Cannex continues with strong operating performance from its tenant in Washington State, NWCS, while investing for future growth; 4Front combination remains on track for July 31 close
Vancouver, BC, June 28, 2019 – Cannex Capital Holdings Inc. (CSE: CNNX; OTCQB: CNXXF) (“Cannex” or the “Company”) is pleased to report financial results for its fourth quarter of fiscal 2019 (“Q4 2019”) ended April 30, 2019. Owing to the restructuring work being done as part of the planned business combination (the “Transaction”) with 4Front Holdings LLC (“4Front”), Cannex has elected to change its fiscal year end to July 31, and therefore Cannex’s fiscal 2019 will be five fiscal quarters concluding on July 31. All financial amounts are in United States dollars. Cannex’s financial results have been prepared in accordance with International Financial Reporting Standards (“IFRS”).
Management Discussion and Recent Developments
Please refer to Cannex’s “Management’s Discussion and Analysis: 12 Months Ended April 30, 2019” (the “MD&A”) for a comprehensive overview of the period, available at www.sedar.com.
“Cannex is pleased to report continued strong operational performance in Washington state,” said Anthony Dutton, CEO of Cannex. “Washington is a key operating, branding, and product development component for Cannex and is a foundational building block of our long-term strategy. Further to our recent disclosures regarding the business combination with 4Front, Cannex expects to close the Transaction on or before July 31, 2019 and looks forward to leveraging its operational expertise into emerging rapidly growing jurisdictions.”
As the Company reported on April 26, 2019, securityholders of Cannex voted overwhelmingly in favour of the Transaction with 4Front at a special meeting of securityholders held on April 18, 2019. Specifically, the Transaction was approved by 99.97% of Cannex common shares voted at the meeting, 100% of holders of Class A convertible restricted voting shares of Cannex, and 100% of the holders of senior convertible notes of Cannex who voted at the Meeting. In the same news release, the Company also announced that the Canadian Securities Exchange (the “CSE”) has conditionally approved the resulting issuer for listing and allowed Cannex to resume trading.
“I am very happy with my team’s performance and continued growth. I am most impressed with their readiness to take on leadership roles in new markets like Massachusetts and Illinois to replicate the success they’ve helped drive in Washington. We are at a point where we will immediately bring very strong operational capabilities to every new market we have on our plate after the 4Front Transaction closes and, with 4Front’s recent closing of its $50,000,000 real estate funding, we have the capital support to penetrate these new markets with scale,” said Leo Gontmakher, COO of Cannex.
Additionally, in June 2019, Cannex closed the acquisition of San Diego, California-based Pure Ratios Holdings, Inc. (“Pure Ratios”), a wellness product company which develops wellness products that combine cannabinoids with traditional medicine ingredients. Their CBD products are sold nationally, while their THC products are produced under license by licensed cannabis operators in California and other states.