Bay Street News

WeedMD Reports Third Quarter 2018 Financial Results

Increased Revenue by 461% Year-Over-Year Prior to Opening of Canada’s Adult-Use Market

Experienced Leadership Team in Place to Navigate Rapid Expansion Phase and Accretive Business Development Initiatives

Secured Sales Licence for State-of-the-Art Hybrid Greenhouse in Strathroy, Ontario, with Fully-Funded Path to 500,000 Square Feet of High-Quality, Cost-Effective Cannabis Cultivation

TORONTO, Nov. 29, 2018 (GLOBE NEWSWIRE) — WeedMD Inc. (TSX-V:WMD) (OTCQX:WDDMF) (FSE:4WE) (“WeedMD” or the “Company”), a federally-licensed producer and distributor of medical-grade cannabis, is pleased to report its financial results for the three and nine months ended September 30, 2018.  

For the quarter ending September 30, 2018, the Company reports revenues of $2.0 million, representing a year-over-year increase of 461%. Revenues of $5.2 million in the first nine months of fiscal 2018 represents a 784% increase compared to the same period during the 2017 fiscal year.

“The third quarter was another strong growth period for WeedMD. We increased revenues by more than 450% compared to the prior year and rapidly ramped up production capacity at our state-of-the-art hybrid greenhouse. Through strategic additions to our highly experienced management team, we strengthened our production, sales, marketing, and business development capabilities,” said Nichola Thompson, Interim CFO of WeedMD. “Our fully-funded path to more than 500,000 square feet of high-quality, cost-effective cultivation footprint provides us with significant advantages to capitalize on a tight cannabis supply market at the onset of the Canadian adult-use market.”

“We are exploring opportunities to expand internationally, including having recently supplied our industry-leading cannabis genetics to Israel’s Pharmocann and Australia’s Medifarm,” said Keith Merker, CEO of WeedMD. “As the cannabis industry evolves into increasingly differentiated, high-margin product offerings across the medical and adult-use segments, WeedMD has positioned itself to take full advantage of market opportunities in Canada and internationally.”

Financial Highlights

For the three month period ended September 30 2018   2017  
  ($)   ($)  
Revenue 2,001,369   356,479  
Income (Loss) and Comprehensive Income (Loss) 9,904,660   (557,807)  
Adjusted Operating Loss* (1,367,207)   (583,714)  
Cash Used from Operations (1,076,709)   (1,016,408)  
Earnings (Loss) per Share (Basic and Fully Diluted) 0.09   (0.01)  
     
     
As at   September 30, 2018   December 31, 2017  
  ($)   ($)  
Cash and Cash Equivalents 36,059,767   24,692,678  
Total Assets 87,698,288   39,605,187  
Total Liabilities 9,856,688   14,472,639  
Working Capital 44,949,614   25,713,807  

*Adjusted Operating Loss is not a recognized measurement under IFRS and this data may not be comparable to data presented by other companies. Management believes Adjusted Operating Loss to be an important measure of the Company’s day-to-day operations, by excluding non-cash gains and losses and/or non-recurring items.

Corporate Highlights During and Subsequent to the Quarter ended September 30, 2018

The Company’s financial statements and related management’s discussion and analysis for the period are available under the Company’s profile on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

About WeedMD Inc.

WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of cannabis and cannabis oil for both the medical and adult-use markets under the Cannabis Act. The Company operates two facilities: a 26,000 sq. ft. indoor facility in Aylmer, Ontario and a state-of-the-art greenhouse facility located in Strathroy, Ontario. The Greenhouse currently has 44,000 square feet of licensed space in production and is expected to have a total footprint of more than 500,000 square feet online by year-end 2018. WeedMD has a multi-channeled distribution strategy that includes supply agreements with Shoppers Drug Mart and provincial distribution agencies, as well as through strategic relationships across the seniors’ market in Canada.

For more information, access WeedMD’s investor presentation here and recently updated corporate video here.

Follow WeedMD On:

Facebook: https://www.facebook.com/weedmd/ 
LinkedIn: https://www.linkedin.com/company/weedmd/?originalSubdomain=fr 
Twitter: https://twitter.com/WeedMD 
Instagram: https://www.instagram.com/weedmd/ 

For further information, please contact:

WeedMD Inc.

Keith Merker, Chief Executive Officer
Tel: 519-765-2440 Ext. 222
Email: investor@weedmd.com

To learn more, visit us at www.weedmd.com

For Media Inquiries:

Marianella delaBarrera
VP, Communications & Corporate Affairs
Tel: 416-897-6644
Email: marianella@weedmd.com

Cautionary Statement on Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon WeedMD’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.

The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this news release include, but are not limited to, statements with respect to internal expectations, expectations with respect to actual production volumes, expectations for future growing capacity and the completion of any capital project or expansions. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of WeedMD to implement its business strategies; competition; crop failure; and other risks.

Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, WeedMD does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for WeedMD to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in WeedMD’s Annual Information Form dated December 13, 2017 (the “AIF”) and other disclosure documents of WeedMD filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the AIF and other disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.

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