TORONTO, ONTARIO--(Marketwired - Nov. 18, 2015) - Golden Leaf Holdings Ltd. (CSE:GLH) ("GLH") announces preliminary 3rd quarter revenue and corporate update.
- Calendar 3rd quarter revenue is estimated to be approximately US$3 million, representing year on year growth of 900%.
- The Company's first proprietary flower harvest in October exceeded expectations: yields appear to be in excess of 2 pounds of high grade flower per plant and should result in at least US$1 million of additional sales in the 4th quarter.
- Extraction yields continue to show dramatic improvement resulting in approximately a 14% yield in the first weeks of November in comparison with 8.1% in the 3rd quarter in 2015 and 9.3% on average year to date. This is due to additional improved extraction equipment coming online and the use of in-house grown high quality trim.
Increased Production Capacity and Yields
The Company entered the 4th quarter with 7 extraction machines in comparison with 1 machine in operation a year earlier. Two more have been delivered and four more are on order. Each machine has a daily capacity of 1 pound of oil extract.
Yields on trim conversion were at their lowest during the month of September 2015 at 8.2%, which is normal immediately prior to harvest season. Yields improved in October to 9.9%. Since then yields have improved significantly with the use of the Company's own in-house grown trim and after several months of testing the new extraction machines. Yields for the first half of November are in excess of 14%, the highest level since we started operations.
The Company has invested approximately US$500,000 in its 96 acre Aurora campus up to October 31st, which has enabled it to become more self-sufficient and produce consistently higher yields. The Company had its first harvest at Aurora of 370 plants in October 2015. Each plant yielded more than 2 pounds of flower and 2 pounds of trim which is now contributing to sales growth. It is anticipated that once the Company is fully self-sufficient through in-house growing, yields will be consistently high year round removing the quality issues traditionally associated with the harvest cycle.
3rd quarter revenues are estimated to be approximately US$3 million, representing year on year growth of 900%.
Don Robinson, the CEO of GLH, commented, "Demand for our products remains very strong. We have increased our direct sales force to 10 professionals and consolidated our leading position within the Oregon medical market. All of our stock on hand continues to sell quickly. Despite the 8 to 1 scaling in production capacity, demand for our product continues to outstrip capacity. We expect this dynamic to continue having substantially increased our sales force."
The Company continues to look for accretive acquisition opportunities and commercial relationships.
Robinson added, "We have started due diligence on acquisitions in Washington State. The market for oil extract products in Washington is double the size of Oregon. Washington allows oil extract products and edibles to be sold recreationally."
The Dixie transaction announced earlier this month will give the Company proven technology, expertise and Colorado's top edible brand to launch in the Oregon market. Independent research forecasts the total market in Oregon to be worth US$ 600 million in sales per annum, including US$450 million of recreational sales.
The full financial statements for the 3rd quarter of 2015 will be released by the Company November 29, 2015.
About Golden Leaf Holdings:
Golden Leaf Holdings is one of the largest cannabis oil and solution providers in North America. It is a leading cannabis products company in Oregon built around recognized brands providing medical users with a superior value and experience. GLH leverages a strong management team and advanced research techniques, including R&D with its Israeli subsidiary Green Point Science Ltd. to compliment its expertise in growing, extracting, refining and selling cannabis oil. As an industry leader committed to transparency and controls, GLH is dedicated to partnering with industries, communities and regulators.
Disclaimer: This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Corporation's future business operation, expectations of gross sales, the opinions or beliefs of management, and future business goals. 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 the Corporation to be materially different from those expressed or implied by such forward-looking information, including but not limited to general business, economic and competitive uncertainties, regulatory risks, market risks, risks inherent in manufacturing operations, risks relating to the receipt of additional extraction machines, and other risks of the cannabis industry. Although the Corporation 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. Forward-looking information is provided herein for the purpose of presenting information about management's current expectations relating to the future and readers are cautioned that such information may not be appropriate for other purpose. The Corporation does not undertake to update any forward-looking information, except in accordance with applicable securities laws.