DOCSLIB.ORG

Harvest Enterprises Group of Companies

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Harvest Enterprises Group of Companies HARVEST ENTERPRISES GROUP OF COMPANIES INTERIM CONDENSED COMBINED FINANCIAL STATEMENTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2018 AND 2017 (Unaudited) (Expressed in United States Dollars) (0) HARVEST ENTERPRISES GROUP OF COMPANIES Index to Unaudited Interim Condensed Combined Financial Statements Page(s) UNAUDITED INTERIM CONDENSED COMBINED FINANCIAL STATEMENTS Unaudited Interim Condensed Combined Statements of Financial Position .............................................. 3 Unaudited Interim Condensed Combined Statements of Operations ......................................................... 4 Unaudited Interim Condensed Combined Statements of Changes in Members’ Equity ............................. 5 Unaudited Interim Condensed Combined Statements of Cash Flows ........................................................ 6 Notes to Unaudited Interim Condensed Combined Financial Statements ................................................. 7 (2) HARVEST ENTERPRISES GROUP OF COMPANIES Unaudited Interim Condensed Combined Statements of Operations For the Three and Nine Month Periods Ended September 30, 2018 and 2017 (Expressed in United States Dollars) Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Revenue $ 11,153,726 $ 6,881,604 $ 30,012,392 $ 15,615,722 Cost of Goods Sold (5,565,725) (3,420,651) (12,642,080) (6,774,484) Gross Profit Before Biological Asset Adjustments 5,588,001 3,460,953 17,370,312 8,841,238 Unrealized Gain on Changes in Fair Value of Biological Asset 5,690,989 885,082 5,690,989 885,082 Cost of Goods Sold on Biological Asset Transformation (2,132,896) (1,190,162) (3,558,987) (111,242) Gross Profit 9,146,094 3,155,873 19,502,314 9,615,078 Expenses General and Administrative 6,571,065 3,006,126 12,357,167 5,447,133 Sales and Marketing 485,915 189,415 922,972 410,693 Depreciation and Amortization 341,773 143,910 1,077,855 226,730 Total Expenses 7,398,753 3,339,451 14,357,994 6,084,556 Operating Income 1,747,342 (183,578) 5,144,320 3,530,522 Other Income / (Expenses) Gain on Sale of Asset 34,684 - 1,560,953 - Interest Expense (486,645) 16,113 (791,888) (96,372) Income Before Taxes and Non-Controlling Interest 1,295,380 (167,465) 5,913,385 3,434,150 Income Taxes (1,034,247) (872,047) (2,453,706) (1,646,370) Income Before Non-Controlling Interest 261,133 (1,039,512) 3,459,679 1,787,780 Loss (income) Attributed to Non-Controlling Interest (714,137) 265,511 163,510 534,884 Net Income (Loss) Attributed to Harvest Enterprises Group of Companies $ (453,004) $ (774,001) $ 3,623,189 $ 2,322,664 The accompanying notes to the unaudited interim condensed combined financial statements are an integral part of these statements. (4) HARVEST ENTERPRISES GROUP OF COMPANIES Unaudited Interim Condensed Combined Statements of Changes in Members’ Equity For the Nine Months Ended September 30, 2018 and 2017 (Expressed in United States Dollars) Non-Controlling Members' Equity Interest Total Balance, January 1, 2017 $ 3,288,604 - $ 3,288,604 Other adjustments (9,809) - (9,809) Issuance of membership interest related to business acquisition Note 8 34,000,000 - 34,000,000 Net Income (Loss) 2,322,664 (534,884) 1,787,780 Balance, September 30, 2017 $ 39,601,458 $ (534,884) $ 39,066,575 Balance, January 1, 2018 $ 40,447,946 $ 523,933 $ 40,971,879 Contributions from noncontrolling interest members Note 13 - 4,434,144 4,434,144 Net Income ( Loss) 3,623,189 (163,510) 3,459,679 Balance, September 30, 2018 $ 44,071,135 $ 4,794,567 $ 48,865,702 The accompanying notes to the unaudited interim condensed combined financial statements are an integral part of these statements. (5) HARVEST ENTERPRISES GROUP OF COMPANIES Unaudited Interim Condensed Combined Statements of Cash Flows For the Nine Months Ended September 30, 2018 and 2017 (Expressed in United States Dollars) 2018 2017 CASH FLOW FROM OPERATING ACTIVITES Net Income Attributed to Harvest Group of Companies $ 3,623,189 $ 2,322,664 Net (Loss) Attributed to Non-Controlling Interest (163,510) (534,884) Adjustments to Reconcile Net Income to Net Cash Provided in Operating Activities Depreciation and Amortization 1,077,855 226,730 Gain on Sale of Assets Note 8 (1,571,765) - Unrealized (Gain) Loss on Biological Assets (2,132,002) (773,840) Changes in Operating Assets and Liabilities Accounts Receivable (661,786) 3,303 Inventory (3,580,728) (1,348,442) Biological Assets 68,965 (388,789) Other Assets (398,567) (432,057) Income Taxes Payable 1,627,427 1,646,989 Other Liabilities 476,483 (4,822) Accounts Payable 1,927,228 156,255 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 292,790 873,107 CASH FLOW FROM INVESTING ACTIVITES Purchases of Property, Plant, and Equipment (3,366,020) (10,518,787) Cash Acquired on Business Acquisition Note 8 - 39,200 Proceeds on Sale of Assets Note 8 1,000,000 - Acquistion of Corporate Interests Note 7 (5,000,000) Acquisitions/Advances of Intangibles (9,854,896) (541,523) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (17,220,916) (11,021,110) CASH FLOW FROM FINANCING ACTIVITES Proceeds/Issuance of Notes Payable 42,067,739 9,750,000 Repayment of Notes Payable (1,205,406) (878,920) Proceeds/Issuance of Noncontrolling Member Interests 3,141,836 - NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 44,004,169 8,871,080 NET INCREASE IN CASH AND CASH EQUIVALENTS 27,076,043 (1,276,923) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 1,098,763 2,228,187 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 28,174,806 $ 951,263 Supplemental disclosure with respect to cash flows Interest Paid $ 193,495 $ 76,006 The accompanying notes to the unaudited interim condensed combined financial statements are an integral part of these statements. (6) Harvest Enterprises Group of Companies Notes to the Unaudited Interim Condensed Combined Financial Statements For the Three and Nine Months Ended September 30, 2018 and 2017 (Expressed in United States Dollars) 1. NATURE OF OPERATIONS Harvest Enterprises Group of Companies (the “Company” or “Harvest”) is a vertically integrated cannabis company that operates from “seed to sale.” The Company has expanded throughout Arizona and into Maryland and Pennsylvania and is actively expanding into Nevada, Massachusetts, California, Ohio, North Dakota, New Jersey, Florida and Arkansas. The Company operates in one segment, the production and sale of cannabis; with three main business areas contributing to that segment. • Cultivation – Harvest grows cannabis in outdoor, indoor and greenhouse facilities. Its expertise in growing enables the company to produce award-winning and proprietary strains in a highly cost-effective manner. Harvest sells its productions in Harvest dispensaries and also to third parties. • Processing – Harvest converts cannabis biomass into formulated oil, using a variety of extraction techniques. The company uses some of this oil to produce consumer products such as vaporizer cartridges and edibles, and it sells the remaining oil to third parties. • Retail dispensaries – Harvest operates award-winning retail dispensaries that sell proprietary and third party cannabis products to patients and customers. Harvest conducts business through wholly-owned operating subsidiaries and operating agreements established to conduct the different segments of each business (each an “Operating Subsidiary” and together, “Operating Subsidiaries”). The Company’s principal operating locations, and type of operation are listed below: Operating Locations City, State Nature of Operations Opened Tempe Tempe, Arizona Retail Dispensary September 2013 Scottsdale Scottsdale, Arizona Retail Dispensary September 2016 Baseline Phoenix, Arizona Retail Dispensary October 2017 Lake Havasu Lake Havasu City, Arizona Retail Dispensary September 2016 Avondale Avondale, Arizona Retail Dispensary August 2017 Tucson Tucson, Arizona Retail Dispensary January 2018 Cottonwood Cottonwood, Arizona Retail Dispensary April 2018 Rockville Rockville, Maryland Retail Dispensary March 2018 Reading Reading, Pennsylvania Retail Dispensary September 2018 Bellemont Production Bellemont, Arizona Processing Lab July 2015 Camp Verde Cultivation Camp Verde, Arizona Greenhouse/Outdoor Grow March 2017 Hancock Cultivation Hancock, Maryland Indoor Grow September 2017 The Company is currently in various stages of expansion as the Company is growing its commercial footprint focusing on building additional retail, cultivation and production locations for medical and adult use cannabis. The Company has received provisional permits to operate a dispensary and production facility in the cities of Napa, Merced, and Moreno Valley, California under Harvest of California; and upon project completion and inspection, to receive final operating permits. (7) Harvest Enterprises Group of Companies Notes to the Unaudited Interim Condensed Combined Financial Statements For the Three and Nine Months Ended September 30, 2018 and 2017 (Expressed in United States Dollars) 1. NATURE OF OPERATIONS (Continued) Each Operating Subsidiary holds the active and/or pending cannabis licenses associated with its activities, staffs and/or manages the operating locations, and/or owns the real estate and primary fixed assets used in the cannabis businesses. In certain States, cannabis licenses are typically divided into three categories: dispensary, cultivation, and production. Dispensary licenses comprise the retail operations and allow a company to dispense medical cannabis to patients. Cultivation licenses allow a company to grow medical cannabis plants and production licenses
