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When it comes to Nano CBD, NEWYOU‘s proprietary Nano-Amplified™ Technology is Small & Mightier than them All!

In the marketplace of CBD, the word nano gets thrown around a lot. We thought we’d clear things up, so recently NEWYOU sat down with CBD Research and Development industry professional Pualani Armstrong for a little small talk about nano, why size isn’t the only thing that matters when it comes to nano and CBD, […]

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In the marketplace of CBD, the word nano gets thrown around a lot. We thought we’d clear things up, so recently NEWYOU sat down with CBD Research and Development industry professional Pualani Armstrong for a little small talk about nano, why size isn’t the only thing that matters when it comes to nano and CBD, and why NEWYOU’s Nano-Amplified™ technology has CBD consumers and experts buzzing with excitement. 

NEWYOU: What is nano? 

ARMSTRONG: “Nano” or nanotechnology is the science, engineering, and technology of making things really really small. Specifically, we’re talking about bringing the size of something down to the nanoscale, which is in the range of about 1 to 100 nanometers. Nanotechnology may sound scary but its used extensively by the food, beverage and pharmaceutical industries for many reasons. By nanoencapsulating active ingredients, companies can help increase the bioavailability and stability of their products and in some cases it can offer a controlled release effect. Ultimately, the goal is to protect active ingredients, make them more bioavailable and get them to the appropriate delivery points quickly and efficiently. Due to the increased bioavailability of nanoencapsulated active ingredients, “nano-emulsions” are considered an advanced delivery system.

NEWYOU: What is nano CBD? 

ARMSTRONG: Using proprietary nanoencapsulation technology, we enhance the bioavailability of Cannabidiol (CBD) by reducing the particle size and converting the CBD into a water-soluble delivery form that is more easily assimilated by the body so that we can achieve maximum efficacy and greater health and wellness benefits. 

NEWYOU: Why use nano CBD?

ARMSTRONG: Nanoencapsulation is the best way to guarantee maximum bioavailability of any active ingredient and it also opens the door to a range of new formulations by creating a water-soluble ingredient. When it comes to absorption, research has shown that we may lose up to 90% of active ingredient by way of conventional delivery via the GI tract and  through the liver where active ingredients are broken down for assimilation. Nano CBD helps the body by offering a direct path to the cell because in a nanoencapsulated form the CBD can cross the blood-brain barrier more quickly bypassing the GI tract entirely. Essentially it gets the CBD to the cell receptor sites as quickly as possible without a lot of loss along the way. 

The reason “nano-amplification” is important is because CBD by itself is actually an oily resin, and is made up of large particle clusters of millions of individual CBD molecules. Because these particles are so large, they typically have to follow the usual path of digestion and go from the mouth to the stomach to the liver so they can finally broken down and assimilated by the body. Like any other vitamins or nutrients, this process can result in a lot of waste and in reality is a very inefficient process. Nanotechnology allows us to be much more efficient about how we deliver CBD meaning that it safely breaks down each CBD particle cluster into its smallest particle form first without affecting the molecular structure so that we can achieve higher bioavailability, targeted function, and ultimately a more powerful therapeutic effect. 

I like to use an analogy here…Imagine that we are on a soccer field and a CBD particle cluster is the soccer ball and your cell membrane is the net designed to stop the soccer ball. Like the net, our cell membrane is a highly selective barrier designed to stop things from passing through. If we wanted to get the ball through the net, we  could try reducing its size first. If we were to replace the soccer ball with a softball we might have a better chance of getting it through the netting. Now how about a golf ball. Better yet..What if instead we could throw handfuls of marbles at the net. If we threw marbles, there’s a good chance most of them would make it through that netting. Well that’s essentially what’s happening with the body when we use a nano CBD product. The CBD is still CBD but we are affecting its size so it has a greater chance of permeating the cell membrane. We know now that bioavailability of nano-emulsified CBD molecules is somewhere around 7-10 times higher than that of traditional CBD and has absorption rates of 80-90% when in the bloodstream compared to about 35% in conventional form, so this is truly where the benefits lie. 

NEWYOU: What are some common misconceptions about nano CBD? 

ARMSTRONG: There is a common misconception that nanoprocessing affects the molecular structure of the CBD or impacts its efficacy negatively.” We are not affecting the molecular structure of the CBD molecule at all. The CBD remains CBD and retains all its molecular  properties and health benefits; instead, we are making each individual particle cluster of CBD significantly smaller, so it can be broken down very quickly so that the individual CBD molecules can quickly reach the CB receptors, which really is a very good thing. Since we have so many more individual molecules now we also have the added benefit of greater surface area so each molecule can do more work. NEWYOU’s proprietary Nano-Amplified™ technology is really one of the best nano processes in the industry. It’s taken years of R&D to get it right. When your CBD is Nano-Amplified™ you know it’s one of the best.

