Fourth Quarter Business Highlights
- Posted quarterly revenue of $3.25 million ($11.16 million for the year) consisting of hemp-derived product sales in Europe of $2.56 million ($9.88 million for the year) and sales from cannabis products in Canada of $0.69 million ($1.28 million for the year).
- Sales in Europe increased across all product lines, including HemPoland's newly launched line of CBD topicals.
- Quarterly sales in Canada increased marginally due to limited production from the Ancaster facility. TGOD initiated production in its hybrid greenhouse in November 2019, with an eight-week flowering cycle.
- Unveiled a new strategic, construction and operating plan, including a series of actions to reduce the Company's financing requirements and to calibrate construction of cultivation facilities to align with the adjusted market conditions in Canada. In particular, the Company's construction of its Valleyfield facility has been demarcated into smaller phases, while providing TGOD with the optionality to recommence expansion as market conditions evolve.
- Received orders from the provincial cannabis boards of Alberta, British Columbia, Newfoundland, Nova Scotia, Manitoba and Saskatchewan, significantly expanding its Canadian distribution footprint. The Company also introduced two new strains of cannabis in Ontario.
- Obtained a licence amendment from Health Canada, allowing the Company to launch cultivation operations at its Valleyfield facility in two zones measuring a total of 46,500 square feet.
- Completed a bought deal financing of 36,800,000 units and 20,608,000 warrants at a price per unit of $0.75 for aggregate gross proceeds of $27.6 million. Each unit is comprised of one common share and one-half of one common share purchase warrant of the Company. Each full warrant entitles the holder to purchase one common share at an exercise price of $1.00 for a period of 36 months from the date they were received.
- Closed a senior secured first lien credit facility with a commercial lender with the first tranche of the credit facility producing gross proceeds of $27.7 million with no principal repayments required for the first twelve months. The second tranche of the credit facility consisting of an additional $15 million may be advanced upon the achievement of certain operational milestones and approval from the lender's credit committee. In connection with the loan, the Company issued the lender 7,000,000 common share purchase warrants exercisable for a period of 36 months following the date of issuance at a price per share of $1.00. The Company continues to evaluate additional financing options to deliver its operating plan.