Load more

Recommended publications
  • BLOSSOM ENTERPRISES, LLC Application ID 352
    Ohio Medical Marijuana Dispensary Application BLOSSOM ENTERPRISES, LLC Application ID 352 Demographic Information(Business Contact) A-1.1 Business Name, as it appears on the Applicant’s certificate of incorporation, charter, bylaws, partnership agreement or other legal business formation documents Blossom Enterprises, LLC A-1.2 Other trade names and DBA (doing business as) names Blossom A-1.3 Business Street Address 508 Old Harbor Court A-1.4 City Centerville A-1.5 State OH A-1.6 Zip Code 45458 A-1.7 Phone 2027704708 A-1.8 Email [email protected] Demographic Information(Primary Contact/Registered Agent) A-2.1 Please select: Primary Contact, or Registered Agent for this Application PRIMARY CONTACT A-2.2 First Name Jumoke A-2.3 Middle Name No response provided by applicant A-2.4 Last Name Akinnagbe A-2.5 Street Address 508 Old Harbor Court A-2.6 City Centerville A-2.7 State OH A-2.8 Zip Code 45458 A-2.9 Phone 2027704708 A-2.10 Email [email protected] Demographic Information(Applicant Organization and Tax Status) A-3.1 Select One Limited Liability Company A-3.1A If other, explain No response provided by applicant A-3.2 State of Incorporation or Registration DE A-3.3 Date of Formation 11/03/2017 A-3.4 Business Name on Formation Documents Blossom Enterprises LLC A-3.5 Federal Employer ID number This response has been entirely redacted A-3.6 Ohio Unemployment Compensation Account Number No response provided by applicant A-3.7 Ohio Department of Taxation Number (if Applicant is currently doing business in Ohio) No response provided by applicant A-3.8 Ohio Workers’ Compensation Policy Number (if Applicant is currently doing business in Ohio) No response provided by applicant A-3.9 The Applicant attests that workers’ compensation insurance will be obtained by the time the State of Ohio Board of Pharmacy determines the Applicant to be operational under the Act and regulations.
    [Show full text]
  • Before the Ohio Senate Government Oversight and Reform Committee - Interested Party Testimony Regarding House Bill No
    Before The Ohio Senate Government Oversight and Reform Committee - Interested Party Testimony Regarding House Bill No. 523 In View Of Other State Regulatory Approaches To Medicinal Cannabis by Ted Bibart, Legislative Analyst Benesch, Friedlander, Coplan, & Aronoff LLP Introduction and Objectives • As a Legislative Analyst I am tasked with analyzing complex statutory and regulatory schemes to determine application, compliance, and public policy significance. • I am not yet licensed to practice law in the state of Ohio, and sit for the Ohio bar examination this July. • Benesch is not actively lobbying for anyone on the issue of medicinal cannabis in Ohio. • Instead, I offer “interested party” testimony regarding the House Bill No. 523 (HB 523) and comparative state statutory and regulatory approaches to the implementation of legalized medicinal cannabis. 2 Evaluation Criteria • Federal Harmony – The given state’s statutes and regulations are viewed in the light of federal prohibition and the corresponding tension presented by Department of Justice (“DOJ”) guidance, and historic trends. • Patient Access – The state’s statutory and regulatory scheme is then evaluated for its functional distribution of medicinal cannabis to patients in need. • Viability – The statutes and regulations are then appraised for their effective creation, implementation, and regulation of the long-term market infrastructure necessary to produce and sustain a workable program. 3 Federal Harmony • The relevant historical trend is evident in the trilogy of guidance issued by the DOJ, starting with the memorandum authored by Deputy Attorney General David W. Ogden on October 19, 2009 (the “Ogden Memo”). – Here, the Ogden Memo provides clarification and guidance to federal prosecutors in States that have some form of legalized cannabis use advising against enforcement of federal prohibition as an inefficient use of limited federal resources.
