Benchmark Botanics Progresses in Q3 - Reports $7.84M Working Capital
Benchmark Botanics Inc. (BBT.C) released its financial and operational results for the third quarter ended Sept. 30, 2019.
Third quarter 2019 highlights:
- $11.3-million private placement financing;
- Canada sales licence received from Health Canada;
- Cannabis supply agreement with Province of British Columbia;
- Extraction facility under construction;
- Sept. 30, 2019, reported working capital of $7,847,980;
"Benchmark continued to progress through Q3 2019. The cannabis supply agreement with British Columbia represents another milestone for the Benchmark Botanic brand. The company is pleased to be making steps forward to higher-margin products with the construction of the Benchmark extraction facility," said William Ying, Benchmark Botanics' president and CEO.
Developments occurring during the three months ended Sept. 30, 2019:
- Cannabis sales licence received from Health Canada:
- The company, through its 100-per-cent-owned subsidiary, Potanicals Green Growers Inc., has received a sales licence from Health Canada, effective July 26, 2019.
- The licence allows Benchmark to supply and sell finished cannabis products to provincial governments throughout Canada and through Canada's approved distribution and retail supply chain. Benchmark will be providing recreational and medical dried cannabis, capsules and other forms of cannabis products, as the government of Canada makes more forms of the product legal for sale and consumption later this year.
- Cannabis supply agreement with British Columbia:
- In September, the company, through Potanicals, signed a licensed producer supply agreement for non-medical cannabis with the Province of British Columbia. Benchmark has signed an agreement with the B.C. Liquor Distribution Branch (BCLDB), the sole wholesale distributor of non-medical cannabis for British Columbia that will operate stand-alone public retail stores and provide on-line sales.
- Extraction facility under construction:
- On July 10, 2019, the company entered into an agreement with a construction company which provides for the goods and services for the construction of a 10,000-square-foot indoor extraction facility, which is located in the company's Peachland cannabis complex.
About Benchmark Botanics Inc.
Benchmark is a diversified multi-licensed cannabis producer focused on a three-way vertical business model targeting the medical, pharmaceutical, and recreational markets in Canada. The Company's business plan also includes a strategy to become a Canadian licensed producer to pioneer selling medical cannabis and hemp throughout Asia, where it is legal to do so.
Benchmark is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers, as well as developing international business partnerships to extend the Company's global footprint.
Benchmark's 100% owned subsidiary, Potanicals Green Growers Inc. is a Health Canada licensed producer under the Cannabis Act and its regulations (formerly ACMPR). The Company is producing at its indoor Peachland Cannabis Complex and is constructing a Phase II expansion of an additional 10,000 square foot extraction facility there. Along with cultivation and production, the company's Peachland BC facility also provides propagation, cultivation, cloning, storage, research and development, genetics and is progressing towards CBD oil extraction and an EU-GMP certification.
As part of its expansion strategy the company is working with a partner to complete a second facility, a 4-acre Greenhouse Operation in Pitt Meadows, BC.