NEWYOU: So how do we do it? 

ARMSTRONG: Well, without sharing too much of NEWYOU’s  “intel” we use concentrated energy waves to break apart the large particles of CBD and reduce their size down to the nanoscale. At this point, we have to prevent the individual molecules and particle clusters from finding their way back to each other. So  to keep those CBD molecules from bunching up again we use a proprietary blend of natural encapsulating agents to wrap the oil loving CBD molecules in a bubble like membrane that has an affinity for both water and fat. The process of encapsulation is very critical as it protects and keeps the CBD in its smallest particle form and results is a water soluble solution of CBD that is “nano amplified” and can be used in any liquid based formula. So, with every Nano-Amplified™ CBD product created there’s a certain level of “good vibrations” added so to speak.

NEWYOU: Why did NEWYOU choose to use Nano-Amplified™ CBD? 

ARMSTRONG: As a manufacturer, we are always looking to create value for our customers and create products that are not only effective, but that won’t break the bank. We started with the end user in mind and knew that we had to create products that were most importantly effective, easy to use, and that tasted great. Using our Nano-Amplified™ Technology allowed us to be incredibly efficient with how we use CBD in our products and opened up so many options for the type of products we could create. When working with traditional CBD you’re really limited to oil based products because as we all know oil and water don’t mix well so  using a traditional CBD oil or isolate in a water based product really isn’t a good solution so we knew we had to come up with something better. By increasing the bioavailability of our products and limiting unnecessary waste we were able to bring down our product costs to the end consumer and use less CBD that what would be typically be required to achieve the same results. You’ll see that our nano CBD products contain less mgs of CBD per unit than the standard CBD oil products. This is because we know our nano CBD will be more bioavailable meaning you need less of it to achieve the same results. Nano CBD products on a mg-mg basis can be slightly more expensive than traditional CBD but typically nano CBD products really are are more cost effective in the long haul  because you need less CBD to achieve the same results. So there is definitely a cost savings as well. 

NEWYOU: What are the benefits of nano CBD like Nano-Amplified™ to the user?

ARMSTRONG: Nano CBD bypasses the blood brain barrier without needing to hit the GI tract before it can be assimilated by the body. This means a more rapid onset and faster relief. Since nano CBD is water-soluble there are many more product options available to consumers now.  This new delivery system has really allowed users to find products that fit into their daily routines so they can get all the benefits of daily CBD supplementation from products that are convenient and easy to use. When it comes to health and wellness and making real life changes to become a “NEW YOU” you have to have products that you enjoy using so that you’ll stick with them and really reap the long-term benefits.

NEWYOU: Is there a difference between “water-soluble” and “nano?”

ARMSTRONG: Yes…Definitely. There are many ways to convert CBD isolates and oil extracts into “water-soluble” forms. Nanoencapsulation like our Nano-Amplified™ technology is one of the ways of achieving this, but while nano CBD is water-soluble NOT all water-soluble products have been nanoencapsulated. Concerning absorption and bioavailability, they are very different materials. You won’t get the increased absorption and the benefits of the greater bioavailability with a standard water-soluble CBD. 

NEWYOU: How is our nano different than those of our competitors? 

ARMSTRONG: Unfortunately, there is a lot of bad science concerning CBD in and of itself and, even more concerning, nano CBD products. There are various processes that can be used to nanoencapsulate  active ingredients like CBD but unfortunately many of these processes use questionable chemical encapsulates that are questionable at best. It took NEWYOU a long time and many years of Research and Development to perfect and create, but we were able to stay true to our mission of bringing health and wellness to the world and  create our proprietary nanomaterial that utilizes 100% natural encapsulating agents and truly maintains all the health and wellness benefits of CBD without unnecessary loss. Plus, all NEWYOU products including our Nano-Amplified™ CBD products are made from pure hemp oil extracts – from registered US farms. Our hemp oil extracts are naturally processed using CO2 supercritical extraction and tested (and retested) for potency and safety at a third party accredited laboratory. 

NEWYOU: Can you get high from our nano CBD? 

ARMSTRONG: No! We utilize a pure CBD isolate to make NEWYOU’s Nano-Amplified™ CBD which means that it is still THC-Free and can really be used by anyone anywhere. To support our quality pledge all of our raw materials undergo rigorous lab testing before being introduced into any product. Once the final product is produced we conduct another round of testing to ensure that the CBD potency on the label matches what’s in the bottle. You can find these results on our COAs.

