Calgary, Alberta--(Newsfile Corp. - March 18, 2021) - Discover Wellness Solutions Inc. (formerly RMMI Corp.) (CSE: WLNS) ("Discover Wellness" or the "Company"), a licensed producer and processor under the Cannabis Act (Canada), announces the filing of its financial results for the twelve-month period ending December 31, 2020. For more information, please see the consolidated financial statements of the Company for the year ended December 31, 2020 and the related management's discussion and analysis, which are available electronically on SEDAR under Discover Wellness' issuer profile at www.sedar.com.
"The year 2020 was a transformational year for the Company in-terms of a shift away from capital intensive cultivation business model to a flat structure extraction and processing facility. Additionally, we recapitalised, are being prudent with our cash outlay, completed a transaction with SynerGenetics Bioscience Inc. ("SG") on the procurement side and signed an MOU with Quad Play of Thailand on the global distribution side," commented Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer.
Highlights - Fiscal Year Ended December 31, 2020
- In June 2020 the Company made a strategic shift towards hemp and production of high quality and high purity CBD products. Essentially, the Company undertook a strategic shift in its business model away from capital intensive cannabis cultivation to focus on processing and extraction of hemp biomass into CBD concentrates.
- In October 2020, the Company entered into strategic alliance and hemp purchase agreement with SG, a leading plant genetics technology company that develops novel hemp strains with high-CBD content and other hemp-derived cannabinoid cultivars.
- In December 2020, the Company closed a $2.7 Million Private Placement at $0.20/ share to progress the buildout of the expansion area in the Company's 23,400 square foot extraction and processing facility and for general corporate and working capital purposes.
- Near the end of the year SG delivered 550,000 lbs of hemp which resulted in working capital savings of over $5MM.
- The shareholders approved the name change to Discover Wellness Solutions Inc. to better reflect the Company's focus on the non psychoactive space.
Subsequent events
In February 2021 the Company received a license to sell Industrial Hemp which significantly reduces regulatory overheads and fits well with the cost leadership strategy.
In March 2021, signed an MOU with Quad Play to enter Thailand's deregulating hemp extract market. This business relationship serves as a beachhead for Discover Wellness to gain access to the Asian hemp-infused market which is expected to grow to over $5.8 billion by 2024.
Discover Wellness' initial contribution secures a toehold equity stake of 4% in Quad Play with the option to acquire control of QP once regulations in Thailand allows for control by foreign companies.
Other updates
Discover Wellness has granted 100,000 stock options with an exercise price of $0.49 and 50,000 Restricted Share Units to a Company director.
The Board of Directors has extended the expiry date of 1,874,000 warrants with an exercise price of $1.25, issued in late 2017 and early 2018. The expiry date of the warrants has been extended from June 30, 2021 to June 30, 2022. The exercise price of $1.25 per warrant and all other terms of the warrants will remain unchanged for the extended exercise period. No action is required by warrant holders as a result of the extension of the warrant expiry date. A warrant holder who wishes to exercise warrants will be required to submit a warrant exercise form to the Company.
Discover Wellness Solutions Inc.
Discover Wellness (formerly RMMI Corp.) is a Canadian company licensed, through its subsidiary, to cultivate, produce, process and sell cannabis in various forms. The Company's vision is to enhance shareholder value by establishing cost leadership in hemp processing and CBD extraction coupled with a global distribution strategy.
More information about WLNS is available online at https://discoverwellness.solutions/
Contact Information:
Manish Grigo, Chief Strategy Officer
mgrigo@discoverwellnesssolutions.ca
416-569-3292
Peter Cheung, Interim Chief Executive Officer and Chief Financial Officer
ir@discoverwellnesssolutions.ca
403-910-9191
Terry Uppal, Investor Relations
+1-888-228-5128
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"). By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, operational risks, competition from other industry participants, stock market volatility, and the ability to access sufficient capital from internal and external sources. Although the Company believes that the expectations in its forward-looking statements are reasonable, its forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. Risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our public disclosure documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Trading in the securities of WLNS should be considered highly speculative.
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