(Photo Credit - Nick Youngson)
Ottawa, Canada – April 13, 2017 – CannaRoyalty Corp. (CSE: CRZ) (OTCQB: CNNRF) (“CannaRoyalty” or the “Company”) announced today the Company’s consolidated audited financial results for the nine-month period ended December 31, 2016. All figures are reported in Canadian dollars ($), unless otherwise indicated. CannaRoyalty’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). The statements were prepared for a nine-month period as the Company’s private predecessor entity, Cannabis Royalties & Holdings Corp., had a March 31 year-end, which was changed to a December 31 year-end on acquisition by the Company.
Highlights for the nine-month period:
Continued the expansion of a diversified portfolio of high-value assets with 24 investments completed to date across different market segments in Canada and the U.S.;
Closed equity financings for aggregate gross proceeds of $10.2M;
Grew the total asset base from $3.9M to $32.2M, more than an eight-fold increase in the period;
Completed a reverse-takeover (“RTO”) of Bonanza Blue Corp. and name change to CannaRoyalty; and
Commenced trading on the Canadian Securities Exchange.
Subsequent to the nine-month period:
Acquired a 20% equity interest in Anandia Laboratories;
Completed a binding term sheet on a royalty financing arrangement with Rich Extracts, LLC;
Increased cash positon with the closing of a bought deal prospectus financing for aggregate gross proceeds of $15M to support the continued expansion of its strategic assets portfolio;
Received approval for trading on the OTCQB venture market in the U.S.;
Launched the CR Brands Division;
Concluded a binding term sheet for a royalty and distribution agreement with River Wellness Inc.; and
Obtained eligibility with The Depository Trust Company (“DTC”) for its common shares listed on the OTCQB under the symbol CNNRF.
“We achieved impressive growth by making significant strides in expanding our portfolio of diverse, high-potential assets. We established a unique platform to leverage the Cannabis market by accessing and deploying capital in strategic assets. Our value for investors is founded on a business model of accessing synergistic, growth-ready assets in North America’s emerging cannabis market. Moving forward, our strong cash position and proven expertise, will allow us to continue this growth trajectory and to increase our foothold in a thriving market with significant high growth opportunities. With our RTO transaction completed and operating on a new calendar fiscal year, we look forward to reporting financial results that will demonstrate the benefits of our investment strategy,” furthered Marc Lustig, CEO of CannaRoyalty.
“Since inception, our strategic vision for CannaRoyalty has been to build a portfolio of assets in high-growth sub-sectors of the rapidly expanding cannabis market. With the ability to access and deploy capital and provide financial acumen and industry expertise, we will leverage our network of investments to drive synergies and growth across our platform. This includes developing cannabis brands for safe and effective medical applications,” said Marc Lustig, CEO of CannaRoyalty.
CannaRoyalty’s audited consolidated financial statements and management’s discussion & analysis (“MD&A”), for the nine month period ended December 31, 2016, are available via CannaRoyalty’s website at www.cannaroyalty.com and have been filed on SEDAR at www.sedar.com.
The Company also announces that it has retained Terre Partners to assist in communicating its corporate, financial and long-term investment messages to shareholders and investors, while continuing the existing progress of building a strong public brand and investor base over the next 6 months. Terre Partners provides investor relations and capital advisory services to public companies in North America and specializes in the development and execution of strategic investor communications programs. Terre Partners is privately-owned headquartered in Toronto.
CannaRoyalty is a fully integrated, active investor and operator in the legal cannabis sector. Our focus is to build and support a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt and licensing agreements.
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Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in CannaRoyalty’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements including the Company’s expectations with respect to pursuing new opportunities and its future growth and other statements of fact.
Although CannaRoyalty has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US Federal Laws; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. CannaRoyalty disclaims any intention or obligation to update or revise such information, except as required by applicable law, and CannaRoyalty does not assume any liability for disclosure relating to any other company mentioned herein.