Radient Technologies Inc. Releases First Quarter 2020 Financial Results and Provides Corporate Update
28 August 2019 - 6:30AM
Radient Technologies Inc. (“Radient” or the
“Company”) (
TSX Venture: RTI; OTCQX: RDDTF), a
global innovator in the industrial scale extraction and downstream
processing of premium grade cannabis and hemp derivatives, has
released its financial results for the first quarter of its fiscal
year 2020, ending June 30, 2019. The financial statements and
Management’s Discussion & Analysis are available under the
Company’s profile at www.SEDAR.com.
Financial Highlights:
Strong cash position:
- As at June 30th, 2019 the Company had maintained a cash
position of CAD $23.5 million.
Large inventory for increased future
revenue generation:
- As part of the Company’s business model, which will allow it to
benefit from advantages related to cost, scale, and yield provided
by its proprietary extraction and processing platform, Radient has
secured a large inventory of cannabis biomass (valued at CAD $21.7
million), which will be processed at its Edmonton I manufacturing
facility into extracts for sale to Canadian Licensed Producers.
This inventory is mainly the result of Radient’s purchase of CAD
$19.5 million worth of dried cannabis biomass from Canadian
Licensed Producers, including Aurora Cannabis Inc. (“Aurora”),
which the Company initially announced on July 8, 2019.
- Radient has secured buyers for the majority of these extracts.
Revenues earned from the sale of these extracts are expected to be
in excess of the value of the current total inventory of dried
cannabis biomass (CAD $21.7 million), and the Company expects this
will have a meaningful positive impact on its earnings reported
across fiscal Q2 2020 and/or fiscal Q3 2020. Due to various supply
chain factors including shipment of biomass, product analysis and
delivery of final product, the Company expects the majority of this
revenue will be reported in fiscal Q3 2020.
Corporate Update:
Successful scale up of throughput at
Edmonton I facility:
- Since the commencement of extraction and processing activities
at its Edmonton I facility (“Edmonton I”) in March 2019, Radient
has begun to significantly scale up throughput batch sizes of
cannabis biomass by multiples of 5x - 10x, in line with the
Company’s expectations. Edmonton I has a throughput capacity of
56,0000 kg/ year of cannabis at full capacity.
Recovery and quality of cannabinoids has
exceeded expectations:
- Radient is pleased to report results from the scale-up at
Edmonton I have proven:
- Cannabinoid recovery (yield) from biomass is consistently above
90%, and up to 99%.
- Cannabis extracts have maintained product stability, including
negligible cannabinoid degradation.
Hemp processing line on track for
completion:
- Radient’s Edmonton II Facility (“Edmonton II”), dedicated to
the extraction and downstream processing of CBD from hemp, is on
track for completion at the end of calendar 2019. Upon completion,
Edmonton II is expected to have an annual throughput capacity of
420,000 kg/ year of hemp.
Expansion into Germany:
- Radient’s Germany facility (‘Germany”) is expected to begin
initial commissioning in the second half of calendar 2020, scaling
up to its full capacity of 280,000 kg of cannabis and 2.8 million
kg/ year of hemp thereafter. Please refer to the subsection titled
“Germany” under "Cannabis Activities” in the MD&A for further
details.
Expanded throughput capacity in
Canada:
- Radient’s Edmonton III facility (“Edmonton III”), currently
under construction, is expected to be commissioned in the second
half of calendar 2020, scaling up to its full capacity of 280,000
kg of cannabis and 2.8 million kg/ year of hemp thereafter.
- Upon completion of its Edmonton II, Edmonton III and Germany
facilities, Radient will have a combined total annual throughput
capacity of more than 600,000 kg/year of cannabis and more than 6
million kg/ year of hemp across Canada and Germany.
EU GMP compliance:
- Radient is building both its Edmonton III and Germany
facilities to be EU GMP compliant.
Post-Reporting:
Improved working capital via Amended
Loan Facility Agreement:
- The Company announced the amendment of its original loan
facility with Moskowitz Capital Mortgage Fund on August 26, 2019,
which increased the amount of the loan from CAD $5.5 million to
$8.5 million, and extended the maturity date of the loan from
November 1, 2020 to November 1, 2021.
Consumer product
manufacturing:
- In anticipation of upcoming changes to the Cannabis Act, which
will make the production and sale of edible cannabis, cannabis
extracts and cannabis topicals legal in Canada as of October 2019,
Radient has been developing a range of compounds and formulations
to meet anticipated demand of its clients. In particular, Radient
has been focusing on formulation development for various vaping
products, edible cannabis products, cannabis extracts and cannabis
topicals that its clients will be introducing into the Canadian
marketplace. The Company has developed vaping liquid formulations
for commercialization and is preparing its manufacturing operations
for the production of vaping liquids and cartridge filling, and
expects the production of vaping liquid will begin in fiscal Q3
2020.
Management Commentary:
“This is a key inflection point for Radient,”
Denis Taschuk, President & CEO of Radient commented. “During
fiscal Q1 2020 we proved our processing and manufacturing
capabilities with respect to cannabis, and subsequently acquired a
large inventory of cannabis biomass in order to develop white label
cannabinoid derivatives for sale to Canadian LPs. We see this as a
significant turning point for Radient as a revenue generating
company, and we expect this will be clearly reflected in our Q2
2020 and/ or Q3 2020 financials.”
About Radient Radient
Technologies provides industrial-scale manufacturing solutions for
premium natural ingredients and products. Utilizing its patented
MAP™ extraction technology, Radient delivers superior customer
outcomes in terms of ingredient purity, yield, and cost, serving
global market leaders in industries such as foods & beverages,
nutraceuticals, pharmaceuticals, cosmetics, and personal care.
Since 2016, Radient has expanded its offerings to enter the
cannabinoids market, using its proprietary platform to provide
premium ingredients including those that contain a broad range of
cannabinoid and terpene profiles. Please visit www.radientinc.com
for more information.
SOURCE: Radient Technologies Inc.
Investors please contact: William (Bill) Wasson, Senior VP of
Capital Markets and Investor Relations: wwasson@radientinc.com
Media/press please contact: Caitlin Cheadle, Director of
Communications: ccheadle@radientinc.com
Forward Looking Information: This press release
contains “forward-looking information” within the meaning of
applicable Canadian securities legislation. Forward-looking
information includes, without limitation, statements regarding the
growth of the Company’s business operations; the construction of
the Company’s facilities; the Company’s future revenues and timing
of such revenues; the Company’s future products; the Company’s
ability to sell its products and attract new customers; the
expected throughput capacities at its facilities as set out in the
“Corporate Update” section above; the future recovery and
quality of the Company’s extracts; the Company’s ability to expand
its business internationally; the Company’s ability to grow its
business in the cannabis sector and the Company’s future plans.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as “plans”, “expects” or “does
not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will be taken”, “occur” or “be achieved”. Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of Radient, as the case may
be, to be materially different from those expressed or implied by
such forward-looking information. Although Radient has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause 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. Accordingly, readers should not place undue
reliance on forward-looking information. Radient does not undertake
to update any forward-looking information, except in accordance
with applicable securities laws.
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REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
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THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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