World Class Extractions Provides Corporate Update

Rhea-AI Summary

World-Class Extractions (OTCQB: WCEXF) provides a corporate update highlighting its subsidiary, Pineapple Express Delivery. September revenues reached $767,545 with a 52% gross margin. B2B deliveries have doubled since April, totaling over 415,000. The company reports a monthly order volume of ~54,000 and a 99.90% on-time delivery rate. Additionally, World-Class holds a 50% stake in Cobra Ventures, which has a $11.5 million debenture investment in HydRx Farms. Lastly, board member Donal Carrol has resigned.

Positive

• Pineapple Express Delivery's September revenue was $767,545 with a 52% gross margin.
• B2B monthly revenue doubled since April 2020, with 415,000 deliveries completed.
• Pineapple Express Delivery's monthly order volume surged to approximately 54,000 orders, up from 6,500 in January 2020.

Negative

• HydRx Farms' debenture was originally due in August 2019, indicating potential financial distress.
• The announcement of Donal Carrol's board resignation may create uncertainty in leadership.

VANCOUVER, BC / ACCESSWIRE / November 16, 2020 / World-Class Extractions Inc. (CSE:PUMP) (FRA:WCF) (OTCQB:WCEXF) (the "Company" or "World-Class"), is pleased to provide a corporate update.

Update regarding Pineapple Express Delivery

Pineapple Express Delivery Inc. ("Pineapple Express Delivery"), a company in which World-Class has a controlling interest, offers compliant and secure delivery of controlled substances and regulated products, including medical and recreational cannabis delivery in Ontario, Manitoba, and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan.

Pineapple Express Delivery's September revenues total $767,545 (unaudited). B2B monthly revenue has more than doubled since April 2020 with gross margin of 52%, with revenue from its B2C segment over the last 4-months remaining relatively consistent, with gross margin of 30%. B2B deliveries continue to increase month over month with over 415,000 deliveries completed to date, and retail deliveries expanding to 6-days per week, 2-3 runs per day. Within the province of Ontario, Pineapple Express Delivery offers same-day cannabis delivery to 17 jurisdictions and offers 3-day delivery to 31 jurisdictions. Pineapple Express Delivery will soon be launching in three (3) new jurisdictions in Ontario and working to launch alcohol delivery to service the Greater Toronto Area (GTA).

Randy Rolph, CEO & Founder of Pineapple Express Delivery, stated: "I am very proud of Pineapple Express Deliveries achievements and growth so far this year. In Ontario, we have increased to over 150 drivers and 5 delivery hubs. In October 2020, our drivers logged 375,00 kms (versus 80,000 kms in January 2020) with 268 new Forward Sortation Areas (FSA) added (an FSA is a geographical unit based on the first three characters in a Canadian postal code). In addition, Pineapple Express is seeing the rise in demand for same-day delivery of all types of goods and is looking to integrate a new brand under Pineapple Express Delivery to capitalize on this demand."

Rosy Mondin, CEO of World-Class, stated: "We are pleased with our investment in Pineapple Express and proud of their successes, achieving a monthly order volume of ~54,000 orders (up from ~6,500 in January 2020), with a 99.90% On-Time delivery success rate. With the continuing potential for increases in COVID-19 lockdown measures and with winter coming, coupled with the continuing growth in its B2B sector, Pineapple Express Delivery anticipates that its revenues will increase over the coming months."

Update regarding Cobra Ventures & HydRx Farms Debenture Investment

The Company recently announced that it holds a 50% equity interest in Cobra Ventures Inc. ("Cobra"), which acquired an 8% Senior Convertible Debenture of HydRx Farms Ltd. o/a Scientus Pharma ("HydRx") in the principal amount of $11,500,000 plus accrued and unpaid interest and charges, from Aphria Inc. (a non-related party) and originally due August 14, 2019 (the "Debenture"). The purchase price for the Debenture was $5,000,000.

World-Class has loaned Cobra $2,500,000, which is secured by the Debenture, along with other secured debt obtained by Cobra. As a senior loan instrument, Cobra has the right to make demand for repayment at any time. This loan obligation is secured against all assets of HydRx, including its cannabis production facility and land located at 1130 Champlain Court, Whitby, Ontario.

Rosy Mondin, Director and CEO of World-Class, has been also been appointed to the board of directors of HydRx as the parties continue to review HydRx's operations with a view to streamline and continue operations as a going concern.

Director Resignation

The Company further announces that Donal Carrol has resigned from the board of directors of the Company. The Company would like to thank Mr. Carroll for his contributions to the Company and wishes him well in his future endeavours.

About World-Class

World-Class is an innovation-driven company with a principle focus on the rapidly evolving cannabis and hemp industries. Through its subsidiaries Soma Labs Scientific Inc. and Greenmantle Products Inc., World-Class deploys and manages custom-built extraction centres utilizing its custom systems, technology, and processes to efficiently produce high-quality cannabis and hemp concentrates and end-products. In addition, through its subsidiary Pineapple Express Delivery Inc., the Company offers compliant and secure delivery of government-regulated products, including medical and recreational cannabis in Ontario, Manitoba, and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan.

Investor Contact
World-Class Investor Relations
1-437-266-1968
ir@worldclassextractions.com
https://worldclassextractions.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections, or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals, and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in the Company's public filings under the Company's SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events, or results not to be as anticipated, estimated, or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise unless required by law.

SOURCE: World-Class Extractions Inc.

View source version on accesswire.com:
https://www.accesswire.com/616879/World-Class-Extractions-Provides-Corporate-Update

FAQ

What were the revenues reported by World-Class Extractions for September 2020?

World-Class Extractions reported revenues of $767,545 for September 2020.

What is the gross margin for Pineapple Express Delivery?

Pineapple Express Delivery achieved a gross margin of 52% in September 2020.

How many deliveries has Pineapple Express completed to date?

Pineapple Express has completed over 415,000 deliveries to date.

What is the monthly order volume for Pineapple Express Delivery as of October 2020?

The monthly order volume for Pineapple Express Delivery is approximately 54,000 orders.

What is the ticker symbol for World-Class Extractions?

The ticker symbol for World-Class Extractions is WCEXF.