Gatineau-based hemp and cannabis company LiveWell Canada reported its first public earnings on Monday since going public via reverse takeover in June, giving investors the first look into the firm as it builds up its production capacity and supply deals.
LiveWell (TSX-V:LVWL), which has converted an Ottawa greenhouse into a grow-op for cannabis and hemp products, has yet to produce meaningful revenue and is still pending Health Canada licence approval to grow pot.
Most of the income on its balance sheet flows from outdated revenue streams and the acquisition of a local family farm. The company posted a net loss of $700,000 on the first six months of the year as a result of winding down these legacy businesses.
OBJ360 (Sponsored)
Investing in the next generation: Ottawa businesses encouraged to build futures through mentorship
Do you remember the mentor in your life who helped shape your career? In the business world, success often depends on the connections we build, fuelled by guidance and support
Last month Ottawa Salus launched “Opening Doors to Dignity,” a $5-million campaign to construct a 54-unit independent living building on Capilano Drive. Set to open in late 2025, this innovative
With LiveWell’s recent acquisition of Windsor-based cannabis wellness firm Acenzia, however, the company writes in financial filings that it expects revenue to increase by $2 million in its third quarter ending in March 2019.
The company announced Tuesday that it has signed a supply deal with a private equity firm in the United States. Nevada’s Global Wellness Distributors will pay LiveWell an initial deposit of US$3 million on a supply of CBD, the non-psychoactive compound in cannabis.
As part of the deal, LiveWell will provide a minimum of 1,000 kilograms of CBD-based product per month to Global Wellness, which will in turn distribute the substances to buyers. The minimum volume increases to 3,000 kilograms in April.
The deal, which will see both firms share in net profits, has an initial 15-month term with the possibility of four one-year extensions.
LiveWell announced in August that it had also signed a supply deal in Brazil and pegged the value of that contract at US$35 million.
President and CEO David Rendimonti positioned the U.S. supply deal as an example of the LiveWell’s potential in the CBD space, where researchers are exploring the compound’s therapeutic benefits.
“For some time now LiveWell has been quietly positioning itself to become a significant supplier of wholesale CBD to global companies looking to launch a multitude of CBD products. We recognized early on that if these companies were to enter the marketplace, a large-scale, reliable source of CBD would be required, and we have assembled the assets and partnerships to provide it,” he said in a statement.
“This is one of several partnerships we have developed that allows LiveWell to generate significant revenues at a nominal cost and no outlay of capital.”
