~ 770% increase in revenue from previous period
VANCOUVER, September 1, 2021 – World-Class Extractions Inc. (CSE: PUMP) (FRA:WCF) (OTCQB:WCEXF) (the “Company” or “World-Class”), is pleased to report the operating and financial results for its year ended April 30, 2021.
- Revenue of $9,642,757 for the year ended April 30, 2021 compared to revenue of $1,108,2921 for the year ended April 30, 2020, an increase of 770%. Gross margin for the year ended April 30, 2021 was 29% compared to 47% for the year ended April 30, 2020. The changes in revenue and gross margin relate primarily to the acquisition of PED in Q4 2020.
- General and administrative expenses for the year ended April 30, 2021 were $5,487,467 compared to $9,293,522 for the year ended April 30, 2020, a decrease of 40%.
- The Company had cash as at April 30, 2021 of $2,377,635 (April 30, 2020 – $5,632,160) and current assets of $4,615,345 (April 30, 2020 – $8,503,914) to settle current liabilities of $5,027,537 (April 30, 2020 – $5,493,417). $2,889,199 of the current liabilities relate to convertible debt of $2,255,249 and resulting derivative liability of $633,950 assumed pursuant to the PED acquisition.
- The net loss and comprehensive loss for the year ended April 30, 2021 was $4,486,318 (as compared to April 30, 2020 of $48,539,965). The difference can be attributed to a number of impairments and write-downs the Company recognized in the year ended April 30, 2020.
Rosy Mondin, CEO of World-Class stated: “The acquisition of a controlling interest in Pineapple Express Delivery in March of 2020 has been extremely timely for World-Class. The Company has seen a 770% increase in its revenues from prior periods primarily because of this acquisition. We expect PED to continue to expand its operational capacity, and by maximizing on PED’s capabilities, the Company has been able to capitalize on its successes. PED plays an important role in the continued growth of the Canadian cannabis industry; we are very excited moving forward this year as more business opportunities open up with the licensing of PED’s delivery technology, as well as applying for significant upcoming delivery contracts.”
Ms. Mondin continued, “Management remains hyper-focused and strategically positioning WCE to capitalize on the opportunities ahead in the pursuit of shareholder value. World-Class continues to be focused on lowering expenditures and improving operating efficiency as the Company continues to grow and align with the changing realities of the cannabis industry.”
World-Class is an innovation-driven company with a focus on the evolving cannabis and hemp industries. World-Class offers compliant and secure delivery of government regulated products through its subsidiary Pineapple Express Delivery Inc., including medical and recreational cannabis in Ontario, Manitoba and Saskatchewan, and liquor delivery in certain jurisdictions in Saskatchewan. World-Class continues to investigate opportunities to deploy and manage custom-built extraction centres utilizing its custom systems, technology, and processes to efficiently produce high-quality cannabis and hemp concentrates and end-products.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Cautionary Note Regarding Forward-Looking Statements
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to the Company within the meaning of applicable securities laws. The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited those identified and reported in the Company’s public filings under the Company’s SEDAR profile at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or 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. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.