Ventura Cannabis and Wellness Corp (CSE:VCAN) CEO Chris Heath said Tuesday that the company had built “solid cannabis assets” in California and Oregon during the fiscal year ending February 29, 2020, positioning the company for strong growth.
In a statement accompanying the latest audited numbers, Heath said: “Despite the industry challenges facing us over the past year, our team has developed solid revenue-generating cannabis assets in California and Oregon, as well as a strong balance sheet with no debt.”
He added: “We plan to use our remaining cash to sustain these assets and look for strategic opportunities until the capital market interest returns for our type of assets.”
As of February 2020, the Los Angeles-based company said it had $3.9 million in cash with accounts payables being reduced in the fourth quarter by over $1.7 million, leaving a payable balance at year-end of $2.5 million.
“As we approach the finalization of the disposition of the rehab business, we have seen a significant reduction in our accounts payable, and a resulting drop in cash,” explained Heath. “The COVID-19 pandemic has unfortunately slowed down the divestment process and we expect more payables to be resolved in the current quarter, but thankfully we are close to completion and expect to be able to proceed solely as a cannabis company soon.”
Ventura said it did not anticipate “additional material impacts” from the pandemic.
The company provided some key business strengths:
- In California, Ventura holds a Type 6 manufacturing cannabis license for adult and medical use in the San Francisco Bay Area with an open plan 700-square foot facility
- It holds a state-wide Type 11 distribution cannabis license for adult and medical use and is the majority owner of a delivery only adult-use dispensary license in Sacramento
- It has developed an initial vape brand and has a limited inventory order in place. These California assets have tremendous revenue potential when fully operational
- In Oregon, Ventura has a strong revenue generating, luxury retail dispensary for adult and medical use in a high traffic section of Portland, Oregon
“I am proud of the Ventura team for building out a suite of cannabis assets in a short period of time in a challenging market,” said Heath.
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