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THC Biomed Intl Ltd
Symbol	THC
Shares Issued	163,676,056
Close 2023-06-29	C$ 0.035
Market Cap	C$ 5,728,662
Recent Sedar+ Documents

THC Biomed loses $935,212 in fiscal Q3 2023

2023-06-29 17:18 ET - News Release

Subject: Please disseminate immediately for THC BioMed Intl Ltd. PDF Document File: Attachment THC BioMed Q3 Financial Statement Press Release (03028580x9DEBD).PDF , THC BIOMED INTL LTD. #1 2550 Acland Road Kelowna, B.C. V1X 7L4 www.thcbiomed.com THC BioMed Reports Third Quarter Results THC - CSE THCBF - OTC TFHD .F Vancouver, Canada, June 29, 2023 -- THC BioMed Intl Ltd. (CSE: THC) ("THC BioMed" or the "Company") is pleased to report its financial results for the nine months ended April 30, 2023. Q3 HIGHLIGHTS In March, THC BioMed Ltd. commenced the sales and distribution of its patented American- manufactured Clone Shipper containers in Thailand. Clone Shipper containers are available for purchase from THC BioMed (Thailand) Co. Ltd. via their THC2Go dispensaries. Clone Shipper Ltd. is a profit-making subsidiary of THC BioMed Intl Ltd. The innovative Clone Shipper container's patented design enables plants, especially clones or young plants, to be shipped safely and all the while nurturing the plant in the growing process. The container is built to last for multiple shipments. The latest innovations include a new opaque lid and an LED light that lasts for 100 hours or longer. In April, our affiliate, THC BioMed (Thailand) Co. Ltd., began retail medical sales in the dispensary in Thailand. HIGHLIGHTS SUBSEQUENT TO APRIL 30, 2023 Our largest customer, the Province of B.C., discontinued skews for our gummies and pre-rolls which affected sales for Q3. This caused us to reestablish new skews for these products and sales have resumed. Management has made a decisive strategic restructuring of operations going forward focusing on service expansion. The Company now offers comprehensive assistance to micro-producers seeking entrance into the lucrative cannabis sector. In the wake of the Company's shift to edibles and drinks as its main products, THC BioMed Ltd. has available grow space in its licensed Kelowna, B.C. facility. This space will be leveraged to offer turnkey operations for micro-producers, inclusive of a licensed grow space and consulting services covering all facets of cannabis production, from growth to extraction, distribution and sales. As a result of this restructuring, some units have been earmarked to be sold as commercial units in the Acland Road business park. Micro-producers utilizing THC's services will gain from the Company's existing license, in-house processing, and established distribution networks. THC BioMed Ltd. will also assist these new micro-producers in applying for a B.C. farmgate license, facilitating non-medical cannabis product sales from stores located at cultivation sites. On June 29, 2023, the THC Kiss Mango Beverage Shot was #3 and THC Kiss Guava Beverage Shot was #4 on the bestselling beverages list on the Ontario Cannabis Store website. On June 29, 2023, the THC Kiss Mango Beverage Shot was #2 on the B.C. Cannabis Store website. MANAGEMENT COMMENT "Transitioning to edibles and drinks, coupled with our Clone Shipper sales, we now have space to accommodate a few micro-producers," stated John Miller, CEO of THC BioMed. "This new direction allows us to contribute to the growing trend toward micro-producers in the Canadian cannabis market, aiding newcomers in navigating market entry barriers. As a result of the more streamlined process with edibles and drinks production, some units have been earmarked to be sold as commercial units in the Acland Road business park. Micro-producers utilizing THC's services will gain from the Company's existing license, in-house processing, and established distribution networks. THC BioMed Ltd. will also assist these new micro-producers in applying for a B.C. farmgate license, facilitating non-medical cannabis product sales from stores located at cultivation sites." SUMMARY OF QUARTERLY RESULTS Quarter Ended Revenue Net Income (Loss) Income (Loss) Per Share Q3/2023 April 30, 2023 $ 476,230 $ (935,212) $ (0.005) Q2/2023 