Mr. Dale McClanaghan reports

LOTUS VENTURES REPORTS PROFITABLE FIRST HALF FINANCIAL RESULTS

Lotus Ventures Inc. had over $1-million in sales during the period ending Feb. 29, 2020.

First half financial results

Income statement

• Revenue increased to $1,071,252 (from nil in the same period the previous year);
• Cost to produce per gram: $1.16;
• Gross margin (before fair value changes): $741,904;
• Six-month net income: $503,666 (see comments below).

First half operating results

• Harvests are averaging 60,000 to 70,000 grams of cannabis every two weeks;
• Average tetrahydrocannabinol per cent remains above 20 per cent with recent batches testing up to 26 per cent;
• Established wholesale relationships with three licensed producers.

The ramp-up of the company's selling cycle is progressing well and receivable payments for its product and the pace of sales are solid. Sales to date in Q3 are strong and will be detailed in the subsequent quarterly financial statements. "The company incurred net income of $503,666 for the six months ending Feb. 29, 2020, as we have ramped up to full production, sales and accounts receivable. The fair value accounting treatment required under the complex IFRS protocol doesn't put a spotlight on our core result: Lotus is reliably producing high yields of a premium product at a low cost of goods sold of $1.16 per gram," said Dale McClanaghan, president and chief executive officer of Lotus.

About Lotus Ventures Inc.

Lotus Ventures is the publicly traded licensed producer that owns Lotus Cannabis Co, a premium cannabis brand in Canada. The company is a craft grower at scale focused on cultivating cannabis that resonates with consumers.

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