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.
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.