MJardin Group Inc (OTCMKTS:MJARF) Posts Revenues Of CAD 2.202 Million In Q1 2020: Derives CAD 0.3 Million From AMI JV

MJardin Group Inc (OTCMKTS:MJARF) reported a net loss of CAD 8.1 million on revenues of CAD 2.203 million (down 79.43%) in Q1 2020. Its AMI JV contributed revenues of CAD 0.3 million. The company reduced corporate expenses by 40% compared to Q1 2019. It did not realize revenues from cultivation facilities, which are mid-way, in the quarter.

Receives cultivation license for GRO Facility

MJardin received a cultivation license for its GRO Facility, based in Dunville, Ontario, from Health Canada. The company holds a 75% stake in GRO Facility, whereas Grand River Organics retains a 25% stake. It also received a nod for the expansion of cultivation at its WILL facility. The company is in negotiations with a license holder in Canada to sell its 2,000 Kg.

Efforts on to add 3 superior quality varieties

Technology and management improvements helped the company to increase yields by 14% for its managed service customers. The company streamlines its operations at Warman for monthly addition of 3 high-quality varieties and expects to realize sales in Q4 2020.

CEO of MJardin, Pat Witcher, said the company focused on completing the cultivation assets in Q1 2020 because it plans an aggressive push to penetrate the adult-use market in Canada. It will realize revenues from these efforts in Q2 2020.

Outlook for 2020 and Q2

MJardin will complete the run-rate production at its GRO and WILL facilities by the end of Q3 2020. It will commence Canadian production retail sales by the end of Q3 and expects to receive licensing of the Phase II expansion at AMI in Q4 2020. The company is also exploring expansion opportunities in certain locations in the US.

After Q1 2020

MJardin terminated an accord signed to acquire Cannabella on May 29, 2020. On April 30, 2020, the company postponed the interest and principal’s payment to a senior lender until next year. Pat said the company is continuously enjoying senior lenders’ support because of their faith in its prospects of the business and relentless efforts. It will help the company to support its working capital needs and boost profitability.

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