Cannapharmarx Inc (OTCMKTS:CPMD) reported a net loss in Q1 2020. A higher net loss of $4.24 million in this quarter compared to Q1 2019 is because of expenses related to acquisitions. The company has not posted any revenues in Q1 2020.
Cannapharmarx focuses on three projects comprising the Great Northern Project, the Hanover Project, and additional takeovers. It targets cannabis entry and continuously acquiring an ownership stake in GN Ventures Ltd (GNVL).
GNVL holds a cannabis cultivation facility on 60,000 Sq. Ft. area. It also owns a grow facility located on Stevensville, Ontario based 38 acres property. GNVL can manufacture 12,500 kg of cannabis.
The Canadian Ministry of Health granted a cultivation license to GNVL on July 5, 2019. GNVL commenced cultivation in October 2019 and expects first the harvest in Q1 2020. It will also develop adjacent land to boost production capacity.
As part of the Hanover Project (Alternative Medical Solutions) takeover, Cannapharmarx will also grow cannabis on 48,750 Sq. Ft area based in Hanover, Ontario. The exterior of the building is completed and expects to begin interior construction. Annually, the company expects to harvest 9,500 kg of cannabis from this facility.
Cannapharmarx will explore several development projects and takeover opportunities that exist in genetics and cultivation. CEO, Nick Colvin said the company is entering the phase of realizing revenues. It is slowly gaining ground to establish leadership in the cannabis extraction/ production industry.
Sunniva terminates subsidiary sale
Sunniva Inc terminated the sales of its auxiliary company – Sunniva Medical Inc. (SMI), to Cannapharmarx. Nick said the company is working on this termination deal and weighing its options carefully. Cannapharmarx is exploring other acquisition avenues to enhance value for the shareholders.
Adds new Genetics Division
Cannapharmarx added a new genetics unit to expand its brand. It accurately labeled its cannabis varieties to provide desired effects for patients and consumers. Nick commenting on establishing a new genetics division said it will help to ensure high quality and provide the best product to the customers. The new unit will play an important role in developing cannabis strains that grow in a shorter period and provide end products to the customers quickly.