Vancouver, British Columbia, October 1, 2018 – Quadron Cannatech Corporation (the “Company” or “Quadron”) – (CSE: QCC), is pleased to report the financial and operating results for its first quarter ended July 31, 2018.
First quarter financial highlights (unaudited):
- Revenue of $968,783, an 87.7% increase over Q1 July 31, 2017 and a 282% increase over Q4 2017;
- Gross margin of $285,530 or 29% vs 26% in Q1 July 31, 2017. Gross margins fluctuate dependent upon product mix;
- Loss of $1,137,597 compared to $416,820 for Q1 July 31, 2017. The increased loss for the quarter includes stock based compensation of $265,129, an increase in development and research of approximately $185,404, and increases in staffing and infrastructure relating to the Company’s further development of its extraction equipment and processes; and
- Cash of $2,981,444 and working capital of $5,075,413 at quarter end.
“We have devoted a significant amount of resources toward the research and development of our automated extraction and processing equipment, in preparation for the legalization of the recreational market and the eventual inclusion of extract derived products,” states Rosy Mondin, CEO. We are very pleased with our revenue growth for the first quarter and are excited about our potential moving ahead and look forward to reporting our Company’s continued successes to our shareholders. Quadron is well positioned to benefit from the significant opportunities across our entire business portfolio, regardless of geography. We are very proud of our developments to date.”
Quadron’s full first quarter financial results are posted on SEDAR at www.sedar.com.
About Quadron: Quadron, provides equipment, products and service solutions for the authorized cannabis industry by providing a full array of end-to-end extraction and processing solutions, including sales of end user delivery options (such as vapor pens) for medical and recreational consumers.
For more information, visit: www.quadroncannatech.com
On behalf of the Board of Directors of
QUADRON CANNATECH CORPORATION
Investor Relations Contact:
KIN Communications Inc.
Caleb Jeffries, VP, Investor Relations
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.