    [Show full text]
  • Green Harvest Health, a Medical Cannabis Clinic Located in Pickerington, OH
    Biography Certified physician development coach, Ohio, Career coaching, Life coaching, Communication coaching, Midwest Dr. Bridget Williams is the owner of Green Harvest Health, a medical cannabis clinic located in Pickerington, OH. Green Harvest Health is the only medical cannabis clinic in Ohio with life and wellness coaching incorporated into the practice. Dr. Williams brings nearly 20 years of experience in family and occupational medicine from Cleveland Clinic and training in life and cannabis coaching to her practice. Her practice provides comprehensive and affordable care for the metropolitan Columbus area as well as satellite offices in Cleveland and Cincinnati. GreenHarvest.Health About Bridget Williams, MD My clients are physicians and other professionals struggling with stress, identity and the difficulties of being “the only” in workplace situations. They are seeking a better work/life balance and desire to soar with greater personal and professional confidence. It is through self-discovery that habits can be broken, and significant changes can be made. Client and Business Focus My clients are typically physicians and other professionals who feel they could do better at their jobs and their personal lives but tend to be struggling to find clarity regarding what is missing. They describe themselves as “the only” in their workplace or educational environment. Whether they are the only woman, minority, LBGTQ or simply different in thought. They struggle in believing they are good enough and that they earned their credentials on their own intelligence and hard work. My clients realize that the strong confident person they once were is shrinking and becoming less identifiable. I work with these amazing people to help them build awareness of themselves and their environment.
    [Show full text]
  • Should the United States Legalize Cannabis?
    Should the United States Legalize Cannabis? An Interactive Qualifying Project submitted to the Faculty of WORCESTER POLYTECHNIC INSTITUTE in partial fulfilment of the requirements for the degree of Bachelor of Science by David Quinn Zachary Belohoubek Date: 4 May 2016 Approved By: Professor Patricia Stapleton Worcester Polytechnic Institute This report represents work of WPI undergraduate students submitted to the faculty as evidence of a degree requirement. WPI routinely publishes these reports on its web site without editorial or peer review. For more information about the projects program at WPI, see http://www.wpi.edu/Academics/Projects. 1 TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................... 2 TABLE OF TABLES ..................................................................................................................... 3 TABLE OF FIGURES .................................................................................................................... 3 ABSTRACT ................................................................................................................................... 4 INTRODUCTION ........................................................................................................................ 10 BACKGROUND .......................................................................................................................... 13 EARLY HISTORY OF CANNABIS IN AMERICA .............................................................
    [Show full text]
  • Before the Ohio House of Representatives Select Committee on Medical Marijuana - Interested Party Testimony Regarding House Bill No
    Before The Ohio House Of Representatives Select Committee on Medical Marijuana - Interested Party Testimony Regarding House Bill No. 523 In View Of Other State Regulatory Approaches To Medicinal Cannabis by Ted Bibart, Legislative Analyst Benesch, Friedlander, Coplan, & Aronoff LLP Introduction and Objectives • As a Legislative Analyst I am tasked with analyzing complex statutory and regulatory schemes to determine application, compliance, and public policy significance. • I am not yet licensed to practice law in the state of Ohio, and sit for the Ohio bar examination this July. • Benesch is not actively lobbying for anyone on the issue of medicinal cannabis in Ohio. • Instead, I offer “interested party” testimony regarding the proposed House Bill No. 523 (HB 523) and comparative state statutory and regulatory approaches to the implementation of legalized medicinal cannabis. 2 Evaluation Criteria • Federal Harmony – The given state’s statutes and regulations are viewed in the light of federal prohibition and the corresponding tension presented by Department of Justice (“DOJ”) guidance, and historic trends. • Patient Access – The state’s statutory and regulatory scheme is then evaluated for its functional distribution of medicinal cannabis to patients in need. • Viability – The statutes and regulations are then appraised for their effective creation, implementation, and regulation of the long-term market infrastructure necessary to produce and sustain a workable program. 3 Federal Harmony • The relevant historical trend is evident in the trilogy of guidance issued by the DOJ, starting with the memorandum authored by Deputy Attorney General David W. Ogden on October 19, 2009 (the “Ogden Memo”). – Here, the Ogden Memo provides clarification and guidance to federal prosecutors in States that have some form of legalized cannabis use advising against enforcement of federal prohibition as an inefficient use of limited federal resources.
