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.
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
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.
"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 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.
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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