- Gross Profit up approximately 400 per cent compared to same quarter in 2019
- Revenues up more than 30 per cent compared to same quarter in 2019
TORONTO, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Captor Capital Corp. (CSE: CPTR; FRANKFURT: NMV; STUTTGART: NMVA; USOTC: CPTRF), ("Captor" or the "Company"), is pleased to announce today the release of its Unaudited Quarterly Financial Statements and MD&A for the Quarter Ended June 30, 2020. During the quarter, revenues at the Company’s two Chai Cannabis Co. dispensaries were approximately $3.67 million, with the Company recording a gross profit of $1,251,336 from the sale of cannabis. Revenues on cannabis sales were up approximately 35 per cent over the same quarter the year previous. Net Income was approximately $2.69 million ($0.07 per share) compared to a net loss of $7,189,142 ($0.18 per share) for the three months ended June 30, 2019.
Financial Statement Highlights
- During the three months ended June 30, 2020, the Company recorded revenues of $3,767,851 from the sale of cannabis at its retail dispensaries compared to $2,868,679 in the 2019 comparative period.
- During the three months ended June 30, 2020, the Company recorded a gross profit of $1,251,336 from the sale of cannabis at its retail dispensaries compared to $341,131 in the 2019 comparative period.
- For the three months ended June 30, 2020, the Company’s net income was $2,690,628 ($0.07 per share), compared to net loss of $7,189,142 ($0.18 per share) for the three months ended June 30, 2019.
- Net income of $2,690,628 consisted primarily of unrealized gain on investments at fair value $3,442,725 and gross profit of $1,251,336 offset by general and administrative expenses of $1,776,059
- As at June 30, 2020, the Company had a consolidated cash balance of $18,493,586 compared to $19,766,334 at March 31, 2020.
- The Company had a working capital of $23,537,956 as at June 30, 2020, compared to a working capital of $20,652,754 at March 31, 2020.
Management Commentary.
Taking into account the changing retail landscape due to COVID-19, Captor maintains a cautionary approach to its growth strategy and a keen focus on maximizing revenues from its current investments. Captor’s retail footprint will support top line revenue expansion while strict standard operating procedures, centralized business activities, and a comprehensive enterprise mentality will correlate to income statement improvements, as witnessed in the quarter ending June 30, 2020 by the significant increase not only in revenues, but more importantly in gross profit, as the Company continues to reduce overall cost of goods and increase profit margins. Developing retail locations in mature, high-density markets, economies of scale will continue to drive down costs and create value as product purchasing power increases through Captor Retail Group.
Corporate Update
In conjunction with the release of the unaudited financial statements for the three months ended June 30, 2020 the Company provided a corporate update on Captor Retail Group (“CRG”).
Captor and Three Habitat have implemented consistent operational, procedural, accounting, and human resources procedures for the five dispensaries – two Chai-branded locations and three One Plant locations – that are currently being operated by Captor Retail Group under a management agreement between the parties. The legal team put together by Captor Capital and One Plant is in the process of transferring all licenses to CRG. Simultaneously, CRG is proceeding with the construction process on the One Plant Antioch location, which is scheduled to be the sixth CRG dispensary in operation, with an estimated construction completion date of October 2020.
On November 20, 2018, the Company announced it had signed a Letter of Intent (“LOI”) to acquire an entity that has submitted an application pending approval for a cannabis dispensary in Santa Barbara County, California (the “Seller”). Under the terms of the transaction, Captor was to acquire 99 per cent of the equity interests in the Seller. The entity was being sold by an affiliate of Three Habitat Consulting, who was due to receive an aggregate of US $1,300,000 (the “Purchase Price”). The entity originally pursued under this LOI is different from the Goleta location referenced in the media release of August 10, 2020 announcing the formation of CRG. Captor is currently considering strategic options regarding the LOI for the Goleta Dispensary referenced in the November 20, 2018 media release.
ADDITIONAL INFORMATION
Additional information relating to the Company’s annual filing is available on SEDAR at www.sedar.com and in the Company’s Annual Financial Statements and in the Management’s Discussion and Analysis for the Quarter Ended June 30, 2020.
About Captor Capital Corp.
Captor Capital Corp. is a Canadian vertically integrated cannabis company listed on the Canadian Securities Exchange, the OTC, and the Frankfurt and Stuttgart stock exchanges. Captor provides recreational marijuana products to consumers, as well as other high demand cannabis-based goods. The Company follows a strategy of acquiring cash flowing established companies and organizations with growth potential that require capital to scale. Captor currently has a number of revenue generating cannabis assets including the CHAI Cannabis Co. dispensaries in Santa Cruz and Monterey, CA. The Company also owns Mellow Extracts, with a launch date to be determined.
Gavin Davidson,
Communications
Captor Capital Corp.
705.446.6630
gavin@captorcapital.com
Forward-Looking Statements
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release contains or refers to forward-looking information and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to availability of investment opportunities, economic circumstances, market fluctuations and uncertainties, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, and the other risks involved in the investment industry and junior capital markets. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.