    [Show full text]
  • Daniel J. Mallinson , A. Lee Hannah , Brad C. Steel , Lana G. Jones
    Implementation of Medical Cannabis in Pennsylvania and Ohio Daniel J. Mallinson1, A. Lee Hannah2, Brad C. Steel2, Lana G. Jones2 1School of Public Affairs, Penn State Harrisburg and 2School of Public and International Affairs, Wright State University [email protected] Since 1996, 33 states and the District of Columbia have adopted medical cannabis programs. Not all programs, however, are the same. This is even the case in states like Pennsylvania and Ohio who adopted medical cannabis in the same year and share many other social, political, and demographic characteristics. The purpose of this research is to compare these two similar cases with dissimilar outcomes. Pennsylvania has moved more quickly to implement medical cannabis, though it is not clear yet which program will be more effective in the long-run. Using implementation theory, we examine how policy design and political environment shape the implementation of medical cannabis in the two states. Motivations Federal Inducements Marijuana is still a Schedule I drug under the Controlled Substances Act of 1970, meaning it • Identify measurable independent and dependent variables for medical cannabis has no recognized medicinal use. However, federal enforcement signals have varied over implementation time. Our previous research found no impact of federal enforcement signals on medical • Compare two cases with substantial political, social, and demographic similarities in order cannabis adoption [2]. to identify specific differences that caused differences in implementation outcomes • Develop a framework for a 33 state study State Actors Implementation Theory Legislatures We rely on the third generation of implementation theory [1] as our framework for understanding medical cannabis implementation.
    [Show full text]
  • Bowling Green Ohio Pot Penalties
    Bowling Green Ohio Pot Penalties Intercolumnar Traver usually clinging some Shaun or tear-gas sith. Gandhian and striped Cosmo deoxygenized his balmorals endues dulcify adumbratively. Defrayable and hammerless Englebert never forearm his unknightliness! Made against john geddert were apprehended less than ohio pot Penalties If smart contract meets all rural the requirements of that law the worker. 2421 Fitzgerald Industrial Dr Bowling Green KY 42101 270 43-6750. Individuals were indicted Matthew Edward Day age 20 of solar City Ohio. Ohio Gun and CCW Laws Links to scope key sections of Ohio law though are. Issued by recent Supreme manual of Ohio on all documents filed with the real An attorney. Find it best traffic tickets attorney serving Bowling Green background top Kentucky lawyers' fees client reviews lawyer rating case results education awards. From left Michael Che Walters 39 of Bowling Green Ohio and. What's better with wax pen or a vape pen? It did increase sentences for green who recklessly deal drugs within. How much pot plant a felony in Alabama? Bath salts Ecstasy heroin marijuana prescription opioids. Columbus City or last July reduced penalties for many up to 7. If object have been charged with drug possession our Bowling Green Ohio drug. Vacation House rentals in 4 Bedroom by owner 16767. OSBA's Weekly Legislative Report Ohio State Bar Association. Crime rate in those city highlighted that Paducah Mayfield Oak Grove Bowling Green. DUI Attorney Bowling Green OH Bowiling Green Ohio Lawyer. Maryland Master Gardener Handbook should List are Core Competencies Resume Examples Daniweb Bowling Green Ohio Pot Penalties Details Baldor Grinder.
