THC BioMed Releases Second Quarter Profitable Results


VANCOUVER, April 8, 2020 /PRNewswire/ - THC BioMed Intl Ltd. (CSE:THC) ("THC BioMed" or the "Company") is pleased to report its financial results for the six months ended January 31, 2020.


                                                      Net        Income

                      Quarter Ended Revenue      Income (Loss) Per Share

        Q2/2020    January 31, 2020         $
           1,246,625                $

        Q1/2020    October 31, 2019         $
           1,044,510               $
          688,925          $

        July 31, 2019           $
           382,096           $
          (4,177,572)       $

        April 30, 2019           $
           354,326           $
          (4,905,797)       $

        Q2/2019    January 31, 2019           $
           474,041           $
          (4,722,819)       $

        Q1/2019    October 31, 2018           $
           279,140             $
          1,106,841          $

        July 31, 2018           $
           163,883           $
          (3,208,291)       $

        April 30, 2018           $
           179,771              $


For the quarter ended January 31, 2020, we produced 470.50 kilograms of dried marijuana and sold 265.07 kilograms at an average price of $4.70 per gram.


    --  Achieved revenues of over $1,000,000((1)) in each of the first two
        quarters of the fiscal year with an average selling price of $4.20 per
        gram to medical patients and recreational buyers such as the Ontario
        Cannabis Store and BCcannabisonline; much less than the average price
        reported for other Licensed Producers overall
    --  Revenue for the quarter increased 163% compared to the same quarter last
    --  Achieved a gross profit before fair value adjustments of $759,959
    --  Achieved Adjusted EBITDA of $131,549
    --  Had our license amended to include the production and sale of cannabis
        edibles, topicals, and extracts
    --  Acquired an additional strata lot at the production facility to continue
        to increase grow capacity
    --  Issued two convertible debentures for a total of $904,536
    --  Announced a normal course issuer bid to purchase up to an aggregate of
        7,977,152 common shares of the Company representing 5% of the issued and
        outstanding common shares as at that date of which 1,080,000 shares have
        been purchased to date
    --  Announced the completion of a non-brokered private placement for total
        proceeds of $201,348 plus the repayment of bona fide debt of $800,000
    --  Announced an offer to existing shareholders to complete a non-brokered
        private placement for a further 3,333,333 Units at a price of $0.15 per
        Unit for gross proceeds up to $500,000. Each Warrant entitles the holder
        to purchase one Common Share of the Company for a period of 24 months
        from closing at a price of $0.18 per share for the first six months, at
        $0.25 during the following six months, at $0.50 for the six months
        following that, and at $0.80 during the final fifteen months

                            (1) Includes excise


    --  Production began of our Pure Cannabis Sticks--pre-rolls that are
        filtered, paper cylinders filled with our own pure cannabis to be
        manufactured using our automated production machine
    --  Production began of our THC Kiss--a brand new cannabis beverage product
    --  A new three-year lease began for a property adjacent to our production
        facility intended for administration, storage, and other activities not
        related to cannabis production in order to free up space at the
        production facility by constructing four new grow rooms with the space
        once it is renovated and approval received from Health Canada


"We are proud to have achieved our second consecutive profitable quarter. We have surpassed the $1,000,000 revenue mark for each of the first two quarters of this fiscal year. Our financial statements for Q2 2020 reflect the improvements we have realized in all key indicators of economic progress. Over the last year, we have completed and started using new grow rooms to increase our output. Our focus on high quality, indoor-grown cannabis at reasonable prices has made our cannabis a best seller," said THC BioMed President & CEO, John Miller. "These results demonstrate the vision and abilities of our management team and we expect to continue this high level of performance going forward."

