VANCOUVER / ACCESSWIRE / May 19, 2020 / World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the 'Company' or 'World-Class') provides an update regarding its business and operational initiatives:
- Pineapple Express Delivery: At the end of March 2020, World-Class acquired a controlling interest in Pineapple Express Delivery Inc. ('PED'), a leading logistics technology company offering specialized delivery services for both the medical and recreational cannabis markets (including same-day delivery in the Greater Toronto Area. Since the Company's acquisition of a controlling interest in PED, PED has:
- expanded its services into the Ontario cities of Barrie, Ottawa and London;
- entered into an agreement with CannaLogic Solutions Inc., an arm's length, privately held, B.C.-based company, to provide Canadian cannabis dispensaries a one-stop shop/a-la-carte e-commerce and logistics management software platform;
- expanded its services to provide same-day and next-day delivery of wine, spirits and beer products from The Saskatoon Co-op, to its retail customers in Saskatoon, Warman and Martensville;
- launched and commenced operations of the PED cannabis depot in Ottawa (as at May 14, 2020); and
- for the month of April 2020, recorded unaudited revenue totaling $819,931 (April 2019 - $21,981), gross profit of $404,084, (April 2019 - deficiency of $21,066), and pre-tax net income of $188,428 (April 2019 - Net loss of $400,233).
- Canntab Therapeutics Limited: World-Class and Canntab Therapeutics are finalizing the Definitive Agreement to deploy extraction and processing systems for cannabis and hemp at Canntab's licensed facility in Markham, Ontario. A leading developer of advanced, pharmaceutical-grade formulations of cannabinoids and terpenes, Canntab is a Health Canada license holder (Standard Processing, Sales (Medical), Research, and Industrial Hemp). In addition, the February 25, 2019 hemp supply and loan agreement with Canntab Therapeutics Ltd. and FSD Pharma Inc., as previously announced on February 28, 2019, remains active.
While World-Class continues to grow and expand, management has reevaluated its business plan to align with changing market conditions. The downturn in the cannabis and hemp industries which began in 2019 has been further amplified by the arrival of the global COVID-19 pandemic. These market circumstances have impacted some of our previously announced ventures and as a result, the Company announced today that the following ventures will not be proceeding:
- Deployment of an extraction centre with FV Pharma Inc. in Cobourg, Ontario, as previously announced on September 25, 2019;
- Deployment of an extraction centre with Nutralife Holdings LLC. in Imperial County, California and the related Consulting Services Agreement with Nutralife Farming LP, as previously announced on December 11, 2019;
- Revenue Collaboration Agreement with Parity Partners PBC, as previously announced on March 25, 2019; and
- Supply of a full extraction and processing facility for Puriflor Enterprise Inc., as previously announced on March 28, 2019.
Rosy Mondin, CEO and Director of World-Class stated: 'This is a challenging time around the world and here at home in Canada. Notwithstanding the global volatility created by the COVID-19 pandemic and the growing pains experienced by the cannabis industry in Canada and globally, the operational adjustments announced today are an important step in streamlining our direction and preserving resources to be utilized in more focused priorities. We are proud of our ability to adapt and pivot to meet today's market realities. These proactive steps will result in a healthier and stronger company that will continue to innovate, maximize production and reduce costs and be a strong industry competitor.'
The Company cautions that figures for PED's revenue, gross profit and net income have not been audited and are based on calculations prepared by the management of PED. Actual results may differ from those reported in this release once these figures have been audited.
About World-Class Extractions Inc.
World-Class is an innovation-driven company which deploys and manages custom-built extraction centers for licensed cannabis and hemp processors. Utilizing its custom technology and processes, World-Class enables its licensed partners to efficiently produce high-margin cannabis and hemp concentrates and oils. Through its relationships with licensed partners, World-Class has the ability to offer toll processing of cannabis and hemp to licensed third parties that lack the expertise and equipment required to produce high-quality cannabis and hemp concentrates and end-products. In addition, Pineapple Express Delivery Inc., a World-Class subsidiary, offers legal cannabis delivery services for both the medical and recreational markets in Ontario, as well as certain other provinces within Canada.
Neither the Canadian Securities Exchange nor its Regulation Service 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 of the Company.
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, including with respect to the deployment of extraction and processing systems for cannabis and hemp at Canntab's licensed facility in Markham, Ontario. 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 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: