Nabis Holdings Reports Fourth Quarter 2019 Financial Results
December 30 2019 - 6:10PM
Nabis Holdings Inc. (CSE:NAB) (OTC: NABIF) (FRA:
A2PL) (“NabisTM” or the “Company”), a leading Canadian investment
company with specialty investments in assets across multiple
divisions of the cannabis sector, reported its financial results
for the three and twelve-month periods ended October 31, 2019. All
financial information is provided in Canadian dollars unless
otherwise indicated.
“We continue to make progress on our strategic plan by
diligently working on building out our investments in both Arizona
and Michigan. Although we are only reporting 21 days of
operations from our dispensary in AZ this quarter, we are beginning
to see improvements in operational efficiencies and profitability
now that the dispensary is under Nabis management," said Shay
Shnet, CEO and Director of Nabis. “In parallel with our buildout of
our Camp Verde hub, we are also moving full-steam ahead with our
dispensary build-outs in Michigan and plan on capitalizing on the
newly legalized recreational market by the first half of 2020”.
Fourth Quarter 2019 Highlights and Subsequent
Events
Expanded U.S. Footprint:
Arizona
- In September, the Company acquired a 44,000 sq. ft.
cultivation, fulfillment and production facility located in Camp
Verde, Arizona near Phoenix. This facility will serve as the hub of
Nabis’ operations;
- In October, the Company acquired exclusive rights to operate
the Emerald dispensary in Phoenix, Arizona. Transfer of ownership
occurred on October 10, 2019 and the company reported gross revenue
of $644K for the first 21 days of operations;
Michigan
- Subsequent to the end of the quarter,
the Company announced that it had completed its investment in an
additional two properties that have municipal approvals for two
provisioning centres strategically located in Emmet Township and
Kawkawlin, Michigan. This brings the Company’s cannabis investment
portfolio in Michigan to a total of 7 properties and a parcel of
land and well positions the Company to participate in the expanded
cannabis market in the state of Michigan now that recreational
adult use of cannabis is legal as of December 1,
2019; Experienced
Leadership Team:
- Appointed Nicole Rusaw as Chief Financial Officer, effective
October 1, 2019;
- Appointed Richard Dolan as VP, Investor Relations, effective
October 2, 2019;
- Expanded employee head count to fill key internal positions
including Director of Strategic Marketing and Director of Customer
Insights and Loyalty;
- Announced industry veteran, Emmanuel Paul as an Independent
Director in August 2019;
Capital Markets:
- In November, Nabis commenced trading on the OTCQB® Venture
Market in the U.S. under the symbol “NABIF”. Up-grading to the
OTCQB® provides the Company’s current and future shareholder base
with increased visibility and transparency through high quality
disclosure, transparent trading and ease of access to Company
information.
Financial Results for the Fourth Quarter Ended October
31, 2019
Retail and wholesale revenues for the three-month period ended
October 31, 2019 was $644K. Cost of goods sold and the
corresponding gross profit from the dispensary operations from
October 11 to October 31, 2019 were $444K and $201K or 31%
respectively.
Management expects to see increased revenues and higher profit
margins in subsequent quarters now that the dispensary is under
Nabis management. The Company has also undergone a recent
cost containment exercise which resulted in an expected annualized
savings of $1.04M, largely due to the termination or non-renewal of
non-essential contracts. As a result of this exercise, the
Company expects to report significant cost reductions in
their SG&A expenses in fiscal 2020.
Net loss for the three-month period ended October 31, 2019 was
$4.3M or ($0.04) loss per share compared to a net loss of $4.0
million or ($0.16) loss per share in the same quarter of fiscal
2018.
Balance Sheet and Liquidity
As of October 31, 2019, the Company had total assets of $45.3
million, including cash and cash equivalents of $4.8 million.
As of December 30, 2019, there were 116,129,435 common shares
outstanding.
About Nabis Holdings Inc.Nabis Holdings is a
Canadian investment issuer that invests in high quality cash
flowing assets across multiple industries, including real property,
securities, cryptocurrency, and all aspects of the U.S. and
international cannabis sector. The Company is focused on investing
across the entire vertically integrated aspects of the space with a
focus on revenue generation, EBITDA and growth. For more
information, please visit https://www.nabisholdings.com/.
Forward-Looking StatementsAll statements, other
than statements of historical fact, included herein are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements. The
risks are without limitations: that the acquisitions will be
completed by the Company or completed upon the terms disclosed; the
price for cannabis and related products will remain consistent and
the consumer demand remains strong; availability of financing to
the Company to develop the retail locations; retention of key
employees and management; changes in State and/or municipal
regulations of retail operations and changes in government
regulations generally. Important factors that could cause actual
results to differ, materially from the Company’s expectations are
disclosed in the Company’s documents filed from time to time with
the Canadian Securities Exchange, the British Columbia Securities
Commission, the Ontario Securities Commission and the Alberta
Securities Commission.
The CSE does not accept responsibility for the adequacy
or accuracy of this release.
For inquiries, please contact:
Shay Shnet, CEO and Director
PH: 416-223-2248
info@nabisholdings.com
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