Discover Wellness Files Q2 2021 Financial Statements, Clarifies the Volume of Hemp Purchased from SynerGenetics and Provides Other Updates
Calgary, Alberta--(Newsfile Corp. - August 31, 2021) - Discover Wellness Solutions Inc. (CSE: WLNS) (formerly RMMI Corp.) ("Discover Wellness", "DWS" or the "Company") , a licensed producer and processor under the Cannabis Act (Canada), has filed its Q2 2021 financial statements on SEDAR.
The Company wishes to clarify the volume of hemp it has purchased from SynerGenetics Bioscience Inc. ("SG"). In December 2020, Discover Wellness took possession of 550,000 lbs of high-CBD hemp from SG. The SG hemp purchase agreement has been completed as it relates to the volume of hemp to be purchased from SG and no other hemp is planned or required to be purchased from SG. The condition in the SG hemp purchase agreement that SG sell and DWS purchase a minimum 1,100,000 lbs of high-CDB hemp biomass has been waived as no other SG hemp is available to sell and purchase.
The Company, having fulfilled its purchase obligations with SG, can now partner with farmers directly to cultivate high-CBD industrial hemp using SG seeds. This provides the Company more flexibility on selecting its own farming partners. The Company has not engaged in any hemp farming activities for the 2021 cultivation season. The Company will consider its industrial hemp cultivation needs before the 2022 cultivation season.
Update on Quad Play Memorandum of Understanding
DWS is pleased to provide an update on the Quad Play memorandum of understanding announced on March 2, 2021. At this time, Quad Play has received conditional approval from the Thailand authorities to import industrial hemp seeds. DWS, along with SG, is obtaining certain reports and permits required by the Thailand authorities and Canadian authorities to export industrial hemp seeds to Thailand. The timing of the reports and permits are uncertain as this is the first time that the Company has undertaken these activities and timing relies on availability and attention of third parties, including the Government of Canada, which is hard to predict.
Update on hemp biomass sale
Further to the Company's April 8, 2021 announcing a first sale of hemp biomass to a licenced third party, the sale to that third party has been deferred. The sale was deferred initially due to logistics issues with shipment and then further deferred due to lack of immediate need by the third party. The hemp that was earmarked for this third party has now been shipped to a licenced processor under a revenue sharing arrangement. The processor is expected to process the hemp into CBD products and both the Company and the processor will market the CBD products for sale. The Company and the processor will share the revenue from the sale of CBD products. The timing and amount of revenue to the Company is uncertain at this time as there are many factors that will affect this including when the processor will be able to fit the biomass into their processing schedule, the yield of CBD products, the quality of the CBD products and the market for CBD products at the time of sale.
Discover Wellness Solutions Inc.
Discover Wellness (formerly RMMI Corp.) is a Canadian company licensed, through its subsidiary, to cultivate, produce, process and sell cannabis in various forms. The Company's vision is to enhance shareholder value by establishing cost leadership in hemp processing and CBD extraction coupled with a global distribution strategy.
More information about WLNS is available online at https://discoverwellness.solutions/.
Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Trading in the securities of WLNS should be considered highly speculative.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/95115