About Pualani Armstrong:

Pualani Armstrong started her career in product development working alongside a team of chemists to create a portfolio of efficacious skincare formulas for a contract manufacturer. Since 2015, she has worked exclusively in the CBD industry, analyzing consumer trends to predict the next big thing in product formula, function, and delivery honing her passion for innovation and brand development along the way. Her professional work with CBD has contributed to the growth of some of the most widely recognized brands in the Cannabis industry today and her career achievements include the successful launch of over 30 new topical and oral CBD formulasincluding the first clinically tested CBD skincare line. Pualani’s wealth of industry knowledge, technical skills, and scientific training, make her a valuable asset to NEWYOU as she works to identify new consumer trends and manage product development from creation to distribution.

The post When it comes to Nano CBD, NEWYOU‘s proprietary Nano-Amplified™ Technology is Small & Mightier than them All! appeared first on NEWYOU.

Source: https://newyoupro.com/when-it-comes-to-nano-cbd-newyous-proprietary-nano-amplified-technology-is-small-mightier-than-them-all/

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Auxly Reports Third Quarter 2020 Financial Results

Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) (“Auxly” or the “Company“) today released its financial results for the three and nine months ended September 30, 2020. These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com. All amounts are Canadian dollars except common shares (“Shares”) and per Share amounts. […]

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Auxly Cannabis Group Inc. (TSX.V – XLY) (OTCQX: CBWTF) (“Auxly” or the “Company“) today released its financial results for the three and nine months ended September 30, 2020. These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com. All amounts are Canadian dollars except common shares (“Shares”) and per Share amounts.

Q3 2020 Highlights and Subsequent Events

  • Total net revenues of $13.4 million for the three months ended September 30, 2020, comprised of $12.6 million of cannabis net revenues, an 85% increase from the previous quarter, and research revenues from KGK of $0.9 million.
  • Selling, General and Administrative expenses decrease to $11.4 million.
  • Adjusted EBITDA improves to ($6.8) million.
  • The Company continued to introduce new products to drive future growth with the launch of the Back Forty brand, Foray’s Hard Maple Caramels, Dosecann’s omega-Rich Ahiflower® Oil Capsules and Kolab Kalifornia dried flower, positioning the Company as the #1 LP in national edible and vape sales year to date, with a blended 18% market share (1).
  • Strengthened its Board of Directors with Independent Director, Ms. Genevieve Young, assuming the role of Chair and welcoming a new Independent Director, Mr. Vikram Bawa.
  • Increases cash position by $20 million with recently announced $12 million bought deal offering and $8 million non-dilutive financing.

Q3 Highlights

(000’s) Three months
ended Sept 30,
2020
Three months
ended Sept 30,
2019
Change Percentage
Change
Nine months
Ended Sept 30,
2020
Nine months
Ended Sept 30,
2019
Change Percentage
Change
Total revenues $            13,449 $                 1,617 $        11,832 732% $          31,918 $                5,196 $     26,722 514%
Net losses* (17,799) (17,255) (544) -3% (58,460) (44,853) (13,607) -30%
Adjusted EBITDA** (6,783) (11,056) 4,273 39% (24,213) (26,804) 2,591 10%
Weighted Average Shares outstanding 631,949,685 594,591,824 37,357,861 6% 628,341,762 590,718,186 37,623,576 6%
*Attributable to shareholders of the Company
**Adjusted EBITDA is a Non-IFRS financial measure. Refer to the Non-IFRS Financial and Performance Measures section in the MD&A for definitions

(1) Source: Headset Canadian Insights as of October 31, 2020

(000’s) Sept 30, 2020 December 31, 2019 Change Percentage Change
Cash and equivalents $ 13,573 $ 44,134 $ (30,561) -69%
Total assets $ 381,598 $            411,182 $ (29,584) -7%
Debt $       112,358 $          95,438 $       16,920 18%

Hugo Alves, CEO of Auxly, commented: “Our team entered Q3 committed to driving sales growth, reducing costs and improving product availability. Our efforts resulted in a quarter over quarter increase in net revenues of approximately $5 million and a reduction in SG&A of approximately $2 million. Our improved performance was driven primarily by continued improvements in operational and supply chain capabilities, expanding distribution, better alignment of our resources with our commercial objectives and, of course, our continued focus on understanding our consumers and delivering cannabis products that delight them. We believe that our efforts are resonating with consumers and that Auxly has quickly established itself as one of the leading cannabis companies in Canada.”

Results of Operations

(000’s) Three months
Ended Sept
30, 2020
Three months
Ended Sept
30, 2019
Nine months
Ended Sept
30, 2020
Nine months
Ended Sept
30, 2019
   
Revenue    
Revenue from sales of cannabis products $        15,243 115 $  34,030 851
Research contracts and other 862 1,502 3,526 4,345
Excise taxes (2,656) (5,638)
Total Net Revenues 13,449 1,617 31,918 5,196
   
Cost of Sales     
Costs of finished cannabis inventory sold 9,536 59 19,656 435
Research contracts and other 511 1,453 1,333 3,825
Inventory (gain)/impairment (312) 1,074 1,630 1,074
Gross profit excluding fair value items 3,714 (969) 9,299 (138)
   
Unrealized fair value gain/(loss) on biological transformation 172 (135) 322 (672)
Realized fair value loss on inventory 2 (48) (193) (243)
Gross Profit 3,888 (1,152) 9,428 (1,053)
   
Expenses     
Selling, general, and administrative expenses 11,363 16,594 39,019 38,887
Depreciation and amortization 2,310 1,527 7,123 4,002
Interest expense 3,664 2,520 9,219 7,951
Total expenses 17,337 20,641 55,361 50,840
   
Other incomes / (losses)    
Fair value loss of financial instruments accounted under FVTPL (34) (5,778) (4,670) (6,208)
Interest income 381 858 787 3,837
Gain/(impairment) of long-term assets 144 (4,362)
Impairment of intangible assets and goodwill (1,800)
Loss on settlement of assets and liabilities and other expenses (3,309) (1,413) (3,862) (1,288)
Share of loss on investment in joint venture (1,214) (838) (2,995) (1,390)
Foreign exchange (loss) / gain (466) (75) 122 (1,015)
Total other losses (4,498) (7,246) (14,980) (7,864)
   
Net Loss before income tax (17,947) (29,039) (60,913) (59,757)
Income tax recovery 90 11,524 657 14,247
Net Loss $ (17,857) $ (17,515) $ (60,256)
$ (45,510)
   
Net loss attributable to shareholders of the Company  $  (17,799) $           (17,255) $ (58,460) $ (44,853)
Net loss attributable to non-controlling interest $ (58) $ (260) $ (1,796) $ (657)
   
Adjusted EBITDA $ (6,783) $ (11,056) $ (24,213)
$ (26,804)
   
Net loss per common share (basic and diluted) $ (0.03) $ (0.03) $ (0.09)
$ (0.08)
   
Weighted average shares outstanding (basic and diluted) 631,949,685 594,591,824 628,341,762 590,718,186

Revenue

For the three months ending September 30, 2020, cannabis revenues were $15.2 million as compared to $0.1 million in the same period in 2019. Net cannabis revenues of $12.6 million during the period were comprised of approximately 80% Cannabis 2.0 Products, with the remainder from Cannabis 1.0 Products, and represented a sequential increase of $5.8 million or approximately 85% over the second quarter of 2020. During the third quarter of 2020, approximately 75% of cannabis net revenues originated from sales to British Columbia, Alberta and Ontario. Net revenues improved from higher vape product sales as a result of pricing adjustments initiated in the second quarter, new product offerings such as 1 gram vape cartridges, the launch of Robinsons dried flower, expansion of dried flower and pre-rolls under the Kolab Project brand, and revenues from the sale of dosist products. Net cannabis revenues of $28.4 million year to date reflect strong Cannabis 2.0 Product sales in the vape and edible categories as well as the third quarter impact of dried flower and dosist product sales.

Research and other revenues of $0.9 million for the third quarter of 2020 and $3.5 million year to date decreased by approximately $0.6 million and $0.8 million during the comparable periods in 2019. Revenues are in support of third-party research contracts which can fluctuate significantly during the term of the contract based upon the achievement of milestones. Where milestones are not met, revenues are deferred on the balance sheet which may result in timing differences in earnings. The decline in revenues year to date are due to the impact of the COVID-19 pandemic and the completion of clinical trials, partially offset by the introduction of new regulatory advisory services.

Gross Profit/Loss

Auxly realized a gross profit of $3.9 million following fair value adjustments during the third quarter of 2020 and $9.4 million year to date. This compares with gross profits of $(1.2) million and $(1.1) million in the comparable periods of 2019. Gross profits for the three months ended September 30, 2020 were comprised of $3.5 million and a 28% margin from Canadian cannabis operations and $0.4 million and a 41% margin from research operations. Cannabis gross margins improved slightly over the second quarter of 2020 in part due to strong dried flower margins, partially offset by inefficiencies associated with the reconfiguration of product manufacturing at the Dosecann facility following the completion of the second floor expansion. During the nine months ended September 30, 2020, gross profits were comprised of $8.6 million from Canadian cannabis operations, $2.2 million from research operations, partially offset by impairment charges of $1.4 million primarily related to Inverell’s stored biomass.