    [Show full text]
  • (Formerly Securecom Mobile Inc.) Management's Discussion & Analysis Company Overview
    LIBERTY HEALTH SCIENCES INC. (FORMERLY SECURECOM MOBILE INC.) MANAGEMENT’S DISCUSSION & ANALYSIS This management discussion and analysis (“MD&A”) of the financial condition and results of operations of Liberty Health Sciences Inc., (the “Company” or “Liberty”) (formerly SecureCom Mobile Inc.), is for the three months ended May 31, 2019. It is supplemental to, and should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements and the accompanying notes for the three month period ended May 31, 2019 (the “Q1 2020 Financials”), as well as the audited consolidated financial statements for the year ended February 28, 2019. The Company’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). This MD&A has been prepared by reference to the MD&A disclosure requirements established under National Instrument 51-102 “Continuous Disclosure Obligations” (“NI 51-102”) of the Canadian Securities Administrators. Additional information regarding Liberty Health Sciences Inc. is available on our website at www.libertyhealthsciences.com or through the SEDAR website at www.sedar.com. In this MD&A, reference is made to gross profit before biological asset adjustments, gross margin before biological asset adjustments and adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”), which are not measures of financial performance under IFRS and may not be comparable to similarly titled measures used by other companies. The Company calculates each as follows: • Gross profit before biological asset adjustments is equal to gross profit less the non-cash change in the fair value on harvest and less the non-cash change in the fair value on cost of goods sold, if any.
    [Show full text]
  • Ohio Patient Network
    Ohio Ohio Patient Network - The Ohio Patient Network is a 501(c)(3) non-profit coalition of patients, caregivers, activists and medical professionals who support the compassionate use of cannabis for various medicinal purposes. Our mission is to coordinate information between patients, medical professionals, and attorneys, as well as to educate the public and keep the interested current with the movement`s news. Ohio Patient Network (OPN), P.O. Box 26353. Columbus, OH 43226. email - [email protected] , or Visit - http://www.ohiopatient.net The Ohio Patient Action Network is a sister to the charitable Ohio Patient Network for the purpose of lobbying, at all levels of government, for the therapeutic use of cannabis, as well as for or against existing or proposed legislation that involves therapeutic cannabis, and to engage in any other lawful purpose which the directors may approve. Visit - http://www.ohiopatientaction.org/ OPN Store - Support Medical Cannabis In Ohio! * Ohio Patient Network is a non-profit coalition of patients, caregivers, activists and medical professionals who support the compassionate use of cannabis for ... Visit - http://www.cafepress.com/OPNstore MMJ Action Network | Your Complete Guide To Medical Marijuana, Everything You Have Always ... Ohio Revised Code or be held liable for the patient's medical use of cannabis. ... visit - http://www.mmjactionnetwork.com/index.html ASA : OHIO | Medical cannabis (medical marijuana) resources in Ohio ... Find info here on the therapeutic uses of and research on medical cannabis. ... visit - http://www.safeaccessnow.org/article.php?id=260 Medical Cannabis Bill to Be Introduced in Ohio Senate | Proposal to Legalize Medical Marijuana in State Senate.
    [Show full text]
  • Liberty Q2 2019
    LIBERTY HEALTH SCIENCES INC. (FORMERLY SECURECOM MOBILE INC.) MANAGEMENT’S DISCUSSION & ANALYSIS This management discussion and analysis (“MD&A”) of the financial condition and results of operations of Liberty Health Sciences Inc., (the “Company” or “Liberty”) (formerly SecureCom Mobile Inc.), is for the three and six month period ended August 31, 2018. It is supplemental to, and should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements and the accompanying notes for the three and six month period ended August 31, 2018 (the “Q2 Financials”), as well as the audited consolidated financial statements for the period from May 1, 2017 to February 28, 2018. The Company’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). This MD&A has been prepared by reference to the MD&A disclosure requirements established under National Instrument 51-102 “Continuous Disclosure Obligations” (“NI 51-102”) of the Canadian Securities Administrators. Additional information regarding Liberty Health Sciences Inc. is available on our website at www.libertyhealthsciences.com or through the SEDAR website at www.sedar.com. In this MD&A, reference is made to adjusted gross profit, adjusted gross margin and adjusted earnings before interest, tax, depreciation and amortization (“EBITDA”), which are not measures of financial performance under IFRS and may not be comparable to similarly titled measures used by other companies. The Company calculates each as follows: • Adjusted gross profit is equal to gross profit less the non-cash increase in the fair value on harvest, less the non-cash increase in the fair value on cost of goods sold, less certain costs of goods sold and less non-cash depreciation, if any.
