Maricann Q2 Revenue Exceeds $1.1 Million

Maricann Reports Q2 Financial Results

TORONTO, Aug. 24, 2018 (GLOBE NEWSWIRE) — Maricann Group Inc. (CSE:MARI)(FRANKFURT: 75M)(OTCQB:MRRCF)(“Maricann” or the “Company”) has reported its financial and operating results for the first quarter ended June 30, 2018. All figures are stated in Canadian Dollars.

We have achieved significant supply agreements with a number of provinces to supply our cannabis products which is expected to transform into shareholder value with compelling revenue in Q4 2018, 2019 and beyond.

Ben Ward CEO of Maricann

As previously disclosed, the Company has reserved product for the recreational market commencing October 17th and its pharmacy joint initiative commencing October 1st. The Company made the conscious decision to preserve inventory to meet demand for these strategic long-term sales channels.

Highlights for the quarter include:

  • Received Health Canada approval for cultivation in our state-of the-art, purpose built cannabis grow facility based in Langton, Ontario.
  • The Company received GMP certification for our Canadian operations, making Maricann 1 of only 5 companies in the world to be accredited with this recognition.
  • During the quarter we completed our acquisition of Haxxon AG, which provided access to the Swiss market and saw an increase in our European footprint.
  • Q2 saw the first seeds planted for our outdoor hemp operations. This crop will provide raw materials for our European nutraceutical business, MariPlant.
  • Entered into a Letter of Intent to acquire a license in Malta as requested by Malta Enterprise, the government entity responsible for issuing such licenses.
  • Expanded our management team with the hiring of Morten Brandt as our European General Manager. Pharmaceutical executive formerly with Norgine, Mr. Brandt has a wide range of experience within the Life Sciences sector and will be based in Germany.
  • Entered into a supply agreement with the Manitoba Liquor and Lotteries Committee, to provide quality products to Manitobans.
  • Subsequent to June 30, 2018, the Company acquired all of the outstanding shares of Proimaging AG (“Proimaging”), a corporation incorporated in Switzerland. Proimaging’s sole asset is a proposed clean-room cultivation, processing and extraction plant located in Ebersbach, Germany. The total purchase price paid was €3,000,000, which includes the assumption of all of the liabilities of Proimaging amounting to €1,016,463. As at June 30, 2018, the Company had paid a reservation fee and rent of €160,000 ($233,582) which were deducted from the total purchase price per the terms of the share purchase agreement. The remaining purchase price of €2,840,000 ($4,380,384) was paid subsequent to June 30, 2018.

At June 30, 2018, Maricann recognized revenue of $1,157,887 and $1,758,478 for the three and six months ended June 30, 2018, respectively, as compared to $661,602 and $1,804,769 during the same periods in 2017 an increase of $496,285 or 75% for the three months ended June 30, 2018 and a decrease of $46,291 or 3% for the six months ended June 30, 2018. The increase in revenue during the three months ended June 30, 2018 compared to June 30, 2017 is primarily related to two large bulk supply orders completed during Q2 2018.

For the six-months ended June 30, 2018, cash flow used in operating activities was $19,565,941 and the Company had used cash of $35,195,964 related to investing activities. Investing activities during the period relate to the Company’s new building in Langton and other facility upgrades and the purchase of production equipment, computers and furniture as well as advancements towards investments of the German subsidiary. Cash flows provided by financing activities for the six months ended June 30, 2018 were $38,581,031. The cash provided by financing activities is primarily due to an issuance of special warrants in January 2018 which resulted in proceeds, net of issuance costs, of $37,794,030, proceeds received on exercise of stock options and warrants of $1,850,529 and offset by interest payments of $988,131 on the Company’s convertible debentures and repayment of capital leases of $75,398. Subsequent to June 30, 2018, the Company closed a private placement offering of special warrants for aggregate gross proceeds of $37,401,760. See press release dated August 10, 2018.

The Company’s complete set of financial statements for the period ended June 30, 2018 and the corresponding management’s discussions and analysis have been filed on the SEDAR website at

About Maricann Group Inc.

Maricann is a vertically integrated producer and distributor of cannabis for medical purposes. The Company was founded in 2013 and is based in Burlington, Ontario, Canada and Munich, Germany, with production facilities in Langton, Ontario where it operates a medicinal cannabis cultivation, extraction, formulation and distribution business under federal licence from the Government of Canada. The Company also has production operations in Dresden, Saxony, Germany and Regensdorf, Switzerland. Maricann is currently undertaking an expansion of its cultivation and support facilities in Canada in a 942,000 sq. ft. (87,515 sq. m) and will continue to pursue new opportunities in Europe.

Original press release

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