Maricann Files Third Quarter Financial Results, Updates Ongoing German License Progress and Distribution Efforts
TORONTO, Ontario, November 30, 2017 —Maricann Group Inc. (CSE:MARI, OTCQB: MRRCF, Frankfurt: 75M “Maricann” or the “Company”) filed its financial statements for the 3 months ending September 30, 2017, with results that were consistent with our expectations. Revenue is expected to increase in the first quarter of 2018 when the Company’s joint pharmacy initiative is expected to launch. Product distribution for this initiative will occur through previously announced exclusive and primary supplier relationships with retail pharmacies (see press releases dated November 6, 2017 and November 13, 2017). Inventory has been reserved for this initiative to ensure patient supply. Maricann will supply medicinal cannabis products directly to pharmacy patients, following their receipt of a prescription from a physician and expert education by patients' local pharmacists. Further inventory has been reserved for export to European markets that the Company expects to be permitted following a successful Good Manufacturing Practice (GMP) certification of the Company’s Langton, Ontario operations. Inspection by European authorities for the designation is anticipated to be complete by mid-December 2017 with the results to be provided shortly thereafter.
Germany – Continued Progress
Tender Bid Submission
Maricann’s joint venture partner has submitted bid documents for the German government's tender process for regulated cannabis, following qualification in the first round of such process as one of 10 successful applicants to move forward (of 118 applicants in total). The tender process has been delayed multiple times due to ongoing legal proceedings related to unsuccessful submissions by other applicants in the initial qualifying round. A further delay in the tender process may occur due to ongoing legal proceedings, however, a final decision may be forthcoming as early as March of 2018.
Export to Germany
Maricann’s Canadian facilities will undergo inspection for GMP Certification in December 2017 as referenced above. This certification, if received, will permit Maricann to export dry cannabis flower to Germany and other markets. It is expected that Maricann will be permitted to export cannabis products to Germany in the first quarter of 2018, subject to receipt of the required approvals.
Narcotics and Wholesale Licence
Maricann GmbH has applied for a narcotics licence and wholesale narcotics licence in Germany. If received, these licenses will allow Maricann to import its own cannabis products directly from Canada and distribute them to pharmaceutical distributors and pharmacies directly, helping to preserve the Company's profit margin. This import and wholesale activity is separate and distinct from the tender process referenced above. Key personnel have been hired, including Dr. Thomas Klumpp PhD Pharmacy, as Qualified Person. Dr. Klumpp’s previous experience as Head of Production Supply at Bayer (Bitterfeld) and Manager of CC Production in Africa, Asia, Australia for Bayer Corp. (Leverkusen) has positioned Dr. Klumpp as an expert in all areas of Good Manufacturing Practices in Pharmaceutical Production as he is an expert pharmacist and specialist in pharmaceutical technology.
Maricann forms Registered Agricultural Subsidiary for CBD Production
and Distribution in Europe
MariPlant GmbH has been registered as a 95% owned subsidiary in Germany. MariPlant has registered formally as a “Landwirtschaftliches Unternehmen” (Agricultural Company), with 5% owned by General Manager of Maricann GmbH, Josef Spaeth, a registered “Landwirtschaft” (Farmer). MariPlant will cultivate approved industrial hemp cultivars and extract CBD to be used in its “Mariplant” products. It is expected that these CBD products will be distributed through MariPlant's own online shop in Europe, starting in February of 2018 and it is further anticipated that MariPlant will distribute 25mg CBD metered dose softgel capsules with VesiSorb delivery technology as its first product offering.
Maricann, which has federal licenses in Canada to cultivate, extract, formulate and distribute cannabis, is rapidly expanding its Canadian production, based in Norfolk County, Ontario, adding 22,245 kg of annual production of dry flower to come online in Q2 2018, with additional production planned. Maricann is focused on expanding capacity in a truly differentiated product offering, in support of its previously announced joint pharmacy initiative and future global export opportunities.
For more information about Maricann, please visit our website at www.maricann.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR OTC MARKETS GROUP INC., NOR THEIR REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward Looking Information
Certain statements in this document contain forward-looking statements which can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “desires”, “will”, “should”, “projects”, “estimates”, “contemplates”, “anticipates”, “intends”, or any negative such as “does not believe” or other variations thereof or comparable terminology. No assurance can be given that potential future results or circumstances described in the forward-looking statements will be achieved or will occur. By their nature, these forward-looking statements, necessarily involve risks and uncertainties, including those discussed herein, that could cause actual results to significantly differ from those contemplated by these forward-looking statements. Such statements reflect the view of the Company with respect to future events, and are based on information currently available to the Company and on assumptions, which it considers reasonable. The forward looking statements in this release include statements regarding the planned increase in annual production and the implementation, the anticipated increase in revenue in the first quarter of 2018, the launch of the Company's joint pharmacy initiative, the export to European markets and a successful Good Manufacturing Practice (GMP) certification of the Company’s Langton, Ontario operations, the timing of the German tender bid process, the timing and ability to export to the German market from Canada and the rollout of MariPlant's product offerings. Management cautions readers that the assumptions relative to the future events, several of which are beyond Management’s control, could prove to be incorrect, given that they are subject to certain risk and uncertainties, and that actual results may differ materially from those projected. Factors which could cause results or events to differ from current expectations include, among other things: fluctuations in operating results; the impact of general economic, industry and market conditions; the ability to recruit and retain qualified employees; fluctuations in cash flow; failure to obtain required financing; increased levels of outstanding debt and obligations under a capital lease; expectations regarding market demand for particular products and the dependence on new product development; the impact of market change; and the impact of price and product competition. Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The reader is cautioned not to place undue reliance on forward-looking information.
Corporate Headquarters (Canada)
Maricann Group Inc. (Toronto)
845 Harrington Court, Unit 3
Burlington Ontario L7N 3P3