Top Strike Announces Cannavative's Q1 2021 Performance and Record monthly sales for April 2021, and Nevada rescinding all Covid-19 mitigation protocols
Rhea-AI Summary
Top Strike Resources Corp., operating as Vencanna Ventures (OTCQB: TPPRF), announced a US$2 million loan agreement with Cannavative Group LLC, aiming for acquisition via the issuance of 360 million shares. Cannavative reported first-quarter sales of $3.2 million, a 48% increase year-over-year, with a record $1.6 million in April. The Nevada cannabis market is rebounding, with sales hitting $84 million in March. The company anticipates continued growth as tourism resumes, bolstered by the lifting of capacity restrictions.
Positive
- Cannavative's Q1 2021 sales reached $3.2 million, up 48% YoY.
- April 2021 set a monthly sales record of $1.6 million with a 49% gross margin.
- The Nevada cannabis market saw sales of $84 million in March 2021.
Negative
- None.
AI-generated analysis. How Rhea-AI works. Not financial advice.
CALGARY, AB, June 1, 2021 /PRNewswire/ - Top Strike Resources Corp. d.b.a. "Vencanna Ventures" (the "Corporation" or "Vencanna") (CSE: VENI) (OTCQB: TPPRF) announced on March 12, 2021 that it entered into a US
Cannavative cultivates and manufactures leading premium cannabis flower and products in the state of Nevada. Their products are currently sold in over
Cannavative's first quarter 2021 sales were
"Our staff's dedication and their continuance to strive for excellence has, and will continue to, positively impact the company's bottom line," stated Ross Kline, Cannavative's CEO.
"We couldn't be happier with the performance of Cannavative. We look forward to joining forces with such a dedicated and experienced team. Our collective future is quite bright indeed." stated David McGorman, Vencanna's CEO.
About Cannavative
Cannavative is a leading premium cannabis brand in the state of Nevada, producing a wide variety of flower and extracted products, including its award-winning infused pre-roll, the Motivator. Cannavative's products are sold in over
About Vencanna
On September 24, 2018, the Corporation announced the completion of a recapitalization financing, the appointment of a new management team and board of directors and commencement of trading on the CSE. The transactions have transitioned the Corporation to a merchant capital firm, rebranded as "Vencanna Ventures". The recapitalized Corporation focuses on early-stage global cannabis investment opportunities with an emphasis on strong managements that operate in state compliant jurisdictions with barriers to entry. The Corporation looks to provide its investors access to high-growth cannabis opportunities through strategic investments or acquisitions that are focused through-out the value chain (cultivation, processing, retail, distribution, and including ancillary businesses).
Forward-Looking Statements
This news release may include "forward-looking statements" which reflect the Corporation's and Cannavative's current expectations regarding the future results of operations, performance and achievements of the Corporation and Cannavative, respectively, including but not limited to: the signing of a definitive agreement in respect of the Transaction, including the terms thereof; timing for completion of the Transaction; required approvals for the completion of the Transaction and the expected receipt thereof; the business plan of the Corporation and Cannavative, including the business plan of the go-forward entity after completion of the Transaction; the anticipated benefits of the Transaction; reopening plans and expected tourist volumes in Las Vegas, and their effect on cannabis sales in the city; the market for medical cannabis in the United States; the effects of COVID-19 on the operations of Cannavative and the Nevada cannabis industry, generally; and expectations regarding the business plans of such companies. When used in this news release, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Corporation and Cannavative, including expectations and assumptions concerning: the Transaction, including CSE and shareholder approvals, the execution of a definitive agreement in respect thereof and the satisfaction of other closing conditions in accordance with the terms of such definitive agreement; the future operations of, and transactions contemplated by, the Corporation and Cannavative; the impact of increasing competition; timing and amount of capital expenditures; the legislative and regulatory environments of the jurisdictions where the Corporation will carry on business, have operations or plan to have operations; the ability of the Corporation to enter into contracts with companies to provide financing on acceptable terms; conditions in general economic and financial markets; the ability of the Corporation's investments to execute on their business plan; and the Corporation's ability to obtain additional financing on satisfactory terms or at all. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Corporation believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized.
Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, changes to global cannabis laws, how the developing U.S. legal regime will impact the cannabis industry, the ability of the Corporation to implement its corporate strategy, the state of domestic and international capital markets, the ability to obtain financing, changes in general market conditions and other factors more fully described from time to time in the reports and filings made by the Corporation with securities regulatory authorities. Except as required by applicable laws, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.
Third Party Data
Unless otherwise indicated, the market and industry data contained or incorporated by reference in this news release is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although Vencanna believes these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any survey. The Corporation has not independently verified any of the data from third party sources referred to or incorporated by reference herein and accordingly, the accuracy and completeness of such data is not guaranteed.
Non-GAAP Measures
Adjusted earnings before income, taxes, depreciation and amortization (EBITDA) is not a recognized measure under IFRS. Management believes that adjusted EBITDA is a useful financial metric to assess operating performance prior to consideration of how operations are financed, how results are tqxed, and how results are impacted by non-cash charges and charges that are irregular in nature or not reflective of a company's core operations. Investors are cautioned, however, that this measure should not be construed as an alternative to net income (loss) determined in accordance with IFRS as an indication of Cannavative's performance. Cannavative's method of calculating these measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Adjusted EBITDA is calculated as net earnings before income tax expense, depreciation and amortization of intangibles as well as transaction expense.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release.
View original content:SOURCE Top Strike Resources Corp.