OTTAWA, Aug. 29, 2017 (GLOBE NEWSWIRE) — ABcann Global Corporation (TSX-V:ABCN) (“ABcann” or the “Company”) is pleased to release the Company’s financial results for the three and six months ended June 30, 2017. Copies of the interim filings, including the Management’s Discussion and Analysis, are available on the Company’s website and under the Company’s SEDAR profile at www.sedar.com.
The first half of 2017 was transformational due to the successful completion of ABcann’s go-public transaction and, subsequent to June 30, the Company completed an additional substantial equity raise. Achieving these milestones positions ABcann to substantially expand its production capacity at both its Vanluven and Kimmett locations, utilizing its approximately $43m in current working capital.
ABcann’s first quarter as a publicly traded issuer was a successful one, leading to the Company having over $40 million in current working capital. With our strong cash position, ABcann expects to significantly increase production capacity in 2018 while pursuing our aggressive construction and expansion timelines at both Vanluven and Kimmett.
Aaron Keay, Chief Executive Officer of ABcann
We expect that the increase in production capacity will enable ABcann to increase the sales of our premium, organically grown, pesticide free cannabis products in the current domestic market and position the Company for global distribution in the emerging markets we have targeted. Further, the ability to serve larger and broader markets as a result of the production increase positions ABcann extremely well for the anticipated adult consumer market in July 2018.
Company highlights from the first half of 2017 included:
- ABcann completed multiple financings including a subscription receipt offering for gross proceeds of $11.8 million and a private placement of convertible debentures for gross proceeds of $15 million.
- Immediate expansion of the Company’s fully operational Vanluven facility was initiated and construction at ABcann’s 150,000 square foot Kimmett facility commenced with the engagement of Bird Construction Inc. as general contractor and NORR Engineering as project engineer.
- ABcann announced a strategic partnership agreement with Cannabis Wheaton Income Corp. (“CBW”) that includes a $30m investment into ABcann ($15m of which has been completed to date). In addition, upon completion of the initial $30m equity placement, CBW has the opportunity to finance a 50,000 square foot expansion facility in a 50/50 joint venture.
- ABcann amended and extended the research contract in place with the University of Guelph. The ongoing research is focused on the controlled environment production of medicinal cannabis and has become a contributing factor to increasing yields and a higher quality, pesticide free standardized product.
- ABcann welcomed two new additional advisors in Prof. Raphael Mechoulam and W. Brett Wilson. The Company also appointed Dr. Michael Shannon as its chief medical consultant.
Subsequent to June 30, 2017:
- ABcann was included in the Horizons Medical Marijuana Life Sciences ETF. The ETF offers investors direct exposure to a basket of North American publicly listed companies that meet minimum asset and liquidity thresholds.
- Additional listings on both the OTCQB Marketplace (ABCCF) and FSE, the Frankfurt Stock Exchange (23Q) were obtained.
- The Company completed a private placement financing of common shares to CBW at a price of $2.25 per share for proceeds of $15m.
- The Company received approximately $7.5m in additional proceeds from the exercises of nearly 12m warrants issued in connection with 2014 and 2015 private placements. These warrants were to expire on September 9, 2017.
About ABcann Global Corporation (TSX.V:ABCN) :
ABcann was one of the first companies to obtain a production license under the Marijuana for Medical Purposes Regulations, which it received on March 21, 2014. It obtained a sales license on December 31, 2015. ABcann’s flagship facility in Napanee, Ontario utilizes proprietary plant-growing technology, including environmentally-controlled chambers capable of monitoring and regulating all variables in the growing process. This approach and the systems in place allow ABcann to produce organically grown and pesticide-free, high-yielding plants, which, in turn, can generate high-quality products that are consistent from batch to batch. ABcann is able to control environmental and nutrient demands, tailor-made for a particular strain of cannabis, without the variation that is typical when producing large quantities in less-controlled, larger rooms and greenhouse-type structures. ABcann’s modular approach to systems technology eliminates scale-up risk and allows ABcann to locate anywhere in the world and maintain consistency and quality of product.
ABcann is expanding capacity in its current facility to approximately 30,000 sq ft and concurrently undertaking its expansion into a new 150,000 sq ft facility in Napanee. ABcann is pursuing opportunities in Germany, Australia and other jurisdictions as well as exploring the development of multiple delivery vehicles.
Original press release: https://globenewswire.com/news-release/2017/08/29/1101998/0/en/ABcann-Global-files-Q2-2017-Financial-Results-and-Provides-Operational-Update.html
