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THC Biomed Intl Ltd
Symbol THC
Shares Issued 163,676,056
Close 2022-11-24 C$ 0.02
Recent Sedar Documents

THC Biomed loses $3.06-million in fiscal 2022

2022-11-24 19:21 ET - News Release

Mr. John Miller reports

THC BIOMED RELEASES YEAR END RESULTS

THC Biomed Int'l Ltd. has released its financial results for the three months and year ended July 31, 2022.

Q4 highlights

  • The Company reported a gross profit for the year ended July 31, 2022.
  • The Company completed a Broker and Commercial Sales Agreement with World Wide Brands Limited ("WWB") for sales and distribution in the Province of Saskatchewan. This agreement appoints WWB as its exclusive agent in Saskatchewan. WWB will assist the Company in developing a commercial marketing plan in the province. This agreement replaces the commercial agreement with National Cannabis Distribution which has expired.
  • Sale of edibles made up 37% of total sales in Q4.

HIGHLIGHTS SUBSEQUENT TO JULY 31, 2022

  • In October, 2022, THC Kiss Cinnamon Biscuits were on the bestselling edibles list on the Ontario Cannabis Store website.
  • In October, 2022, THC Kiss Mango Beverage Shots were on the bestselling beverages list on the Ontario Cannabis Store website.
  • In October, 2022, THC Kiss Mango Beverage Shots were No. 10 on the Headset bestselling list of cannabis beverages.
  • On November 23, 2022, the BC Cannabis Store website listed the THC Kiss Shortbread, Cinnamon, and Cocoa Biscuits as the No. 1, No. 2, and No. 4 bestselling edibles respectively.
  • On November 23, 2022, the BC Cannabis Store website listed the THC Kiss Guava Shot and THC Mango Shot as the No. 6 and No. 9 bestselling cannabis beverages respectively.
  • On November 23, 2022, the BC Cannabis Store website listed the Company's Dragon's Lettuce Premium Sativa as the No. 5 bestselling high-THC flower and No. 13 bestselling dried flower.
  • Due to the high demand of the Company's Kiss Beverage Shot, the Company began automating its beverage production line.
  • Has developed a line of CBD products: CBD Kiss Biscuits in cocoa, cinnamon, and shortbread flavours; and CBD Kiss Mango Beverage Shot.

MANAGEMENT COMMENT

"The loss at July 31, 2022 is significant due to factors affecting the fair value changes of the biological assets and inventory. The fair values of the biological assets and inventory were revised downward again reflecting lower selling prices. As the market matures and the business moves to profitability, our assessment of the biological assets and inventory needed to be refined to reflect real-time values," said THC BioMed President and CEO, John Miller. "Going forward, we intend on concentrating on the edibles market and specifically our THC Beverage Shot, THC Kiss Gummies, and THC Kiss Cookies which will improve our gross margin and subsequent bottom line."


SUMMARY OF QUARTERLY RESULTS

                     Quarter Ended                    Revenue             Net               Income (Loss)
                                                                   Income (Loss)              Per Share

Q4/2022                   July 31, 2022            $  897,371 $           (1,412,730) $     (0.01)
Q3/2022                  April 30, 2022                                                       -
Q2/2022              January 31, 2022              $  699,004 $           (131,108) $
Q1/2022              October 31, 2021                                                       (0.01)
Q4/2021                   July 31, 2021            $  606,826 $           (1,547,016) $       -
Q3/2021                  April 30, 2021
Q2/2021              January 31, 2021              $  1,136,796 $              25,006 $     (0.01)
Q1/2021              October 31, 2020                                                       (0.01)
                                                   $  1,020,804 $         (1,426,064) $     (0.02)

                                                   $  1,109,503 $         (1,319,503) $       -

                                                   $  1,021,989 $         (2,921,510) $

                                                   $  622,025 $           (692,177) $

For the quarter ended July 31, 2022, we produced 419.2 kilograms of dried cannabis and sold 198.2 kilograms at an average net selling price of $2.50 per gram reflecting overall lower selling prices in the retail market.

STATEMENT OF NET AND COMPREHENSIVE LOSS SUMMARY

                                                      For the three months ended  For the year ended

                                                      July 31    July 31          July 31   July 31

                                                      2022       2021             2022      2021

Revenue                                               $ 897,371 $ 1,020,804 $ 3,339,997 $ 3,774,321
Cost of sales
Gross profit (loss) before fair value adjustments     (994,033)    (841,558) (3,331,247) (4,024,679)
Net change in fair value of biological assets
Gross loss after fair value adjustments               (96,662)     179,246        8,750     (250,358)
Total expenses
Total other income (expense) items                    (501,930)    (712,031) (1,038,397) (2,923,903)

                                                      (598,592)    (532,785) (1,029,647) (3,174,261)

                                                      (803,325)    (893,279) (2,630,140) (3,160,470)

                                                      (10,813)            -       593,939   (24,523)

Net and comprehensive loss for the period        $ (1,412,730) $ (1,426,064) $ (3,065,848) $ (6,359,254)

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 years ended July 31, 2022 and 2021, which has been filed on SEDAR.

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.

We seek Safe Harbor.

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