Vancouver, British Columbia, June 28, 2019 (GLOBE NEWSWIRE) --
Vancouver, BC, June 28, 2019 - INVICTUS MD STRATEGIES CORP. ("Invictus" or the "Company") (TSXV: GENE; OTCQX: IVITF; FRA: 8IS2) today reported financial results for the first quarter ended April 30, 2019.
“We are pleased with the progress on reducing the cost of Invictus’ operations and the increases to date on the income generation capacity of the Company. Continued focus on increasing capacity and cost reduction is paramount in developing a profitable business,” stated Mr. Trevor Dixon, Chief Executive Officer of Invictus.
Summary Financial Results
Revenue was $1.6 million in the first quarter, an increase of 35% from the prior quarter ($1.2 million) and an increase of 23% from the prior year quarter ($1.3 million). Increase in revenue from the prior quarter was primarily due to the Company commencing sales to Ontario in March 2019.
- Gross margin was $1.2 million (77%) in the first quarter, as compared to $0.6 million (44%) in the prior year quarter. Increase in gross margin was primarily due to fair value adjustments related to our biological assets.
- Sales and marketing (S&M) expense was $1.3 million in the first quarter, a decrease of 74% from the prior quarter ($4.9 million) and an increase of 31% from the prior year quarter ($1.0 million). Decrease in S&M expense from the prior quarter is due to cost reduction initiatives implemented during the period.
- General and administrative (G&A) expense was $2.7 million in the first quarter, consistent with the prior quarter ($2.7 million) and an increase of 51% from the prior year quarter ($1.8 million). Increase in G&A expense from the prior year quarter is primarily due to the ramp-up of operations as a result of the build-out of our cannabis cultivation facilities.
- Net loss was $4.6 million in the first quarter, a decrease of 68% from the prior quarter ($14.3 million) and an increase of 53% from the prior year quarter ($3.0 million).
The Company’s unaudited condensed interim consolidated financial statements and management’s discussion and analysis of the results of operations and financial condition of Invictus for the three months ended April 30, 2019, are available under the Company’s profile on SEDAR at www.SEDAR.com.
On Behalf of the Board
Chief Executive Officer
Investor Relations 1-844-800-6086
Invictus is a global cannabis company with a focus on the Canadian cannabis space, offering a selection of products under a wide range of cannabinoid profiles that fit the demand of the Company’s medical clients and retail customers. The Company’s integrated sales approach is defined by five pillars of distribution including medical, adult-use, international, Licensed Producer to Licensed Producer and sales to provinces.
To meet growing demand, Invictus is expanding its cultivation footprint with three cannabis production facilities licensed under the Cannabis Act, which replaced the Access to Cannabis for Medical Purposes Regulations in Canada. Invictus’ wholly-owned subsidiary, Acreage Pharms Ltd.’s (“Acreage”) Phase I and Phase II facilities are in full production and Acreage is completing its Phase III cultivation facility. AB Laboratories Inc., a company which is a 50% owned subsidiary of Invictus continues its cultivation facility expansion. Invictus’ wholly owned subsidiary 0989561 B.C. Ltd. (dba Canandia Bioceuticals) Delta facility is a licensed producer and has received its sales license issued by Health Canada under the Cannabis Act. Another of Invictus’ wholly owned subsidiaries, 2015059 Alberta Ltd. (dba Leaf Wise), continues to connect medical clients to physicians for medical cannabis and to Invictus’ fully licensed cannabis producers under the Cannabis Act. Future Harvest Development Ltd., a company which is a 82.5% owned subsidiary of Invictus continues to produce high-quality fertilizer and nutrients which are supplied to licensed cannabis producers. Invictus is targeting up to 50 percent of production to medical cannabis. Invictus drives sustainable long-term shareholder value by continuing to develop Invictus’ Canadian production of medical and recreational cannabis products. For more information visit www.invictus-md.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Invictus MD Strategies Corp.