Total Expenses

Selling, general and administrative expenses (“SG&A”) are comprised of wages and benefits, office and administrative, professional fees, business developments, share-based payments, and selling expenses. For the three and nine months ended September 30, 2020, SG&A expenses were $11.4 million and $39.0 million respectively, or a decrease of $5.2 million and an increase of $0.1 million over the same respective periods in 2019. SG&A during the quarter declined by $2.3 million as compared to the second quarter of 2020.

For the three and nine months ended September 30, 2020, wages and benefits were $5.3 million and $19.3 million, respectively, or an increase of $0.5 million and $6.3 million over the same respective periods in 2019. The nine month increase of $6.3 million was primarily driven by workforce increases to support Cannabis Product sales, primarily related to the operations and commercial teams, the absorption of employees arising from the foreclosure of Curative and compensation and severance accruals recognized during the period. Expenses in the third quarter of 2020 reflect severance accruals in conjunction with SG&A savings announced in October of 2020 offset by unfilled vacancies which occurred in the second quarter of 2020, employee wage subsidies received by KGK and reduction of Inverell staffing.

Office and administrative expenses of $3.0 million in the third quarter of 2020 increased by $0.1 million and $2.4 million to $8.5 million year to date compared to the same periods in 2019 primarily as a result of increased operating costs associated with the development and sale of Cannabis Products in 2020 and the implementation of an organization-wide ERP system.

Auxly’s professional fees were $0.4 million and $2.3 million for the three and nine months ended September 30, 2020, as compared to $2.4 million and $5.3 million over the same respective period in 2019. Professional fees incurred during the periods primarily related to accounting fees, regulatory matters, reporting issuer fees, ongoing legal proceedings, recruiting fees in conjunction with hiring, consulting fees, and fees associated with financing activities. The decrease in professional fees was driven by the reduction in professional services and professional services contracts in 2020.

Business development fees of $0.2 million in the third quarter of 2020 decreased by $0.8 million and $1.9 million to $1.2 million year to date as compared to the same periods in 2019. The decreases are primarily due to a reduction in acquisition and travel related expenses.

Selling expenses for the three and nine months ended September 30, 2020 were $1.4 million and $3.8 million, respectively, as compared to nominal fees recognized over the same respective periods in 2019. The increase is directly attributable to cannabis sales activities comprised of brokerage fees earned by Kindred Partners and marketing initiatives for Cannabis Products.

For the three and nine months ended September 30, 2020, share-based compensation was $1.2 million and $3.9 million, a decrease from the $5.4 million and $11.1 million over the same respective periods in 2019. The reduction in expenses in 2020 reflects the impact of significantly fewer option grants and the impact of lower share prices.

Depreciation and amortization expenses were $2.3 million in the third quarter of 2020 and $7.1 million year to date, as compared to $1.5 million and $4.0 million during the same respective periods in 2019. The increase in expense is primarily as a result of greater in use capital projects and additional capital expenditures in 2020. During 2019, several of these projects remained under development.
Interest expenses were $3.7 million for the three months ended September 30, 2020 and $9.2 million for the nine months ended September 30, 2020. Interest expenses are driven by interest charges of 6% on the then outstanding 2018 convertible debentures, 4% on the Imperial Brands convertible debentures, 7.5% on the convertible debenture tranches issued in 2020, and the non-cash accretion of placement and other related fees being recognized over the terms of the respective debentures.

Total Other Incomes and Losses

Fair value changes on financial instruments included in this section arise on changes in value of promissory notes and level two securities held. For the quarter ended September 30, 2020, the Company reported an insignificant fair value loss, as compared to a $5.8 million loss in the previous year. For the nine months ended September 30, 2020, the Company reported a $4.7 million fair value loss, as compared to a $6.2 million fair value loss in the previous year. Fair value changes reflect losses on promissory notes and level two securities held. All promissory notes were repaid or fully impaired as at December 31, 2019.

The Company recorded interest income of $0.4 million during the third quarter for 2020 and $0.8 million year to date, which is a decrease from $0.9 million generated during the third quarter of 2019 and $3.8 million year to date 2019. Interest income is earned on notes receivable balances, investments in convertible debt, and interest on cash and cash equivalents.

During the three-months ended September 30, 2020, the Company recognized an impairment gain on long-term assets of $0.1 million and an impairment loss of $4.4 million year to date which represents the impairment of the Company’s LATAM cash generating unit (“CGU”), Inverell as reported in the second quarter of 2020.

Losses on settlement of assets and liabilities and other expenses for the three months ended September 30, 2020 were $3.3 million, primarily relating the reversal of a gain on non-monetary inventory transfers with another licensed producer which was recorded in the first quarter of 2020. The inventory was returned during the quarter also resulting in the recognition of a liability of approximately $5 million in accounts payable and other liabilities and an asset held in inventory. The Company anticipates that this liability will be settled during the first half of 2021. Year to date losses of $3.9 million also include accrued legal settlements related to a commercial lease agreement with 346 Spadina Inc., and a credit loss provision.

The loss on investment in joint venture of $1.2 million for the three months ended September 30, 2020 and $3.0 million year to date, increased by $0.4 million and $1.6 million over the comparable period in 2019. These amounts reflect the Company’s proportionate share of Sunens earnings. Sunens has received its cultivation licence and processing licence and was cultivating cannabis during the third quarter of 2020. Sunens anticipates having product available for sale to other licenced producers in the fourth quarter of 2020.

Auxly is exposed to foreign exchange fluctuations from the U.S. dollar to CAD dollar exchange rate primarily related to Inverell. During the three and nine months ended September 30, 2020, the Company reported a foreign exchange loss of $0.5 million and a gain of $0.1 million, respectively, as compared to foreign exchange losses of $0.1 million and $1.0 million over the same respective periods in 2019.

Net Losses

Net losses attributable to shareholders were $17.8 million with a net loss of $0.03 per share on a basic and diluted basis in the third quarter of 2020, and $58.5 million with a net loss of $0.09 per share on a basic and diluted basis year to date. This compares to a net loss of $17.3 million attributable to shareholders and $0.03 per share on a basic and diluted basis and $44.9 million and $0.08 per share on a basic and diluted basis, over the same respective periods in 2019. The increase in net losses of $0.5 million during the third quarter and $13.6 million year to date, over the comparable periods in 2019, was primarily attributable to a tax recovery of $11.5 million recorded in the third quarter of 2019.

Adjusted EBITDA

Adjusted EBITDA improved by approximately $4.3 million to $(6.8) million and improved by $2.6 million to $(24.2) million for the three and nine months ended September 30, 2020 as compared to the same period in 2019 The increase was primarily driven by gross profits from cannabis sales partially offset by SG&A.

Outlook

While Auxly has established itself as a market leader in Cannabis 2.0 Products, with its current product offering achieving leading national market shares, the Company is also seeing increasing success with its dried flower product offerings. The launch of the premium Robinsons flower offering, Kolab’s curated “Grower Series” collaborations and Kolab pre-rolls have firmly established the Company as an up-and-coming player in the dried flower market. The Company’s objectives for the remainder of 2020 and the first half of 2021, which may be impacted by the COVID-19 pandemic (see further discussion in the MD&A under “COVID-19 Pandemic”), continue to be concentrated on Canadian operations. Broadly, the Company’s objectives for the period are as follows:

  • Continued leadership and strength in the Cannabis 2.0 Products market;
  • Focused expansion of Cannabis 1.0 Products;
  • Finish remaining construction and equipment commissioning at Dosecann and continue to refine and improve related processes and throughput capabilities;
  • Manage SG&A to the scale of operations; and
  • Continue to take measures to improve cash flows and finance the business.

Auxly will continue to evaluate opportunities to bring new and exciting products to consumers as the Company continues to realize its vision of becoming a global leader in branded cannabis products that deliver on the consumer promise of quality, safety and efficacy.

ON BEHALF OF THE BOARD
“Hugo Alves” CEO

About Auxly Cannabis Group Inc. (TSX.V: XLY)

Auxly is an international cannabis company dedicated to bringing innovative, effective, and high-quality cannabis products to the medical, wellness and adult-use markets. Auxly’s experienced team of industry first-movers and enterprising visionaries have secured a diversified supply of raw cannabis, strong clinical, scientific and operating capabilities and leading research and development infrastructure in order to create trusted products and brands in an expanding global market.

Learn more at www.auxly.com and stay up to date at Twitter: @AuxlyGroup; Instagram: @auxlygroup; Facebook: @auxlygroup; LinkedIn: company/auxlygroup/.

Investor Relations:

For investor enquiries please contact our Investor Relations Team:
Email: IR@auxly.com
Phone: 1.833.695.2414

Media Enquiries (only): 

For media enquiries or to set up an interview please contact:

Email: press@auxly.com

Notice Regarding Forward Looking Information:

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the proposed operation of Auxly, its subsidiaries and partners, proposed timelines for the build-out, licencing and commercialization of the Company’s facilities and projects, the Company’s response to the COVID-19 pandemic, the impact of the COVID-19 pandemic on the Company’s current and future operations, the Company’s execution of its innovative product development, commercialization strategy and expansion plans, the anticipated benefits of the Company’s partnerships, joint ventures, research and development initiatives and other commercial arrangements, the expectation and timing of future revenues, future legislative and regulatory developments involving cannabis and cannabis products, the timing and outcomes of regulatory or intellectual property decisions, the relevance of Auxly’s subsidiaries’ and partners’ proposed products, consumer preferences, political change, competition and other risks affecting the Company in particular and the cannabis industry generally.

