Steven Rash, CEO North American Cannabis Holdings, Inc. (USMJ)
I joined the Company at the onset of its entry into the cannabis sector in the fall of 2013. The Company’s mission in the cannabis sector was founded on the core belief that cannabis makes people's lives better - fighting disease, improving wellness and doing so in an environmentally sustainable manner. We launched a subsidiary, the American Seed & Oil Company, to conduct business pilots in the legal cannabis sector - one of which led to the launch of the AmeriCanna Cafe. Today the Company continues to conduct ongoing cannabis sector pilots while continuing to develop the AmeriCanna Cafe.
Increased Revenue and Margin
Two years after our launch into the cannabis sector, I am very pleased with our progress. In the most recent quarterly finical report for the period ending December 31, 2016, the Company reported $137,000 in revenue reflecting a 47% increase over the previous quarter. Gross profit increased 39% quarter to quarter totaling $71,000. Overall income form operations improved 47% quarter to quarter with the Company substantially reducing its burn rate.
Reduced Burn Rate and Improved Investment Terms
The reduced burn rate is I think the most substantial achievement. We are working toward reaching a neutral burn rate as soon as possible. With a neutral burn rate we reduce our dependence on investment to sustain operations and are in a better position to negotiate improved terms on capital investments required to expand operations.
Management anticipates revenue and margin increases to continue and accelerate in the future with the rollout of new retail stores and through the introduction of the recently announced EVERx Sports and Fitness Nutritional Supplements.
$1.5 Million In Legacy Liabilities and More To Come
The quarterly report for the period ended December 31, 2015 includes a number of additional notable growth and sustainability indicators such as the continued reduction of legacy liabilities associated with operations prior to the Company's launch into the cannabis sector. Approximately $500,000 in legacy liabilities were reduced since the last quarter adding to the approximate $1,000,000 in legacy liabilities eliminated from the Company’s balance sheet last year.
Puration (PURA) Strategy and North American Shareholder Dividend
The report also includes important narrative updates, one of which encompasses the latest progress on the upcoming dividend distribution of Puration, Inc. stock to be issued to North American Cannabis Holdings' shareholders. Note the update in this quarterly report indicating the disposition of the controlling stock position in Puration in fulfillment of the agreement entered into between North American and Puration last year. Also note the mention of the convertible preferred stock position which will be the source of Puration common stock to be issued to the shareholders of North American in a dividend distribution. We are working very closely at this time with Puration on a strategic acquisition into Puration. The anticipated plan is to execute the acquisition and time the dividend in conjunction with the acquisition. I look forward to sharing more as the opportunity develops further.
Southwest Cannabis Conference and Expo
I had the opportunity this week end to work with NaturesComfortMeds (NCM), a registered 501(c)(3) not-for-profit organization, at the Southwest Cannabis Conference and Expo held, February 27 and 28th at the Fort Convention Center. We have been working with NCM on a number of pilot projects over the past year. NCM has developed a patented cannabinoid extraction process we believe to be a potential industry game changer. In addition to gathering valuable feedback from our presentations on the pilot projects, we also had the opportunity to compare ourselves to the competition. I feel North American Cannabis Holdings is in a clear industry leadership position.
The SWCC Expo showcased the industries most innovative extracts and products, along with scheduled seminars and presentations by industry business leaders and experts. Montel Williams was the keynote speaker at the SWCC Expo. We took particular interest in the Sports Industry presentation and had the opportunity to meet afterword with the legendary Bears Quarterback, Jim McMahon. Stay tuned.
About North American Cannabis Holdings, Inc.
North American Cannabis Holdings, Inc. (USMJ) is founded on the core belief that cannabis makes people's lives better. Cannabis can fight disease, improve wellness and do so in an environmentally sustainable manner. North American Cannabis Holdings is dedicated to finding the best possible applications for cannabis to serve consumers. For more information please visit http://www.growusmj.com.
Follow the company on Twitter: https://twitter.com/US_HEMP.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.