    [Show full text]
  • The Hazy Rollout of Ohio's Medical Marijuana Control Program (MMCP
    MY BENESCH MY TEAM Health Care & Life Sciences CLIENT BULLETIN October 2016 The Hazy Rollout of Ohio’s Medical Marijuana Control Program (MMCP) By Jeff McCourt and Dan O’Brien The ultimate functionality of the MMCP several of the largest law firms in the state – both in terms of the opportunity for were forced to suspend their activities in seriously ill patients to access medicine, the space while the Supreme Court rushed and the opportunity for market participants through an amendment to the ethics rules. to create a sustainable program to serve Such an amendment was adopted on those patients – will be determined by the September 20th, allowing doctors, patients extensive rulemaking and licensure process and cannabis businesses to obtain legal to be carried out by the Department of representation in Ohio. Jeff McCourt Dan O’Brien Commerce, the state Pharmacy Board, and Adding further confusion to the mix, the the state Medical Board over the next two When Ohio House Bill 523 (HB 523) became Ohio Municipal League has launched years. Several early indicators, however, effective on September 8, 2016, Ohio joined a statewide effort to educate local have begun to cast doubt on the program’s the company of 25 other states, the District governments about HB 523. Given the lack viability as written. This article recaps of Columbia, and several U.S. territories of clarity on how the state regulations will several recent developments in the MMCP that have legalized cannabis for medicinal operate and where cannabis operations will and addresses specifically the Medical purposes. Modeled after highly restrictive be located throughout the state, dozens Board’s recent guidance on the “affirmative regimes adopted by state legislatures of local governments have chosen to defense” provision of HB 523, the only part in Illinois, Maryland, and New York, the preemptively adopt bans or moratoriums on of the law that is currently operational.
    [Show full text]
  • Cannabis Survey
    CANNABIS SURVEY METHODOLOGY & SURVEY AUGUST 29, 2018 FUNDING FUNDING FOR THIS STUDY WAS PROVIDED BY A CANADIAN INSTITUTES OF HEALTH RESEARCH (CIHR) PROJECT BRIDGE GRANT (PJT-153342) AND A CIHR PROJECT GRANT. ADDITIONAL SUPPORT WAS PROVIDED BY A PUBLIC HEALTH AGENCY OF CANADA-CIHR CHAIR IN APPLIED PUBLIC HEALTH (HAMMOND). ETHICS CLEARANCE THE PROJECT HAS BEEN REVIEWED BY AND RECEIVED ETHICS CLEARANCE THROUGH A UNIVERSITY OF WATERLOO RESEARCH ETHICS COMMITTEE (ORE#22392). SUGGESTED CITATION HAMMOND D, GOODMAN S, LEOS-TORO C, WADSWORTH E, REID JL, HALL W, PACULA R, DRIEZEN P, GEORGE T, REHM J, WERB D, BOUDREAU C, PORATH A, ABRAMOVIC H, ELLIOT R. INTERNATIONAL CANNABIS POLICY SURVEY. AUGUST 2018. CONTACT DAVID HAMMOND PHD PROFESSOR PHAC-CIHR CHAIR IN APPLIED PUBLIC HEALTH SCHOOL OF PUBLIC HEALTH & HEALTH SYSTEMS UNIVERSITY OF WATERLOO WATERLOO, ON CANADA N2L 3G1 [email protected] WWW.DAVIDHAMMOND.CA METHODS OVERVIEW The primary objective of the International Cannabis Policy Study is to examine the impact of cannabis legalization on Canadians. The study examined five primary research questions, including the extent to which legalization is associated with changes in: 1) prevalence and patterns of cannabis use, including use among ‘minors’ and levels of dependence; 2) risk behaviours, including driving after cannabis use and use in ‘high risk’ occupational settings; and 3) the commercial retail environment, including the price and the type of products used, the use of high potency products, and the extent to which consumers shift from ‘illicit’ to ‘legal’ sources of cannabis; 4) perceptions of risk and social norms; and 5) the effectiveness of specific regulatory policies, including advertising restrictions, product labelling and warnings, public education campaigns, and the use of cannabis in public spaces and workplaces.
    [Show full text]