A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to, whether: Auxly’s subsidiaries and partners are able to obtain and maintain the necessary regulatory authorizations to conduct business, the Company is able to successfully manage the integration of its various business units with its own, the Company’s subsidiaries and partners obtain and maintain all necessary governmental and regulatory permits and approvals for the operation of their facilities and the development and sale of current and proposed products, and whether such permits and approvals can be obtained in a timely manner; the success of Dosecann and KGK’s research strategies, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process, the acceptance and demand for current and future Company products by consumers and provincial purchasers, and general economic, financial market, legislative, regulatory, competitive and political conditions in which the Company and its subsidiaries and partners operate will remain the same. Additional risk factors are disclosed in the annual information form of the Company for the financial year ended December 31, 2019 dated May 13, 2020.

New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The forward-looking information is being provided for the purposes of assisting the reader in understanding the Company’s financial performance, financial position and cash flows as at and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned that such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.

The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Source: https://technical420.com/cannabis-article/auxly-reports-third-quarter-2020-financial-results/

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Israel Will Be One Of The Cannabis Sectors Major International Growth Markets To Watch In 2021

Earlier this month, we highlighted the Israeli cannabis industry as one of the most exciting emerging markets due to the climate being prefect for cultivating cannabis and the export opportunity to the European Union (EU). We want to briefly talk about the importance of these two factors so our readers can better understand our favorable […]

The post Israel Will Be One Of The Cannabis Sectors Major International Growth Markets To Watch In 2021 appeared first on Technical420.

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Earlier this month, we highlighted the Israeli cannabis industry as one of the most exciting emerging markets due to the climate being prefect for cultivating cannabis and the export opportunity to the European Union (EU).

We want to briefly talk about the importance of these two factors so our readers can better understand our favorable view on the market. Israeli cannabis producers have been able to grow cannabis for less than $0.40 per gram (all-in costs). In Canada, the all-in cost per gram is closer to $1 and this provides Israeli producers with an economic advantage.

From a geographic standpoint, Israel is located much closer to the EU than Canada. As a result, shipping costs from Israel to the EU are lower than shipping costs from Canada to the EU. This provides Israeli cannabis producers with another important advantage and we are favorable on the impact this has on margins.

Today, we want to highlight two Canadian Licensed Producers (LPs) that recently entered the Israeli cannabis market through strategic supply agreements. We believe this trend is just getting started and expect these operators to report impressive growth from the Israeli market on a going forward basis.

Earlier this week, Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) announced a two-year strategic supply agreement with Cantek Holdings which is considered to be a leading Israeli medical cannabis operator. Under the agreement, the Canadian cannabis company will supply Cantek with at least 4,000 kilograms of bulk dried flower per year.

Under the agreement, Cantek has the option to extend the agreement further than two years and we will monitor how both companies benefit from it. The cannabis that is provided to Cantek will be processed and co-branded under the Aurora and Cantek brand names for the Israeli market. The agreement also provides the potential for entering additional international markets and we are bullish on the growth prospects that are associated with this.

Prior to announcing the agreement with Cantek, Aurora Cannabis has been highly focused on the cannabis opportunity in the EU. The work that Aurora Cannabis has previously done will provide the relationship with the infrastructure that is needed to expand into additional markets and are favorable on this aspect of the story.

The relationship provides Aurora Cannabis with a great opportunity to expand its medical cannabis brand and its intellectual property in one of the most attractive international markets. From a credibility standpoint, we believe the relationship is an important development for Aurora Cannabis and will monitor how the brand continues to expand under a new management team.

Cantek has attractive leverage to the entire value chain of Israel’s medical cannabis industry and has formed strategic partnerships with prominent drugstore chains, distribution companies, clinics in Israel.

Following the signing of the agreement, Aurora Cannabis has attractive leverage to two major international markets, Germany and Israel. These countries are two of the largest legal medical cannabis importers in the world and we will monitor how the management team continues to focus on the international side of the industry.

HEXO Corporation (HEXO: NYSE) (HEXO: TSX) is another large-scale Canadian cannabis producer that has attractive leverage to the Israeli cannabis market. A few months ago, the company announced a strategic supply agreement with Breath of Life (BOL) which is also considered to be a leader in the Israeli market.

