- Fourth consecutive quarter of growth attributed to expanding market share and record sales
- Company also completes amendments to its $39 million senior secured credit facility
TORONTO, Oct. 19, 2021 (GLOBE NEWSWIRE) — Entourage Health Corp. (formerly WeedMD Inc.) (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE) (“Entourage” or the “Company”), a Canadian producer and distributor of award-winning cannabis products and brands, is pleased to announce its preliminary unaudited total revenues of $14.7 million(1) for the three months ended September 30, 2021, representing another quarter of sequential record sales growth across its adult-use and medical sales channels.
The Company plans to file its third quarter 2021 financial statements and management’s discussion and analysis pre-market on Tuesday, November 16, 2021. Entourage will host a conference call at 10 a.m. Eastern Time same day to review the results, provide an operational update and discuss recent milestones.
“Over the past four quarters, we’ve continued to see improved costs, expanded margins, and most critically, continued demand for our products – all of which are contributing to a meaningful gain in market share and a consistent increase in our quarterly sales,” said George Scorsis, Interim CEO and Executive Chair. “Our Q3 preliminary revenue results demonstrate approximately 90% revenue improvement year-over-year as we continue executing our transformation and site optimization initiatives to bring more high-margin products to market. With the previously announced acquisition of craft cultivator CannTx Life Sciences expected to close imminently, we’re thrilled to be introducing “craft” cultivars and products into our distribution network for our medical clients and adult-use consumers – all of which will also bring expanded value for our shareholders.”
Conference Call Details:
The conference call will be hosted by Mr. Scorsis and Entourage’s CFO, Beth Carreon. Management will be available for questions following opening remarks.
|Date:||Tuesday, November 16, 2021|
|Time:||10 a.m. Eastern Time|
|Dial-in Number:||Canada/USA: 1-800-319-4610. International Toll: 1-604-638-5340
Participants, please dial in and ask to join the Entourage call
|Replay Dial-in:||Canada/USA: 1-800-319-6413. International Toll: 1-604-638-9010
Replay Access Code: 7966
Available after 12:00 p.m. Eastern Time, until December 16, 2021
Visit Entourage Health’s newly launched website here. To access our corporate video, visit us here and to access our latest investor presentation and corporate deck here.
Amendment to Credit Facility
The Company also confirmed today is has signed an additional amendment to its senior secured credit facility entered into on March 29, 2019 (the “Credit Facility”). The latest amendments to the Credit Facility modify the terms under which Entourage secured up to $39 million of debt financing over a three-year term ending in 2022.
Under the terms of the amendment, the Company secured a deferral of certain of its financial covenants to December 31, 2021. In addition, the Company has agreed to a 25 basis point increase in the applicable interest rate margin on the Credit Facility, which continues to provide Entourage with non-dilutive, tier-one bank financing and greater financial flexibility in alignment with market conditions. A copy of the conformed Credit Facility agreement will be made available on the Company’s SEDAR page.
About Entourage Health Corp.
Entourage Health Corp. (formerly WeedMD Inc.) is the publicly traded parent company of WeedMD RX Inc. a licence holder producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a 158-acre state-of-the-art greenhouse, outdoor and processing facility located in Strathroy, ON as well as a fully-licensed 26,000 sq. ft. Aylmer, ON processing facility, specializing in cannabis extraction. With the addition of Starseed Medicinal, a medical-centric brand, Entourage has expanded its multi-channeled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements Entourage’s direct sales to medical patients. In July 2021, Entourage signed a definitive agreement to acquire craft cultivator CannTx Life Sciences Inc. which operates out of its state-of-the-art micropropagation and specialty extraction facility in Guelph, Ontario. Upon the expected closing in the fall of 2021, craft brand Royal City Cannabis will be added to Entourage’s elite product portfolio. The Company maintains strategic relationships in the seniors’ market and supply agreements with Shoppers Drug Mart as well as eight provincial distribution agencies where adult-use brands Color Cannabis and Saturday Cannabis are sold. Entourage is also the exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary’s Medicinals sold in both medical and adult-use channels.
For more information, please visit us at www.entouragehealthcorp.com
Follow Entourage and its brands on LinkedIn
Twitter: Entourage, Color Cannabis, Saturday Cannabis & Starseed
Instagram: Entourage, Color Cannabis, Saturday Cannabis & Starseed
For further information, please contact:
For Investor Enquiries:
KCSA Strategic Communications
For Media Enquiries:
SVP, Communications & Corporate Affairs
|(1)||Preliminary and unaudited financial results are subject to customary financial statement procedures by the Company and its auditors. Actual results could be affected by subsequent events or determinations. While the Company believes there is a reasonable basis for these preliminary financial results, the results involve known and unknown risks and uncertainties that may cause actual results to differ materially. These preliminary fiscal results represent forward-looking information. See “Forward Looking Information” and “Financial Outlook”.|
Financial Outlook This news release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of the Company to provide an outlook for the Company’s forecasted revenue for the three months ended September 30, 2021 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading “Forward Looking Information” below. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. The Company and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading “Forward Looking Information” below, it should not be relied on as necessarily indicative of future results.
Forward Looking Information This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon Entourage’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy. The forward-looking information in this news release includes, but is not limited to, statements in respect of the Company’s projected revenue for the three months ended September 30, 2021.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Entourage to implement its business strategies; the COVID-19 pandemic; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Entourage does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Entourage to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Entourage’s disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR at www.sedar.com. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE