cross has finance experience in several sectors of the global economy ranging from EIC Education, an education company based in Shanghai, to a multi-billion dollar medical device company Don Joy Orthopedics (DJO), which was a publicly traded company before being acquired by Blackstone. Mr. Cross has also served as an advisor in the areas of audit, regulatory accounting and financial structure for several international financial and banking businesses. Before coming to Ventura Cannabis Mr. Cross advised several cannabis companies on 280E tax matters and other regulatory issues facing cannabis companies in the U.S. Mr. Cross has a Bachelor’s of Science (B.S.) degree from the University of California at Los Angeles (UCLA).

“I would like to welcome Andrew to the team,” finished Mr. Gamble. “He has been consulting with us for a few months now and has shown a very good command for both public securities accounting and California cannabis finance with its significant regulatory complications. As we move into the operational part of our strategy, Andrew will be a strong asset to the team.”

*Closing of binding purchase agreements is dependent upon regulatory approvals, lease amendments and satisfaction of other conditions.

Team:
Nitin Kaushal: Non-executive Chairman
Mike Hynes: Non-executive Board Member
Jacob Gamble: General strategy and timelines for execution – Vice Chairman
Chris Heath: Execution of owner-operator acquisition model – President (CEO)
Andrew Cross: Financial accounting and regulatory compliance for California cannabis – Chief Financial Officer

For more information contact:

Ventura Cannabis and Wellness Corp.
(424) 372-1123
investor@venturacanna.com
www.venturacanna.com

Certain statements contained in this presentation constitute “forward-looking information” as such term is defined in applicable Canadian securities legislation. The words “may”, “would”, “could”, “should”, “potential”, “will”, “seek”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “confident” and similar expressions as they relate to the Company. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. The forward-looking information included are made as of the date of this release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN’s ability to access private and public capital could be affected and or could not be available to support continuing operations.