CannaPharmaRx Releases Year-in-Review Letter to Shareholders and Discusses Revenue Opportunities for 2023

Rhea-AI Summary

CannaPharmaRx, Inc. (OTC PINK:CPMD) reported substantial progress in 2022, setting the stage for significant revenue growth in 2023. The company finalized a long-term lease for its Alberta facility, acquired essential cannabis strains, and secured necessary licenses from Health Canada and the CRA. A noteworthy offtake agreement was established with Spring Medical Group, potentially generating up to $12 million. Looking ahead, CannaPharmaRx plans to execute non-dilutive funding, complete key acquisitions, and achieve an annual run rate nearing $30 million while aiming for operational profitability and positive cash flow in the latter half of 2023.

Positive

• Established a long-term lease for the Alberta facility.
• Acquired key cannabis strains to enhance the product portfolio.
• Received Health Canada and CRA licenses to legally cultivate and sell cannabis.
• Secured an offtake agreement with Spring Medical Group, valued between $8 - $12 million.
• Plans to achieve annual revenue of nearly $30 million.
• Aiming for operational profitability and positive cash flow in the second half of 2023.

Negative

• None.

CALGARY, AB / ACCESSWIRE / January 30, 2023 / CannaPharmaRx, Inc. (OTC PINK:CPMD), a future leader in ultramodern, highly efficient cannabis production facilities today released a letter from its Chief Executive Officer, Dominic Colvin.

Dear Shareholder,

Last year was a year of significant progress and preparation. We built the foundation for strong growth in 2023. What the company accomplished during 2022 was necessary for the strong annual revenues expected moving forward.

2022 Highlights:

• Finalized long-term lease on the Cremona-Area Alberta Facility previously known as the "Aurora Mountain" operation
• Acquired key strains for future sale to enhance product portfolio
• Hired key employees
• Received Health Canada cultivation license and Canada Revenue Agency license (CRA). These allow the company to legally grow cannabis and sell its crop to other licensed producers and licensed wholesalers
• Negotiated offtake agreement with Spring Medical Group for up to 3,000 kg. ($8 - $12 million based depending on quantity and order timing discounts)

2023 Expectations:

• Executing non-dilutive funding
• Closing financial platform acquisition
• Accelerating E-commerce applications
• Completing first harvest during Q1 2023
• Completing additional offtake agreements in multiple countries
• Producing and delivering at an annual run rate of nearly $30 Million
• Continue to expand opportunities within the cannabis Industry

Our prospects for 2023 are strong. The company and its executive management team are committed to building long-term shareholder value. Management will keep expenses, including compensation, in check while growing revenues significantly. As a result the company will create some of the highest gross and net margins in the industry. CannaPharmRx anticipates transitioning to operational profitability and positive cash flow during the 2^nd half of the year. We remain committed to improving all financial metrics and improving communication during 2023.

About CannapharmaRx, Inc.

CannapharmaRx is focused on the acquisition and development of state-of-the-art cannabis grow facilities in Canada. CPMD is in discussion with other companies regarding potential acquisitions. CannapharmaRx's business strategy is to become a leader in high quality and low-cost production of cannabis through the development, acquisition, and enhancement of existing facilities. CannapharmaRx is committed to operating high-quality facilities utilizing the latest technology in combined heat and power generation to ensure being a low-cost producer of cannabis.

Safe Harbor Statement

Cautionary Note Regarding Forward-Looking Information or Statements

This press release contains forward-looking information or statements. All statements that are or information which is not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations, or beliefs of future performance, are 'forward-looking information or statements.' Forward-looking information or statements can be identified by the use of words such as 'plans,' 'expects,' or 'does not expect,' 'is expected,' 'estimates,' 'intends,' 'anticipates,' or 'does not anticipate,' or 'believes,' or variations of such words and phrases or statements that certain actions, events or results 'may,' 'could,' 'would,' 'might' or 'will' be taken, occur or be achieved. With respect to forward-looking information and statements contained herein, Management of CannapharmaRx has made numerous assumptions, including, among other things, assumptions about general business and economic conditions. Such forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties, and other factors that may cause actual results, events, or developments to be materially different from any future results, events, or developments expressed or implied by such forward-looking information or statements. Readers are cautioned not to place undue reliance on such forward-looking information or statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking information or statements. CannapharmaRx assumes no obligation to update any forward-looking information or statements, even if new information becomes available as a result of future events, new information, or for any other reason except as required by law.

Contact Information:
Brokers and Analysts:
Chesapeake Group
(410) 825-3930

SOURCE: CannaPharmaRx

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https://www.accesswire.com/737224/CannaPharmaRx-Releases-Year-in-Review-Letter-to-Shareholders-and-Discusses-Revenue-Opportunities-for-2023

FAQ

What significant achievements did CannaPharmaRx report for 2022?

CannaPharmaRx finalized a long-term lease for its Alberta facility, acquired essential cannabis strains, received cultivation and sales licenses, and established an offtake agreement with Spring Medical Group.

What are CannaPharmaRx's revenue expectations for 2023?

CannaPharmaRx anticipates achieving an annual run rate of nearly $30 million in 2023.

When does CannaPharmaRx expect to reach operational profitability?

CannaPharmaRx aims to achieve operational profitability and positive cash flow during the second half of 2023.

What licenses has CannaPharmaRx received?

CannaPharmaRx received licenses from Health Canada for cultivation and from the Canada Revenue Agency for sales.

What is the significance of the offtake agreement with Spring Medical Group?

The offtake agreement with Spring Medical Group could generate between $8 - $12 million in revenue based on order volume and timing.