PENTICTON, BC / ACCESSWIRE / March 29, 2021 / EastWest Bioscience (the "Company" or "EastWest") (TSXV:EAST), a vertically integrated wellness holding company that owns manufacturing facility with retail presence across Canada, reported its financial results for the three and six months ended January 31, 2021. All figures are reported in Canadian dollars unless otherwise indicated. EastWest's financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS").
EastWest Highlights - For the three and six months ended January 31, 2021
The Company's manufacturing subsidiary, Orchard Vale Naturals, experienced a triple digit growth. Third-party manufacturing posted a $162,082 revenue, a 166.25% growth from the previous quarter at $60,876, and a 180% growth from the six months ended January 31, 2020 at $79,098.
The Company's consolidated net loss for the three months ended January 31, 2021 was $208,194, a 33% improvement from the net loss of $311,395 in the previous quarter.
The improvement in the Company's net loss was primarily driven by the continued focus on cost reduction initiatives and increased revenue from Orchard Vale Naturals. The cost reduction initiatives focused on general and administrative expenses, which dropped by $149,096 from the comparable period, a 29% decrease.
The Company engaged an external talent recruitment agent to assist in finding the right candidates that will upgrade the talent level of our team. For the six months ended January 31, 2021, the Company has recruited seven new team members for various key roles throughout the organization.
Three months ended | ||||
January 31, 2021 | October 31, 2020 | July 31, 2020 | April 30, 2020 | |
$ | $ | $ | $ | |
Revenue | 349,735 | 274,483 | 198,774 | 231,248 |
General and administrative expenses | -366,917 | -449,611 | -491,503 | -442,283 |
Net loss | -208,194 | -311,395 | -291,097 | -374,690 |
Rodney Gelineau, CEO of EastWest, states, "We are investing heavily in both Orchard Vale Naturals, our manufacturing subsidiary and Sangsters's, our franchise retail subsidiary. We are purchasing new equipment to keep up with the demand for supplements manufacturing and food packaging services. We invested hundreds of thousands of dollars in new inventory and have engaged a marketing & advertising agency for Sangster's rebranding initiatives."
Gelineau adds, "Although we are pleased with the tremendous growth we are seeing on our manufacturing subsidiary and the positive trajectory of Sangster's restructuring, we are not putting our foot off the gas pedal and aim to break another record next quarter. We will be announcing soon further cost reduction initiatives and additional revenue streams we are working on."
About EastWest Bioscience
EastWest Bioscience is a vertically integrated wellness company with a multitude of business units and assets that allow for a seed-to-sale supply chain management. We source our raw material, process, manufacture, test, brand, market, and distribute our products to our customers in Canada, the United States, and beyond.
The Company's retail subsidiary is the award winning, Canadian, natural health retail franchise - the Sangster's Health Centre's - with over 40 years of legacy in the health and wellness industry. Sangster's goal is to provide natural choices through quality products and educated advice for a healthy lifestyle. Sangster's Health Centres occupies a unique position in the industry, the stores provide vast knowledge and safe natural remedies for the prevention and treatment of disease and ailments. Sangster's introduction and development of over 202 exclusively labeled products (vitamins, mineral, herbs, proteins, natural body care and organic foods) catapulted Sangster's name and product into a large number of Canadian households. From a solid base in Saskatchewan, Sangster's has become a national brand name with franchise stores located across Canada.
Orchard Vale Naturals is the Company's manufacturing arm that is certified with a Health Canada Site License and has GMP Certified NHP Manufacturing capabilities. Orchard Vale Naturals specialize in custom blends and production runs of all sizes, small to large, for top-quality products with quick turnaround times. Orchard Vale Naturals operate out of the 34,000 sq Health Canada licensed facility in Penticton, British Columbia that is owned by EastWest Bioscience and is the Head Office for all of its Canadian operations.
ON BEHALF OF THE BOARD OF DIRECTORS
EASTWEST BIOSCIENCE GROUP
"Rodney Gelineau"
Co-Founder, Chief Executive Officer and Director
TSXV - Symbol: EAST
Company Website: www.eastwestbioscience.com
Contact: Rodney Gelineau on 1-800-409-1930 or investors@eastwestscience.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the terms and conditions of the Acquisition. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; and delay or failure to receive board, shareholder or regulatory approvals. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: EastWest Bioscience Inc.
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