Benchmark Botanics Reports Q3 2020 Results
Vancouver, British Columbia--(Newsfile Corp. - November 30, 2020) - Benchmark Botanics, Inc. (CSE: BBT) ("Benchmark" or the "Company"), a diversified multi-licensed cannabis producer, today released its financial and operational results for the three and nine months ended September 30, 2020.
2020 Q3 Highlights:
- Achieved sales revenue for the three months ended September 30, 2020 of $375,701, versus Nil sales compared with the same period from last year.
- Net loss for the third quarter was significantly reduced to ($65,149) from ($1,176,229) in the same quarter of last year.
- General and administrative expenses for the quarter were reduced by 40% from the same quarter last year.
- Acquired an additional 26% interest in 1139000 B.C. to further strengthen the Company's cultivation capability.
- Reorganized the Company's cultivation operations of its wholly-owned operating subsidiary Potanical Green Growers Inc. ("Potanicals") and significantly reduced operating expenses.
RESULTS OF OPERATIONS
The following table sets forth the consolidated statement of operations, which is expressed in Canadian dollars, except share and per share amounts, for the indicated periods.
|Three-Month Period Ended |
|Nine-Month Period Ended |
|Gross profit before fair value impacts in cost of sales||$||161,869||$||284,182||$||85,363|
|Loss from operations||$||(1,448,559||)||$||(1,226,953||)||$||(3,167,348||)||$||(3,961,446||)|
|Loss per share|
|Weighted average number of shares|
|Basic and Diluted||179,667,000||154,993,506||178,445,711||171,337,047|
Total revenue for the nine months ended September 30, 2020 was $654,216 (2019 - $134,844) from sales of dried cannabis to licensed producers and retail sales for the adult-use market in Canada. The total quantity of cannabis sold during the nine months ended September 30, 2020 was 121,941 grams (September 30, 2019 - 24,517) at an average sale price of $5.36 per gram (September 30, 2019 - $5.50).
"During the third quarter, we have achieved sales growth of dried cannabis compared to the same period last year. We continued our efforts to reduce operating costs to address the Company's working capital deficiency. We also increased our ownership interest in 1139000 B.C Ltd. to a 51% control position, which operates a four-acre greenhouse in Pitt Meadows, BC. This acquisition will better position us for sustainable growth in the future," said William Ying, Benchmark Botanics' CEO.
About Benchmark Botanics Inc.
Benchmark is a diversified multi-licensed cannabis producer focused on a 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 related products throughout Asia and in countries where it is legal to do so.
Benchmark is focused on producing high quality 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 (PGG) is a Health Canada licensed producer under the Cannabis Act. PGG's Peachland complex was constructed for propagation, cultivation, cloning, storage, research and development including genetic improvements, and is progressing towards CBD oil extraction.
The Company and a joint venture partner acquired a second facility, a 4-acre Greenhouse Operation in Pitt Meadows, BC. The Company, through Potanicals, received its second cultivation license, effective November 29, 2019, from Health Canada for that Pitt Meadows greenhouse.
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ON BEHALF OF THE BOARD OF
BENCHMARK BOTANICS INC.
/s/ "William Ying"
Chief Executive Officer
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this release.
FORWARD LOOKING INFORMATION
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. More particularly and without limitation, the news release contains forward-looking statements and information relating to Company's corporate strategy. The forward-looking statements and information are based on certain key expectations and assumptions made by management of the Company, including, without limitation, the Company's ability to carry out its business plan. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information since no assurance can be given that they will prove to be correct.
Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve risks and uncertainties. Actual results could differ materially from those currently anticipated due to several factors and risks. These include, but are not limited to, the Company's ability to identify and complete additional suitable acquisitions to further the Company's growth as well as risks associated with the medical marijuana industry in general, such as operational risks in development and production delays or changes in plans with respect to development projects or capital expenditures; the uncertainty of the capital markets; the uncertainty of receiving the required licenses, production, costs and expenses; health, safety and environmental risks; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of the potential market; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and regulated regulations. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
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