TransCanna Clarifies Previous Disclosure
posted on
Nov 01, 2021 07:43PM
Strategically Positioned At The Epicenter of California’s $9 BILLION Cannabis Supply Chain
Vancouver, British Columbia--(Newsfile Corp. - November 1, 2021) - TransCanna Holdings Inc. (TCAN: CSE) (FSE: TH8) (the "Company") announces that as a result of a review of its continuous disclosure record, by staff of the British Columbia Securities Commission (the "BCSC"), the Company is issuing this news release to clarify certain previous disclosure made.
On November 2, 2020, the Company disseminated a news release titled, "TransCanna Provides Corporate Update." In this news release the Company provided the following revenue guidance:
"The Company's internal gross revenue target for the 2020 fiscal year ranges from CAD$12,000,000 up to CAD$14,000,000 (with anticipated net profits from sales of $600,000 up to $700,000). The Company is on track to achieve this benchmark."
The news release also discloses, "…the Company has tremendous confidence it will achieve or exceed its stated 2021 revenue targets" and also states, "With the opening of the Daly facility, associated off-take agreements, high demand for sales, and a strong distribution division, the Company maintains its guidance for a gross revenue target of CAD$55,000,000 to CAD$75,000,000 (with anticipated net profits from sales of $6,600,000 up to $9,000,000) for the fiscal year 2021."
We provide the following clarification on the revenue guidance disclosed in the November 2, 2020 news release, which is hereby withdrawn in its entirety:
While the Company has now reached these significant milestones, they were reached nine months later than planned. The contributing factors to the delays were:
Due to the factors mentioned above, the Company is no longer in a position to achieve the previously stated 2021 gross revenue targets of CAD $55M to CAD $75M. The Company's 2021 fiscal year forecast is now CAD $4.5M, with CAD $2.3M alone coming from the 4th quarter (November 31, 2021), as operations have come online at the new Daly Facility and the Company's distribution business, has been relaunched out of the Daly Facility.
The Company will provide revenue guidance for fiscal 2022 when it is in a position to do so.
About TransCanna
TransCanna Holdings Inc. is a California-based, Canadian-listed company building cannabis-focused brands for the California lifestyle, through its wholly-owned California subsidiaries.
TransCanna's wholly owned subsidiary Lyfted Farms is California's authentic cannabis brand whose pioneering spirit has been continuously providing the finest cannabis flower genetics and cultivation methods since 1984. The Lyfted Farms brand of exclusive cannabis flower is sold at premium retailers throughout the state. With its new cultivation facility in Modesto, California, the company is now poised to become one of the largest and most efficient vertically integrated cannabis companies in the California market.
For updated information with respect to our company, please see our filings on SEDAR at www.sedar.com and on the CSE at www.thecse.com, or visit the Company's website at www.transcanna.com. To contact the Company, please email info@transcanna.com.
On behalf of the Board of Directors
Bob Blink, CEO
Corporate Communications:
info@transcanna.com
604-200-8853
FORWARD-LOOKING INFORMATION:
Certain information in this release may contain forward-looking statements, including statements previously made in the referenced news release, expected 2021 financial results and future successes of our business development strategies and future opportunities. Forward-looking statements include, but are not limited to, statements concerning management's guidance on sales and other statements which are not historical facts. When used in this document, the words such as "could", "plan" "estimate", "expect", "intend", "may", "potential", "should" and similar expressions indicate forward-looking statements.
Although TransCanna believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date that the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in forward-looking statements.
Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur. Although TransCanna believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the referenced MD&As include, but are not limited to, unexpected increases in operating costs, a continued strain on farmers due to fires, the impact of the continuing COVID-19 pandemic, competition from other retailers changes in exchange rate between the Canadian Dollar and other currencies, the impact of global supply chain delays and the retention of key staff.
This cautionary statement expressly qualifies the forward-looking statements contained in this press release and the referenced MD&As. TransCanna undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by law.
Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which filings are available at www.sedar.com.
Neither the Canadian Securities Exchange ("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.