VANCOUVER, BC / ACCESSWIRE / July 8, 2020 / Mota Ventures Corp. (CSE:MOTA)(FSE:1WZ1)(OTC PINK:PEMTF) (the "Company") is pleased to announce its financial results for the first quarter ending March 31, 2020. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. The press release is intended to be read in conjunction with the Company's unaudited Condensed Interim Consolidated Financial Statements and Management Discussion & Analysis for the three months ended March 31, 2020, which are filed under the Company's profile on SEDAR (www.sedar.com), and also available on the Company's website.
First Quarter 2020 Key Highlights include:
- The Company acquired online cannabidiol (CBD) product distributor Nature's Exclusive from Unified Funding, LLC.
- Agreement finalized with Sativida OU (Estonia) and Sativida OU's subsidiary, VIDA BCN LABS S.L (collectively, "Sativida") to acquire Sativida in stages.
- The Company acquired the intellectual property and trade names of Sativida in Spain, which will be licensed back in exchange for a royalty associated with gross revenues generated by Sativida.
- The Company entered into a Licensing and Royalty Agreement with Phenome One Corporation ("Phenome") for the right to cultivate, harvest, process and sell a selection of cultivars from Phenome's genetic library, and the Company was granted unlimited access to a Phenome's proprietary nutrient intellectual property (IP) and catalogue.
- The Company entered into a Joint Venture with BevCanna Enterprises Inc ("BevCanna") to distribute BevCanna branded beverage products infused with hemp-derived CBD in the European market.
- Consolidated Q1 2020 gross revenue was $7.65 million, with cost of goods sold of $7.05 million, resulting in gross profits of $605,150. Operating and other operating expenses for the three months ended March 31, 2020 were $5.24 million.
- The Company raised $1.72 million through share subscriptions received for the issuance of units at $0.28 and received $309,000 in proceeds from the exercise of warrants.
- The Company ended Q1 2020 with $2.1 million in cash.
Management Commentary
"In the midst of evolving challenges resulting from the global novel coronavirus outbreak, the Company realigned priorities to include focus on the health and safety of our employees, customers and suppliers. The way our team adapted and performed was exceptional. I am also pleased to announce that, despite the unprecedented uncertainties resulting from the coronavirus, our operations and supply chains performed without interruption, and the Company achieved targets in line with expectations. In order to capitalize on the global market, we recognize the need to be flexible and proactive in addressing market trends. For the second quarter our objectives are to yield increased revenues and higher gross margins. Due to the initial cost of customer acquisition, transitioning more customers into our monthly subscription will significantly increase margins." stated Ryan Hoggan CEO of the Company.
About Mota Ventures Corp.
Mota Ventures is an established natural health products and eCommerce technology company focusing on the CBD and psychedelic medicine sectors. The company has a strong presence in both North America and Europe. In the United States, Mota Ventures offers a CBD hemp-oil product line derived from hemp grown and formulated in the US through its Nature's Exclusive brand. Within Europe, the company's Verrian operations is currently conducting clinical studies utilizing proprietary products for the treatment of opiate addiction. The highly skilled Verrian team also manages Mota Ventures' 110,000 square foot manufacturing facility in Radebeul, Germany. In addition, Mota Ventures' Sativida brand of award winning 100% organic CBD oils and cosmetics are sold throughout Spain, Portugal, Austria, Germany, France, and the United Kingdom. The company is also seeking to acquire additional revenue-producing natural health product brands and operations in both Europe and North America with the goal of establishing an international distribution network utilizing its eCommerce technology platform.
ON BEHALF OF THE BOARD OF DIRECTORS
MOTA VENTURES CORP.
Ryan Hoggan
Chief Executive Officer
For further information, readers are encouraged to contact Joel Shacker, President at +604.423.4733 or by email at IR@motaventuresco.com or www.motaventuresco.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statement
All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws, including with respect to the Company's goals of yielding increased revenues and higher gross margins, capitalizing on the global market, and its plans to acquire revenue-producing CBD brands and operations in Europe and North America. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company's public filings under the Company's SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
SOURCE: Mota Ventures Corp.
View source version on accesswire.com:
https://www.accesswire.com/596676/Mota-Ventures-Reports-765m-Revenue-in-Q1-2020