January 31, 2023 (0.005) Q1/2023 October 31, 2022 $ 817,096 $ (992,011) $ Q4/2022 - Q3/2022 July 31, 2022 $ 667,876 $ (331,478) $ (0.010) Q2/2022 April 30, 2022 Q1/2022 January 31, 2022 $ 897,371 $ (1,653,118) $ - Q4/2021 October 31, 2021 (0.010) July 31, 2021 $ 699,004 $ (131,108) $ - $ 606,826 $ (1,547,016) $ (0.010) $ 1,136,796 $ 25,006 $ $ 1,020,804 $ (1,426,064) $ STATEMENT OF NET AND COMPREHENSIVE LOSS SUMMARY For the three months ended For the nine months ended April 30 April 30 April 30 April 30 2023 2022 2023 2022 Revenue $ 476,230 $ 699,004 $ 1,961,202 $ 2,442,626 Cost of sales Gross profit (loss) before fair value adjustments (736,054) (831,431) (2,012,850) (2,337,214) Net change in fair value of biological assets Gross profit after fair value adjustments (259,824) (132,427) (51,648) 105,412 Total expenses Total other income (expense) items (110,576) (68,322) (511,432) (536,467) (370,400) (200,749) (563,080) (431,055) (556,399) (550,201) (1,659,089) (1,826,815) (8,413) 619,842 (36,532) 604,752 Net and comprehensive loss for the period $ (935,212) $ (131,108) $ (2,258,701) $ (1,653,118) STATEMENT OF FINANCIAL POSITION SUMMARY April 30 July 31 2023 2022 As at $ 3,314,445 $ 4,291,954 Current assets $ 13,721,302 $ 14,746,366 Total assets $ 8,046,304 $ 6,844,658 Current liabilities $ 9,021,567 $ 7,813,235 Total liabilities $ (4,731,859) $ (2,552,704) Working capital $ (27,019,011) $ (25,337,925) Accumulated deficit CASH FLOW STATEMENT SUMMARY For the three months ended For the nine months ended Net and comprehensive loss for the period April 30 April 30 April 30 April 30 Cash, end of the period 2023 2022 2023 2022 $ (935,212) $ (131,108) $ (2,258,701) $ (1,653,118) $ 205,015 $ 1,155,063 $ 205,015 $ 1,155,063 NON-IFRS EARNINGS MEASURE For the three months ended For the nine months ended April 30 April 30 April 30 April 30 2023 2022 2023 2022 Net and comprehensive loss for the period $ (935,212) $ (131,108) $ (2,258,701) $ (1,653,118) Add back 157,382 91,144 380,056 287,177 Interest 191,921 229,947 617,401 684,782 Depreciation and amortization (585,909) 189,983 (1,261,244) (681,159) EBITDA from continuing operations 13,543 13,765 40,877 30,179 Accretion expense on convertible debentures - - Extinguiishment of accounts payable - (170,237) 365 (170,237) Gain (loss) on sale of assets - (455,381) - (455,381) Share-based compensation Net changes in fair value of biological assets 110,576 - 511,432 94,204 68,322 536,467 Adjusted EBITDA $ (461,790) $ (353,548) $ (708,570) $ (645,927) The Company defines Adjusted EBITDA as net income (loss) excluding fair value changes on growth of biological assets, realized fair value changes on inventory sold or impaired, depreciation and amortization of property, plant and equipment and intangible assets, share based payments, finance expense, gain or loss on disposal of property plant and equipment, unrealized gains or losses on investments and income taxes. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. This news 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, 2023 and 2022, which has been filed on SEDAR (www.sedar.com). ABOUT THC THC BioMed is one of Canada's oldest active licensed cannabis companies. It was first licensed to deal with cannabis in 2013 under a Health Canada Section 56 exemption under the Controlled Drugs and Substances Act and has been a Licensed Producer under the current regime since 2016. It is a small batch producer and aims to be a leader in the beverage and edible space. THC BioMed is a Licensed Producer of medical and recreational cannabis under the Cannabis Act. It is licensed to cultivate and sell dried, extract, edible, and topical cannabis. The Company is on the leading edge of scientific research and the development of products and services related to the cannabis industry. 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. www.thcbiomed.com John Miller President and CEO THC Biomed Intl Ltd. T: 1-844-THCMEDS E: info@thcbiomed.com 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 are made as of the date of this press release and include that THC will be on 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. 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.