Vancouver, British Columbia–(Newsfile Corp. – October 29, 2019) – The Yield Growth Corp. (CSE: BOSS) (OTC: BOSQF) (FSE: YG3) on a consolidated basis (the “Company”, “us”, “we”) has released financial and operational results for the third quarter ended August 31, 2019. These filings are available for review on the Company’s SEDAR profile at www.sedar.com.
We have achieved record quarterly revenue in the third quarter of 2019. Revenue increased by 61% to $1.9 million in Q3 2019 compared to $1.2 million in Q2 2019, and increased by 355% compared to $0.4 million in Q3 2018.
Beginning in Q2 2018, we have achieved steady growth in revenues over the past 6 quarters to date, as set out in the chart below:
Net losses decreased by 55% to $1.9 million in Q3 2019 compared to $4.1 million in Q2 2019, and decreased by 50% compared to $3.7 million in Q3 2018.
We also made significant progress in building up our assets and are well positioned for future growth. Total assets increased by 149% to $6.5 million from $2.6 million at 2018 year-end. Net assets increased by 250% to $4.7 million from $1.3 million at 2018 year-end. Working capital increased by 91% to $3.4 million from $1.8 million at 2018 year-end.
We have no commercial debt, no short-term loans, no long-term loans and no convertible debentures.
Apart from record financial results, we also accomplished a few strategic milestones in business and operations including:
● We attained Oregon Liquor Control Commission (OLCC) final approval for 9 Wright & Well™ products, allowing our products to be sold through cannabis retailers in Oregon of the United States;
● We obtained Compliance Certificates for registration in the European Union for various Urban Juve™ products, allowing our products to be sold and distributed in the European market, in addition to Canada and US;
● We expanded market reach by entering into multiple license and distribution agreements for our products to be distributed worldwide, including Canada, US, Greece, Cyprus, Brazil and Colombia;
● We enhanced our marketing strategy to boost brand awareness, including our products being featured on Leafly, one of the largest cannabis websites in the world, and in high-profile magazines, British Vogue, Vanity Fair UK, and Elle Canada;
● We increased our market presence by having products available for sale on Shopper, an exclusive ecommerce marketplace by IPSY, beauty box subscription giant;
● We progressed with the development of our product line expansion through the completion of stability and preservative challenge tests for 9 new hemp products;
● We expanded our product distribution network and expect to deliver next quarter approximately $150,000 of Urban Juve™ products to a US company and $100,000 of Urban Juve™ products for distribution in Greece; and
● We have built up momentum in launching a few brands and commercializing our branded products as illustrated below:
Figure 2: Brand Milestones Q1, 2019-Q1, 2020
The following is a summary of our Q3 2019 results:
|August 31, 2019||November 30, 2018|
|Three months ended August 31,||Nine months ended August 31,|
|Net Loss for the period||$||(1,869,647||)||$||(3,737,120||)||$||(9,805,599||)||$||(7,189,137||)|
About The Yield Growth Corp.
The Yield Growth Corp. is building and operating hemp, cannabis and edible mushroom assets in what the Global Wellness Institute reports is a $4.2 trillion-dollar global wellness market. It owns the cannabis wellness brands Urban Juve, Wright & Well and Jack n Jane. The Yield Growth management team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M·A·C Cosmetics, Skechers, Best Buy and Aritzia. Its all natural hemp skin care brand, Urban Juve, has signed distribution agreements in Canada, Columbia, Brazil, Greece and Cypress and through its distributor network has access to over 8,000 retail locations. Urban Juve has been featured in UK Vogue, Vanity Fair UK and Elle Canada and has an alliance with leading online beauty community, ipsy. Yield Growth’s Wright & Well brands are launching a THC/CBD line of topical products in Oregon and a CBD from hemp topicals line in California this fall. Jack n Jane is launching cannabis products in Canada in 2019. Yield Growth is launching a line of edible mushroom wellness products in 2020.
Through its subsidiaries, Yield Growth has over 200 proprietary beauty, wellness, edibles and beverage formulas for commercialization. It had filed 12 patents to protect its extraction method and formulas. Yield Growth is in revenue through multiple streams including licensing, services and product sales.
Investor Relations Contacts:
Penny White, President & CEO
Kristina Pillon, Investor Relations
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking information and statements (collectively, “forward looking statements”) under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates, forecasts, beliefs and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, but are not limited to: risks related to the development, testing, licensing, intellectual property protection, and sale of, and demand for, Urban Juve, Wright & Well, Jack n Jane and UJ Topicals products, general business, economic, competitive, political and social uncertainties, delay or failure to receive board or regulatory approvals where applicable, and the state of the capital markets. Yield Growth cautions readers not to place undue reliance on forward-looking statements provided by Yield Growth, as such forward-looking statements are not a guarantee of future results or performance and actual results may differ materially. The forward-looking statements contained in this press release are made as of the date of this press release, and Yield Growth expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.