Vancouver, British Columbia--(Newsfile Corp. - November 29, 2019) - Benchmark Botanics, Inc. (CSE: BBT) ("Benchmark" or the "Company") a cannabis producer, today released its financial and operational results for the third quarter ended September 30, 2019.
2019 Q3 Highlights:
- $11,300,000 Private Placement Financing
- Canada Sales License Received from Health Canada
- Cannabis Supply Agreement with British Columbia Province
- Extraction Facility Under Construction
"Benchmark continued to progress through Q3 2019. The cannabis supply agreement with British Columbia represents another milestone for the Benchmark Botanic brand. The Company is pleased to be making steps forward to higher margin products with the construction of the Benchmark extraction facility," said William Ying, Benchmark Botanics President and CEO.
Developments occurring during the three months ended September 30, 2019:
- Cannabis Sales License Received from Health Canada
The Company, through its 100% owned subsidiary, Potanicals Green Growers, Inc. ("Potanicals") has received a sales license from Health Canada, effective July 26, 2019.
The license allows Benchmark to supply and sell finished cannabis products to provincial governments throughout Canada and through Canada's approved distribution and retail supply chain. Benchmark will be providing recreational and medical dried cannabis, capsules and other forms of cannabis products, as the Government of Canada makes more forms of the product legal for sale and consumption later this year.
- Cannabis Supply Agreement with British Columbia
In September, the Company, through its wholly owned subsidiary, Potanicals Green Growers Inc. ("Potanicals"), has signed a Licensed Producer Supply Agreement for Non-Medical Cannabis with the Province of British Columbia. Benchmark has signed an agreement with the BC Liquor Distribution Branch (BCLDB), the sole, wholesale distributor of non-medical cannabis for British Columbia (BC) that will operate standalone, public retail stores and provide online sales.
- Extraction Facility under Construction
On July 10, 2019, the Company entered into an agreement with a construction company which provides the goods and services for construction of an 10,000 sq. ft. extraction indoor facility, which is located in the Company Peachland Cannabis Complex.
Financial Results - Highlights for the three months ended September 30, 2019
Net loss for the three months ended September 30, 2019 was $1,176,229, compared to a net loss of $1,496,008 for the three months ended September 30, 2018. The decrease in net loss for the three months ended September 30, 2019 was mainly due to the decrease in expenses of $232,986.
EBITDA before share-based compensation expenses, fair value changes in biological assets included in inventory sold and other inventory charges and unrealized gain on changes in fair value of biological assets ("Adjusted EBITDA") for the three months ended September 30, 2019 decreased to a negative $997,682 from a negative $868,510 for the same time period of last year.
At September 30, 2019, the Company had working capital of $7,847,980 (December 31, 2018 - $793,516).
About Benchmark Botanics Inc.
Benchmark is a diversified multi-licensed cannabis producer focused on a three-way vertical business model targeting the medical, pharmaceutical, and recreational markets in Canada. The Company's business plan also includes a strategy to become a Canadian licensed producer to pioneer selling medical cannabis and hemp throughout Asia, where it is legal to do so.
Benchmark is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the Company's global footprint.
Benchmark's 100% owned subsidiary, Potanicals Green Growers Inc. is a Health Canada licensed producer under the Cannabis Act and its regulations (formerly ACMPR). The Company is producing at its indoor Peachland Cannabis Complex and is constructing a Phase II expansion of an additional 10,000 square foot extraction facility there. Along with cultivation and production, the company's Peachland BC facility also provides propagation, cultivation, cloning, storage, research and development, genetics and is progressing towards CBD oil extraction and an EU-GMP certification.
As part of its expansion strategy the company is working with a partner to complete a second facility, a 4-acre Greenhouse Operation in Pitt Meadows, BC.
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ON BEHALF OF THE BOARD OF
BENCHMARK BOTANICS INC.
/s/ "William Ying"
Chief Executive Officer