First quarter financial highlights (unaudited):
- Revenue of $516,211, a 131% increase over Q1 July 31, 2016 and a 243% increase over Q4 2016;
- Gross margin of $135,995 or 26% vs 59% in Q1 2016 and 40% in Q4 2016. Gross margins will fluctuate dependent upon product mix;
- Loss of $416,820 compared to $19,851 for Q1 ended July 31, 2016. The increase loss for the quarter includes stock based compensation of $73,346, an increase in marketing cost of approximately $50,000 and increases in staffing and infrastructure relating to the Company’s release of The BOSS CO2 extraction machine; and
- Cash of $587,223 and working capital of $1,565,578 at quarter end.
Subsequent Period Highlights:
- Launched a proprietary, automated, next generation CO2 Extraction System – “The BOSS”. The BOSS combines proprietary max flow CO2 innovation with advanced thermodynamics, automated features and an exclusive plug and play design.
- Entered U.S. Market through Development and Distribution Agreement with Washington based Lucid Labs LLC. In addition to co-developing four new processing systems for commercial release to the North American cannabis industry, Lucid Labs will also start selling, Quadron’s current suite of equipment/products.
- Quadron’s subsidiary, Cybernetic Control Systems Inc., secured two software automation and control panel contracts for two rides for a major U.S. entertainment theme park operator.
- Cybernetic chosen to be a technical distributor and integrator for Schneider Electric, a global specialist in energy management and automation.
Rosy Mondin, President and CEO of Quadron reported, “We continue to grow our revenue, expand our product mix and customer base. We are positioning the Company to be a leader in the botanical extraction business, and with the recent launch of our new proprietary CO2 extraction system, The BOSS, we expect to see further increases in revenue and margins.”
Quadron’s full first quarter financial results are posted on SEDAR at www.sedar.com.
About Quadron Cannatech
Quadron focuses on authorized cannabis automated and extraction processing and sales of end user delivery solutions such as vape pens, capsules and other safer consumption solutions for patients.
On behalf of the Board of Directors of
QUADRON CANNATECH CORPORATION
Investor Relations Contact:
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Statements included in this announcement, including statements concerning our plans,intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as “forward-looking statements”. Forward-looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.