Q1 2024 Financial Results
CannaPharmaRx (OTC PINK:CPMD) has announced its Q1 2024 financial results, marking the commencement of revenue generation. The company reported revenues of $25,839 for Q1 2024, compared to $0 in the same period in 2023. Operating expenses decreased by $367,491, from $720,277 in Q1 2023 to $352,786 in Q1 2024. Despite this, the company reported a net loss of $11,594,301 or $0.03 per share, up from a net loss of $1,418,229 or $0.00 per share in Q1 2023. The increased loss was mainly due to non-cash events including changes in fair value of derivative liabilities and obligations to issue shares.
Operational highlights include receiving key licenses from Health Canada and the Canada Revenue Agency (CRA), as well as strategic supply agreements with Israeli and Latin American partners. The company aims for accelerated revenue growth in FY2024, with plans to achieve regular harvesting and increased international sales. CannaPharmaRx plans to expand its customer network, obtain EU GMP certification, and leverage its advanced production facility to enhance profitability.
- Commencement of revenue with $25,839 reported in Q1 2024.
- Operating expenses decreased significantly by $367,491.
- Strategic supply agreements with Cantek Holdings in Israel and ICAN Green S.A. de C.V. in Latin America.
- Obtained critical certifications like IMC-GAP and IMC-GACP for selling cannabis in Israel.
- Product shipments began to Canadian and international markets.
- Extinguishment of convertible notes, removing future dilution risks.
- Net loss increased dramatically to $11,594,301 compared to $1,418,229 in Q1 2023.
- Non-cash events significantly impacted financial results, including a $8,272,588 increase in derivative liability value.
CannaPharmaRx Announces Q1 2024 Financial Results Showcasing Commencement of Revenue
CALGARY, AB / ACCESSWIRE / June 28, 2024 / CannaPharmaRx, Inc. (OTC PINK:CPMD), a future leader in ultramodern, highly efficient cannabis production facilities announced today that it filed its first quarter 2024 financial reports for the quarter ending March 31, 2024, on Tuesday, June 25, 2024.
Q1 2024 Financial Highlights:
Revenue of
Overall operating expenses for the three months ended March 31, 2024, were
During the three months ended March 31, 2024, the Company experienced a net loss of
Net cash used in operating activities decreased from
For additional information, please visit www.sec.gov for full filing.
2024 Q1 Operational Highlights and Recent Developments:
The Company received an operating license from Health Canada on December 9, 2022, and a cannabis license from the Canada Revenue Agency ("CRA") on December 22, 2022.
CannaPharmaRx anticipates developing a consistent cadence of growing, harvesting, cultivating, and delivering world class products on a regular basis and expects to begin to see a strong and accelerated revenue increase during the 2024 fiscal year ("FY2024"). The production facility is expected to be operating at maximum capacity during FY2024, achieving regular plantings with staggered production so that we are constantly harvesting and delivering high-quality products to multiple sources. Our focus continues to be on international sales with high gross margin products, resulting in greater profitability using our state-of-the-art production facility to grow on demand against purchase contracts using smart inventory management which will contribute to higher turnover and regular deliveries. We will continue to collaborate with international partners on multiple continents and develop proprietary online, data-driven technology.
FY2024 growth goals include delivering the first of several harvests during the second and third quarter; increasing our strategic partner network; receiving our European Union license for Good Manufacturing Practices ("GMP") to allow us to expand distribution; expanding our customer network; becoming a world leader in unique genetic strains with a current catalogue of over 500 desirable strains developed and owned by our company; and continuing to improve our balance sheet.
In support of these goals:
On February 16, 2024, the Company announced that we finalized a strategic supply agreement with Cantek Holdings, an Israeli corporation, whereby the Company will supply 1,000kgs of product annually. | ||
On February 23, 2024, the Company announced that we successfully obtained our Israel Medical Cannabis ("IMC") Good Agricultural Practices ("GAP") and Good Agricultural and Collection Practices ("GACP") certifications. The IMC-GAP and IMC-GACP certifications are the standard for cannabis certification in Israel and are required to sell cannabis in Israel, a world leader in the medical cannabis industry. | ||
On March 5, 2024, the Company announced that we finalized a supply agreement with ICAN Green S.A. de C.V. ("ICAN"), a division of ICAN Investing Group LLC, to supply product for distribution in the Latin Americas with a primary focus on Mexico and Panama. The agreement is subject to certain minimum required annual levels of purchases by ICAN. | ||
On March 11, 2024, the Company shipped its first product to a Canadian LP for distribution within Canada. On March 14, 2024, we announced that our products are approved for sale in multiple countries and expected to receive a purchase order from Israel in the company weeks, which we subsequently did. On April 2, 2024, CannaPharmaRx announced extinguishment of convertible notes removing toxic overhang and significant future dilution. |
"As we deliver on previously announced supply contracts, our revenues should increase dramatically. CannaPharmaRx is gearing up for rapid growth, with a plan to become a leader in advanced cannabis cultivation. We have begun shipping to Israel and expect to begin shipping to Europe during mid-Q3 and Latin America during late Q4. I have previously outlined strategic initiatives, including strengthening the board with expert members, streamlining licensing processes, identifying accretive joint ventures, partnerships and acquisitions, and ensuring product pre-sales through partnerships. These efforts are to set a solid foundation for the company to achieve projected revenue targets" stated Dean Medwid, CEO of CannaPharmaRx.
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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