CALGARY, AB / ACCESSWIRE / August 27, 2020 / CannaPharmaRx, Inc. (OTC PINK:CPMD) a future leader in ultramodern, highly efficient cannabis production facilities in Canada, announced that they have filed their second quarter 2020 financials for the quarter ending June 30, 2020.
During the second quarter of 2020, the company was still a non-revenue generating company as it had been in 2019. As of June 30, 2020, the company had $3,789 cash on hand, as compared to $1,547 on December 31, 2019. This increase is largely due to interest free loans of $215,158 from a director and the Company CEO. Some officers and employees are also currently deferring salaries.
Total operating expenses increased from $688,863 during Q2 2019 to $787,484 during Q2 2020. This is primarily due to consulting fees paid during the period. Net loss increased to $1,472,479 from $748,079 in the comparable quarter of 2019. This was largely the result of the higher interest expense. To view the entire filing, please visit www.sec.gov.
Operational Highlights:
Activities to date have been primarily focused on two projects: the Hanover Project and the Great Northern Project. Other additional acquisitions are being pursued as well. The company anticipates closing one or more of these additional purchases during the current quarter.
The company has continued to acquire an ownership position in GN Ventures, Ltd. (aka Great Northern Canada, Ltd.), a company also involved in the production of cannabis in Canada. Based upon various discussions that have taken place, the company anticipates additional purchases during the remainder of 2020. GN owns a 60,000 square foot cannabis cultivation and grow facility located on 38 acres in Stevensville, Ontario, Canada. GN estimates total production capacity from the facility to be up to 12,500 kilograms of cannabis. On July 5, 2019 the company received a license to cultivate from the Canadian Ministry of Health. As a result, in October 2019, GN began cultivation activities with the initial harvest in Q1 2020. Additionally, GN intends to increase production by further developing adjacent land.
The facility purchased as part of the Alternative Medical Solutions (the Hanover Project) acquisition is a 48,750 square foot cannabis grow facility built on a 6.7 acre parcel of land located in Hanover, Ontario, Canada. The exterior construction of the building has been completed. No interior construction has begun. Upon full completion, the facility will provide an annual production of 9,500 kilograms of cannabis.
CannaPharmaRx continues towards their goal of reviewing and researching multiple new acquisition and development opportunities within the area of cultivation and genetics. "As mentioned in a prior release, management believes we are entering our revenue growth phase and the company is beginning to make progress towards becoming a leader within the cannabis production and extraction industry. We anticipate many developments to materialize during Q4 and believe that we further validate ourselves with the closing of additional acquisitions," stated Nick Colvin, CEO of CannaPharmaRx.
On August 21, 2020, the company held its Annual General Meeting of Shareholders. By unanimous shareholder vote, the following individuals were elected as Directors: Richard Orman, Dominic Colvin, Marc Branson, Matt Nicosia and Jim Samuelson.
In a subsequent meeting of the Board of Directors, the following individuals were appointed officers: Dominic Colvin, CEO, Andrew Steedman, COO, and John Cassels, CFO and Secretary.
About CannaPharmaRx, Inc.
CannaPharmaRx is focused on the acquisition and development of state-of-the-art cannabis grow facilities located in Canada. CPMD owns a 48,500 square foot cannabis grow facility presently under development and is currently 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. CannaPharmaRx is in the process of completing an application to list its common stock on the Canadian Stock Exchange with initial trading anticipated to being during the third quarter of 2020.
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:
CannaPharmaRx Contact
Attention: Richard Brown
Ness Capital & Consulting
rbrown@nesscc.com
(978) 767-0048
Brokers and Analysts:
Chesapeake Group
(410) 825-3930
info@chesapeakegp.com
SOURCE: CannaPharmaRx
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https://www.accesswire.com/603560/CannaPharmaRx-Inc-Reports-Second-Quarter-2020-Financials-and-Annual-General-Meeting-of-Shareholders