All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. This press release is intended to be read in conjunction with the Company's Condensed Interim Consolidated Financial Statements and Management's Discussion & Analysis for the six months ended January 31, 2020, which has been filed on SEDAR (

Statement of Comprehensive Income (Loss) Summary

                                                For the three months ended                     For the six months ended

                                                 (Unaudited)              (Unaudited)  (Unaudited)                      (Unaudited)
                                                  January 31              January 31              January 31            January 31

                                                        2020                      2019                    2020                    2019

                                                                            1,246,625                                        474,041            2,291,135          753,181


        Inventory expensed to
         cost of sales                                                      (791,146)                                     (302,103)         (1,540,176)       (604,606)


        Gross profit before fair
         value adjustments                                                    455,479                                        171,938              750,959          148,575

        Net change in fair value
         of biological assets                                                 504,683                                        230,933            1,869,087        2,742,246


       Gross margin                                                          960,162                                        402,871            2,620,046        2,890,821

       Total expenses                                                        871,971                                      5,125,690            1,842,930        6,506,799


                     Net and comprehensive
                      income (loss) for the
                      period                                                   88,191                                    (4,722,819)             777,116      (3,615,978)



Balance Sheet Summary

                            (Unaudited)  (Audited)

                            January 31    July 31

                As at         2020        2019


       Current assets       $7,337,222  $5,217,996

       Total assets        $21,091,527 $18,058,337

       Current liabilities  $3,602,192  $3,290,724

       Total liabilities    $5,281,394  $4,603,731

       Working capital      $3,735,030  $1,927,272

       Accumulated deficit $27,290,483 $28,400,635


Cash Flow Statement Summary

                                        For the three months ended                For the six  months ended

                               (Unaudited)                   (Unaudited)       (Unaudited)              (Unaudited)

                               January 31                     January 31       January 31                January 31

                                      2020                                2019          2020                       2019

        Net and comprehensive
         income (loss) for the
         period                               $
                88,191                 $
              (4,722,819)   $
      777,116  $

        Cash, end of the
         period                              $
                385,295                     $
              849,668    $
      385,295    $


Non-IFRS Earnings Measure

                                                                                                   For the three months ended                       For the six months ended

                                                                                           (Unaudited)                          (Unaudited)      (Unaudited)                 (Unaudited)

                                                                                                             31                  January 31             January 31            January 31

               2020                   2019                             2020               2019


       Net and comprehensive income (loss) for the period                                                        $
              88,191                               (4,722,819) 

              $                                        777,116        (3,615,978)

       Add back

       Interest                                                                                                                         92,239                                    16,982                  134,016             29,726

       Depreciation and amortization                                                                                                   244,853                                   148,031                  483,519            251,321


                EBITDA(1) from continuing operations

                                                                                                                                        425,283                               (4,557,806)               1,394,651        (3,334,931)

       Foreign exchange income (loss)                                                                                                    1,741                                     (479)                   3,922              2,815

       Realized fair value changes in biological assets included in inventory sold                                                   1,319,362                                    36,605                1,445,040            105,262

       Realized loss on sale of asset                                                                                                                                                                                       1,154

       Share-based compensation                                                                                                        228,854                                 1,078,794                  602,063          2,004,802

       Unrealized gain on changes in fair value of biological assets                                                               (1,824,045)                                (267,538)             (3,314,127)       (2,847,508)


                Adjusted EBITDA(1)                                                  
              $                               $

                                                                                                                                        151,195                               (3,710,424)                               (4,068,406)


               (1) These non-IFRS measures
                are defined in the Company's
                MD&A for the six months
                ended January 31, 2020 ("Q2

About THC

THC BioMed is a Cannabis Act Licensed Producer of medical and recreational cannabis. It is licensed to cultivate and sell dried, extract, edible and topical cannabis. THC BioMed is Canada's largest supplier of legal cannabis genetics. The Company is on the leading edge of scientific research and the development of products and services related to the medical cannabis industry. Management believes THC BioMed is well- positioned to be in the forefront of this rapidly growing industry.

Please visit our website for a more detailed description of our business and services available.

Forward-Looking Information:

This press release may include forward-looking information within the meaning of Canadian securities legislation, concerning the business of THC BioMed Intl Ltd. ("THC"). Forward-looking information is based on certain key expectations and assumptions made by the management of THC. In some cases, you can identify forward-looking statements by the use of words such as "will," "may," "would," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "could" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Forward-looking statements in this press release include that THC will (a) continue this high level of performance going forward, and (b) be in the forefront of this rapidly growing industry. Although THC believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because THC can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. THC disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.

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