Annual Revenue Increased 345%
Improved Gross Margin of 74%
HICKSVILLE, NY, April 06, 2020 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Can B Corp. (OTCQB: CANB) (“Can B” or the “Company”), a diversified health and wellness company, announced today operating and financial results for the fourth quarter and year ended December 31, 2019.
“2019 was a very successful year for us. We expanded to 3 wholly-owned operating divisions, over 100 SKUs, and 21 employees, and ramped revenue up over 380% to nearly $2.5 million. We are excited for what lies ahead in 2020 and beyond as a complete Health & Wellness company providing the highest quality cannabidiol (CBD) products as well as traditional wellness products,” commented Marco Alfonsi, Can B’s Chief Executive Officer.
Mr. Alfonsi continued, “We are well-positioned to increase our market penetration with a diversified product line up, exclusive partnership with LifeGuard® for sun protection products, and multi-channel distribution strategy, combined with our R&D and production facility in Lacey, WA and recent acquisition of Green Grow Farms, a licensed hemp grow and cultivation in New York. Our recent corporate name change to Can B Corp. and stock restructuring better reflects our growth trajectory, who we have become and where we are going as positive steps towards our previously stated goal of achieving NASDAQ listing qualifications.”
Key Business Highlights for Q4 2019:
- Acquired Green Grow Farms
- Deployed Initial CBD Vending Machines
- Launched First Capsule Hemp Extract Product
- Created Fully Independent Board of Directors
Key Financial Highlights for Full Year 2019:
- Revenues increased by 345% to $2,305,503
- Gross margin of 74%
- Operating loss of $4.6 million, included $3.1 million in non-cash stock-based compensation
- Adjusted operating loss of $1.5 million
Can B offers several lines of branded CBD products that include tinctures, salves, topicals, and skincare products. These brands include Canbiola, developed for the medical community; Seven Chakras, a spa line; NuWellness for independent Pharmacies; and Pure Leaf Oil, their flagship consumer brand. A line of nutritional supplements called Super Foods will also be launching over the spring of 2020. The Company deploys a multi-channel distribution strategy with products sold via doctors, medical facilities, retailers, online, and direct to consumer
Subsequent to the end of 2019, Can B signed an exclusive license agreement with Lifeguard Licensing Corp. for the use of the well-known LifeGuard™ brand name and logo for a host of wellness products that will include CBD and non-CBD formulations. This includes topicals, beverages, and ingestible products as well as a full line of sunscreens, lip balms, replenish supplements and water to launch in the summer of 2020.
Additionally, the Company closed the previously announced agreement for an all-stock transaction to acquire 51% of Green Grow Farms Inc. Green Grow Farms Inc is licensed by New York State to grow hemp under the Hemp Research Pilot Program; it grows industrial hemp for grain, flower, and CBD. Green Grow Farms has successfully grown and harvested 6 Acres on two farms in Calverton, NY this year, yielding in excess of 12,000 pounds of dried biomass. The current New York inventory consists of Suver Haze and Sweetened varieties with CBD content ranging from 13% to 16%. Recently the Company also announced the acquisition of the remaining 49% of Green Grow Frams, Inc. to make this a 100% wholly-owned subsidiary.
Through its Duramed Division, the Company also offers FDA-approved medical devices that alleviate joint, bone and muscle pain from injuries and surgery. Sold through doctors and the medical community, they are considered an important part of the solution to solving the opioid crisis.
Financial Results for the Year Ended December 31, 2019:
Revenue for the year ended December 31, 2019 was $2,305,503, an increase of $1,636,900 or 345%, compared to $668,603 for the year ended December 31, 2018. This increase was mainly attributable due to the growth of CBD products and durable equipment sales.
Gross profit for the year ended December 31, 2019, was $1,706,919, resulting in a gross margin of 74.0%, compared to $263,069 and 39.3% for the year ended December 31, 2018. Absolute gross profit and gross margin increased due to the growth of product sales and outreach into additional market segments such as wholesale and private label opportunities.
Operating expenses for the year ended December 31, 2019, were $6.3 million, an increase of $2.6 million or 71%, compared to $3.7 million for the year ended December 31, 2018. This increase was mainly attributable due to an increase of $0.8 million in officer’s and director’s compensation and payroll taxes and an increase of $0.4 million in consulting fees, which included additional stock-based compensation of $1.2 million and $1.9 million, respectively, for a total of $3.1 million in stock-based compensation for the year ended December 31, 2019.
Operating loss for the year ended December 31, 2019, and 2018, was $4.6 million and $3.4 million, respectively, an increase of $1.2 million, or 34%.
Adjusted operating loss for the year ended December 31, 2019, and 2018, was $1.5 million and $0.6 million, respectively, an increase of $0.9 million, or 188%. Adjusted operating loss does not include non-cash stock-based compensation.
Net loss for the year ended December 31, 2019, and 2018, was $4.6 million and $4.1 million, respectively, an increase of $0.5 million, or 12%. The resulting EPS loss for the year ended December 31, 2019, was a ($0.01), as compared to an EPS loss of ($0.01) for the year ended December 31, 2018.
About Can B Corp.
Can B Corp. (OTCQB: CANB) is a Health & Wellness company providing the highest quality cannabidiol (CBD) products under the brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online and direct. CanB is also an exclusive partner of the LifeGuard® Brand in developing a line of consumer products. The Company is also launching Super Foods, a line of nutritional supplements. Can B Corp. owns and operates an R&D and production facility in Lacey, WA, and Green Grow Farms, a licensed hemp grow and cultivation in New York. To learn more about Can B Corp. and our comprehensive line of high-quality CBD products, please visit: Canbiola.com and www.CanBCorp.com, follow Can B Corp on Instagram and Facebook, or visit one of the 1,000+ retail outlets that carry Can B Corp. products.
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Forward-looking statements and risks and uncertainties discussed in this letter contain forward-looking statements. The words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect,” and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape or manner of our future financial condition or stock price.
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