Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) (FRA: A2PL)
(“
Nabis” or the “
Company”)
reports its financial results for the three and six-month periods
ended June 30, 2020. All financial information is provided in
Canadian dollars unless otherwise indicated.
Results of Operations
Retail revenue for the three and six-month
periods ended June 30, 2020 was $3,987,777 and $6,294,736
respectively. (2019-$nil). Cost of goods sold for the same periods
was $2,144,880 and $3,475,693 (2019-$nil) and gross profit was
$1,842,897 and $2,819,043 or 46.2% for the three month period and
44.8% for the six month period ended June 30, 2020 (2019-$nil).
Basic and diluted loss per share for the three
and six month periods ended June 30, 2020 was a loss of $0.02 and a
loss of $0.05 per share compared to a loss of $0.04 and $0.09 per
share during the three and six-month periods ended April 30,
2019.
During the three-month period ended June 30,
2020, the Company incurred $1,805,685 in selling, general and
administrative expenses (“SG&A”), a decrease of $1,560,695 or
86% when compared to $3,366,380 in the comparative three-month
period ended April 30, 2019. SG&A expenses during the six-month
period ended June 30, 2020 were $3,679,995, a decrease of
$2,026,698 or 55% when compared to $5,706,693 in the comparative
six-month period ended April 30, 2019.
The decrease in SG&A expenses is due to
significant decreases in consulting and management fees,
professional fees, business development and investor relation fees,
offset by increases in salaries, benefits, rent and occupancy
costs. During the comparative periods, the Company was incurring
due diligence related costs to secure appropriate cannabis assets
whereas the costs incurred during the current periods ended June
30, 2020 are costs incurred operating the dispensary in Phoenix,
Arizona, as well as corporate costs supporting the Company’s other
cannabis assets.
Share-based compensation costs during the three
and six-month periods ended June 30, 2020 were $6,632 and $153,757
respectively, significantly reduced from $150,182 and $1,326,619
reported during the comparative three and six-month periods
decreased. The decrease in share-based compensation expense is due
to the Company issuing fewer options during the quarter, at reduced
Black Scholes valuations.
Total operating expenses decreased by $1,354,318
or 62% and $2,475,920 or 54% during the three and six-month periods
ended June 30, 2020 when compared to the three and six-month
periods ending April 30, 2019. The decrease in total operating
expenses is a result of the Company’s recent cost cutting exercise
which has resulted in cost reductions in SG&A in fiscal 2020.
As a result of this exercise, Management conservatively estimates
an expected annualized savings in 2020 of approximately $3,000,000
largely due to the termination, or non-renewal of non-essential
sales and marketing, business development and investor relations
agreements.
“We are very pleased with the progress our team
has made at our Emerald dispensary, in Phoenix, Arizona,” commented
Mark Krytiuk, COO. “Our results speak for themselves. Since October
we have been able to double top line monthly revenue and our profit
margins have seen double digit increases. We expect to see further
improvements as our Infusion Edibles line is fully relaunched. It
is definitely an exciting time to be in Cannabis in the State of
Arizona.”
About Nabis Holdings Inc.Nabis
Holdings is a Canadian investment issuer that invests in high
quality cash flowing assets across multiple industries, including
real property and all aspects of the U.S. and international
cannabis sector. The Company is focused on investing across the
entire vertically integrated aspects of the space with a focus on
revenue generation, EBITDA and growth. For more information, please
visit https://www.nabisholdings.com/.
Going ConcernThe Company has
incurred losses and has had negative cash flows from operations
from inception that have primarily been funded through financing
activities. The Company will need to raise additional capital
during the next twelve months and beyond to support current
operations and planned development. As at June 30, 2020, the
Company had a working capital deficiency of $14,811,051 and an
accumulated deficit of $38,859,180. Of the total mortgages
outstanding on June 30, 2020, $4,609,011 was due on August 31,
2020. The Company will not make the August 31, 2020 principal
payment and are in discussions with the mortgage holder to either
extend the payment due date, failing which, default proceedings are
expected to commence. On June 30, 2020, the Company did not make
the quarterly interest payment accrued on the convertible
debentures as a result of a Force Majeure event as set out in the
convertible debenture trust indenture. These factors indicate the
existence of a material uncertainty that may cast significant doubt
as to the Company’s ability to continue as a going concern.
Management intends to finance operating costs over the next twelve
months with cash on hand, through the private placement of common
shares, issuance of loans and convertible loans.
Forward-Looking StatementsAll
statements, other than statements of historical fact, included
herein are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
The risks are without limitations: that the acquisitions will be
completed by the Company or completed upon the terms disclosed; the
price for cannabis and related products will remain consistent and
the consumer demand remains strong; availability of financing to
the Company to develop the retail locations; retention of key
employees and management; changes in State and/or municipal
regulations of retail operations and changes in government
regulations generally. Important factors that could cause actual
results to differ, materially from the Company’s expectations are
disclosed in the Company’s documents filed from time to time with
the Canadian Securities Exchange, the British Columbia Securities
Commission, the Ontario Securities Commission and the Alberta
Securities Commission.
The Canadian Securities Exchange has neither
reviewed nor approved the contents of this news release and accepts
no responsibility for the adequacy or accuracy of this release.
For inquiries, please contact:
Mark Krytiuk, COO
PH: 416-223-2248
info@nabisholdings.com
Nabis (CSE:NAB)
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から 11 2024 まで 12 2024
Nabis (CSE:NAB)
過去 株価チャート
から 12 2023 まで 12 2024