During the last quarter, HEXO has reported a few substantial developments and we believe the moves that it has made in Israel are going to play an important role in the success of the business over the long-term. Similar to Cantek, BOL has formed strategic distribution network and we are favorable on this aspect of the story.

BOL is a GMP Israeli medical cannabis company that has an established distribution network through pharmacies. BOL works with Super-Pharm, Israel’s largest pharmacy retailer with 258 locations and we are favorable on the amount of distribution that BOL brings to the relationship with HEXO. 

For HEXO, we believe that the relationship with BOL represents a major growth opportunity and think that it could help turn the operation around. The focus on the international cannabis market is an important aspect of the HEXO story and we will monitor how this side of the business ramps up in 2021 and beyond.

If you are interested in learning more about how Aurora Cannabis and HEXO are positioned to capitalize on the Israeli cannabis market, please send an email to support@technical420.com with the subject “Israeli Cannabis Companies” to be added to our distribution list.

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Source: https://technical420.com/cannabis-article/israel-will-be-one-of-the-cannabis-sectors-major-international-growth-markets-to-watch-in-2021/

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Fire & Flower Enters into Agreement to Acquire College Street Cannabis Store

Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) and its wholly-owned subsidiary Fire & Flower Inc. (collectively, “FFHC”, “Fire & Flower” or the “Company”), a leading Canadian recreational cannabis retailer, is pleased to announce that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Quad Nine Investments Inc., […]

The post Fire & Flower Enters into Agreement to Acquire College Street Cannabis Store appeared first on Technical420.

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Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) and its wholly-owned subsidiary Fire & Flower Inc. (collectively, “FFHC”, “Fire & Flower” or the “Company”), a leading Canadian recreational cannabis retailer, is pleased to announce that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Quad Nine Investments Inc., which owns and operates a licensed cannabis retail store at 717 College Street, Toronto, Ontario currently operating as “Blaze Cannabis”the (“Acquisition”).

Completion of the acquisition will add Fire & Flower’s eighth fully owned, open and operating location in the province of Ontario. The Company continues to focus on the opening of additional cannabis retail stores in the province that have already completed construction.

“This proposed acquisition will represent Fire & Flower’s continued strategy to further grow our omni-channel, technology-enabled retail network in the province of Ontario and across the country, both through acquisition plus organic growth.” said Trevor Fencott, Chief Executive Officer of Fire & Flower. “This additional store expands our operating base and brings us closer to our goal of positive operating EBITDA.”

The acquisition includes a current Retail Operator License and Retail Store Authorization from the Alcohol and Gaming Commission of Ontario (the “AGCO”), which has issued a no-objection letter in respect of the Acquisition.

The total purchase price in connection with the Acquisition is $900,000 plus the net working capital of the business (including inventory) at the date of closing in cash plus 124,069 common shares of FFHC.

The Acquisition is subject to customary closing conditions, including the receipt of a no-objection letter from the AGCO and approval from the Toronto Stock Exchange, each of which has already been received.

More information on the grand opening dates and times of the store, once transitioned to the Fire & Flower brand, will be announced on the Company’s website at http://fireandflower.com/.

About Fire & Flower
Fire & Flower is a leading purpose-built, independent adult-use cannabis retailer poised to capture significant Canadian market share. The Company guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HifyreTM digital platform and SparkTM program connect cannabis consumers with the latest cannabis products and deliver cutting edge insights into evolving consumer behaviours. The Company’s leadership team combines extensive experience in the cannabis industry with strong capabilities in retail operations.

Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc., a licensed cannabis retailer that owns cannabis retail store licences in the provinces of AlbertaSaskatchewanManitoba and Ontario and the Yukon territory.

Through its strategic investment with Alimentation Couche-Tard Inc., the Company has set its sights on the global expansion as new cannabis markets emerge.

More information on Fire & Flower can be found at www.fireandflower.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “project” and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions “may” or “will” occur. These statements are only predictions.

Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to the Fire & Flower.  Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements, including with respect to the closing of the Acquisition.  Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower, which may cause Fire & Flower‘s actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.

No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct.  Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company’s business are contained under the heading “Risk Factors” in the Company’s short form base prospectus dated November 28, 2020 and annual information form dated April 29, 2020 and the heading “Risks and Uncertainties” in the management discussion and analysis for the thirteen and twenty-six weeks ended August 1, 2020 filed on its issuer profile on SEDAR at www.sedar.com.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

SOURCE Fire & Flower Holdings Corp.

For further information: Investor Relations, investorrelations@fireandflower.com, 1-833-680-4948; Media Relations, media@fireandflower.com, 780-784-8859

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Source: https://technical420.com/cannabis-article/fire-flower-enters-into-agreement-to-acquire-college-street-cannabis-store/

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