INDVR Brands Inc. Announces Corporate Update Including Record Revenue Numbers from Definitive Target Cannabis Corp.
Vancouver, British Columbia and Denver, Colorado--(Newsfile Corp. - December 3, 2020) - INDVR Brands Inc. (CSE: IDVR) ("INDVR", "INDVR Brands" or the "Company") is pleased to announce a corporate update including record number from its definitive target Cannabis Corp.
- Cannabis Corp, INDVR's definitive target in Colorado has seen Q3 2020 retail revenue increase 25% year over year to $1.53mm and cultivation revenue increase 42% in Q3 2020 to $672,485.
- The Company continues to strengthen the management team with the previously announced EVP, Business Development position and the appointment of a CFO. The Board of Directors has also been strengthened and currently consists of 3 members.
- The first Tranche of a private placement closed on November 17, 2020 and has helped to strengthen the balance sheet by removing accounts payable and providing working capital. The Company still operates with no secured debt and has over $5MM in assets deployed.
- Honu Brand Q3 topline sales increased 29% to $987,401 million over the same period in 2019.
Definitive Target Cannabis Corp.
In June 2020, INDVR entered into a definitive agreement to merge with Cannabis Corp., its licensed partner in the state of Colorado. The Company is currently in the process of obtaining its suitability approval by the Marijuana Enforcement Division to acquire the licenses. The company expects to be able to obtain this approval and effect the closing of Cannabis Corp in Q1 2021.
At the Joint, the dispensary brand owned by INDVR and operated by its licensed partner, sales have steadily increased over the last 12 months. For the calendar quarter ending September 2020 the Joint Retail generated $1.53mm of Revenue (compared to $1.22mm of Revenue in the same quarter of 2019). Store level gross margin for the calendar quarter ending September 2020 was 54% (Compared to 45% in the same quarter of 2019). As restrictions ease from COVID 19, and with the introduction of delivery, Management expects revenues and gross margin to continue to grow.
Cannabis Corp and INDVR through capital investment into its Fox Street Cultivation facility, have also seen cultivation revenue increase to $672,485 in calendar Q3 2020 (compared to $473,360) , a 42% increase year over year.
Honu Brand Update
Since the acquisition of Honu in mid 2019, the INDVR team has worked to optimize the production and distribution operations to allow for continued growth of the brand.
Currently, Honu is produced and sold in Washington and Oregon. In these two states, INDVR uses licensed partners to produce and distribute the brands on which we collect a fee that effectuates approximately 12% of revenue on licensed products. The Company continues to see increased Honu Brand sales in Washington and Oregon with calendar Q3 2020 topline brand sales of $987,401mm, a 29% increase from Q3 2019.
Currently, the Company derives its revenues from owning and leasing all the equipment, facilities and brands to Cannabis Corp as well as revenues generated from the Honu Brand sales in Washington and Oregon. The completion of the definitive agreement with Cannabis Corp. will provide the Company with the revenues and profits from operating the grow facilities and the retail operations.
With the legalization of cannabis in many states following the election in the USA the Company continues to explore opportunities to increase awareness in and introduction of the Honu Brand into current and new markets as well as new opportunities to find partners to further enhance operations. The Company is also exploring delivery options as this becomes legalized in Colorado and other states. With the restrictions caused by COVID-19 the Company believes this has created an opportunity to reach new customers that are not able or willing to venture to a retail location.
About INDVR Brands
INDVR Brands Inc. (CSE: IDVR) is a Colorado-based, Canadian-listed company focused on the creation and distribution of unique and exciting brands in the legal US cannabis market.
Disclaimer and Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words "anticipate", "could", "intend", "expect", "believe", "will", "projected", "potential", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties' current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following the closing of the Offering, closing of future tranches of the Offering, the use of proceeds of the Offering and the benefit of the Offering to the Company. These statements are only predictions. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.
To the extent any forward-looking information in this press release constitutes "future-oriented financial information" or "financial outlooks" within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated product sales of the Company and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to the risks set out above under the heading "Disclaimer and Forward-Looking Information".
Cannabis is legal in certain States in the United States ("U.S."), however cannabis remains illegal under U.S. federal laws. INDVR Brands, Inc. intends to conduct its U.S. cannabis operations in a manner consistent with the applicable State laws and in compliance with regulatory and licensing requirements applicable in the applicable State. However, the readers should be aware that any change in federal guidance on enforcement actions could adversely affect IDVR Brands, Inc.'s ability to access private and public capital required in order to support continuing operations and its ability to operate in the U.S.
Unlike in Canada which has Federal legislation uniformly governing the cultivation, distribution, sale and possession of cannabis under the Cannabis Act (Federal), readers are cautioned that in the U.S., cannabis is largely regulated at the State level. To the knowledge of INDVR Brands, Inc., there are to date a total of 33 states, plus the District of Columbia, that have legalized cannabis in some form. Notwithstanding the permissive regulatory environment of medical cannabis at the State level, cannabis continues to be categorized as a controlled substance under the Controlled Substances Act in the U.S. and as such, cannabis-related practices or activities, including without limitation, the manufacture, importation, possession, use or distribution of cannabis are illegal under U.S. Federal law. Strict compliance with State laws with respect to cannabis will neither absolve INDVR Brands, Inc. of liability under the U.S. Federal law, nor will it provide a defense to any Federal proceeding, which may be brought against INDVR Brands, Inc.. Any such proceedings brought against INDVR Brands, Inc. may materially adversely affect its operations and financial performance in the U.S. market.
Further Information: For investment inquiries, please contact Scott Koyich, Investor Relations at Scott@briscocapital.com or (403) 619-2200.
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