VANCOUVER, BC / ACCESSWIRE / July 29, 2020 / Experion Holdings Ltd. (the 'Company' or 'Experion') (TSXV:EXP)(OTCQB:EXPFF)(FRANKFURT:MB31) a cultivator and processor of cannabis products is pleased to announce its financial results for its second quarter, for the period ended May 31, 2020.
Jarrett Malnarich, CEO of Experion, was quoted 'Gross Revenue of $1.7 million in Q2 2020, an increase of 114% over last quarter, and YTD a 61% increase over the full year 2019, sets a new record for our Company. Our strong revenue confirms our ability to cultivate flower at industry-leading levels and the ability to distribute it across Canada. If the events of 2020 to-date have demonstrated anything, they show that the depth and overall competencies of the Experion team are amongst the best in the industry. Our ability to optimize our operations to continue to support our leading brand Citizen Stash without interruption shows just how flexible and efficient we are as a Company. With our ability to scale products and introduce cannabis derivatives, we could not be more excited about the opportunities that lie ahead.'
Key Financial Highlights of the Second Quarter of 2020
Revenue increased 114% in the second quarter compared to the first quarter of 2020; YTD revenue of $2.5 million exceeds fiscal 2019 (full year) sales by 61%.
Processed and sold 290,058 grams of dried flower YTD through its retail distribution network; an increase of 250% over the same period in the prior year.
Achieved an industry high average selling price of $8.59 per gram; an increase of $0.73 compared to the first quarter of 2020.
Gross profit improved 21% in the second quarter of 2020 compared to 4% in the previous quarter due to a higher average selling price per gram and increased economies of scale.
Successfully reduced operating expenses by $0.9 million (32%) compared to the same period in the prior year.
Adjusted EBITDA of $(83,509) represents an increase of $0.7 million compared to the prior quarter.
Well positioned balance sheet with current assets of $5.7 million and net working capital of $4.5 million with no debt.
Key Operating Highlights of the Second Quarter of 2020
Experion's consumer brand, Citizen Stash, continues to gain traction in the marketplace which over 600 provincial and private licensed retailers have access to throughout five provinces and two territories across Canada; with the most recent being Ontario.
Commercialized 6 new unique cannabis strains to date with another 4 being launched in the next 60 days to complement our existing portfolio.
Health Canada approved the license amendment for derivatives in the second quarter of 2020 authorizing Experion to develop, manufacture, sell and distribute cannabis extracts, topicals and edibles to provincial distributors and the adult-use cannabis market across Canada.
Experion plans to launch a series of in demand concentrates and edible products under its premium Citizen Stash brand in the next 90 days.
Established one of the fastest selling retail brands in Canada, Citizen Stash, offering premium cannabis products.
The management's discussion and analysis and the accompanying financial statements and notes for the period ended May 31, 2020, are available under the Company's profile on SEDAR at www.sedar.com.
About Experion Holdings Ltd.
Experion Holdings Ltd. is the parent Company of Experion Biotechnologies Inc., a Health Canada licensed cultivator and processor of cannabis, based in Mission, BC.
Experion Holdings Ltd. is invested in a portfolio of products to address a wide spectrum of consumer needs‘' including Adult-use, Wellness and Therapeutic, and Medical products.
Experion trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol 'EXP' on the OTCQB Venture under the symbol 'EXPFF' and on the Frankfurt Stock Exchange under the symbol 'MB31'.
This press release contains forward-looking information within the meaning of Canadian securities laws. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct.
Forward looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, forecast, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to: the state of the financial markets for the Company's equity securities; recent market volatility; the Company's ability to raise the necessary capital or to be fully able to implement its business strategies; the risks identified in the Filing Statement, and other risks and factors that the Company is unaware of at this time. The reader is referred to the Filing Statement dated September 25, 2017 and/or the most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company page on SEDAR at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Experion Holdings Ltd.
View source version on accesswire.com: