Medicine Man Technologies Inc. (OTCQB: MDCL), one of the United States' leading cannabis branding and consulting companies today provided preliminary financial results for the quarter ended March 31, 2018, an update on new client activity, and insight as to recent federal developments.
The Company projects having achieved revenue growth to approximately $1.2M in its first quarter, a 122% increase over the $541,000 as reported in the comparable first quarter period in 2017, making this the fifth consecutive quarter on quarter revenue growth period achieved. In addition, Medicine Man Technologies anticipates reaching an operational profit/loss breakeven point for the quarter and, the Company repaid all its remaining debt in this quarter.
Since its last client update in early March of 2018, the Company has entered into five (5) new license and/or service agreements and is pleased to highlight its single Iowa client’s win of two dispensary licenses, which was announced in late March by our client. Additionally, among the new license agreements is substantial new Cultivation MAX Client in Nevada, which expects to begin construction around mid-year for the rehabilitation of over 100,000 SF of existing space.
Brett Roper, Medicine Man Technologies’ co-founder and CEO commented, “We are pleased with the solid operational results that we project for the first quarter of 2018, highlighted by the achievement of a breakeven quarter, and believe that this performance has the Company firmly on track to achieving its profit goals for the full year. As it relates to new client expansion, we continue to experience an increase in both US as well as international inquiries, as the Company’s reputation and expanded client pipeline continues to evolve. As of this date we have several formal service proposals out to prospective new clients in multiple states and expect our client base to continue to expand over time.”
Mr. Roper continued, “We are also pleased with the recent report of expected non-interference from the U.S. Department of Justice in Colorado’s Cannabis marketplace, as such a commitment by the Trump administration to Senator Gardner would offer a defined path to the creation of an overarching legal strategy related to states’ rights in determining their individual direction for Cannabis regulations and deployment. We anticipate that this development will have a positive impact on the progress of Colorado House Bill 18-1011, allowing certain strictly defined ‘fully reporting’ public companies to hold ownership in Colorado based Cannabis licenses. We are confident that this level of public company transparency would benefit the industry and investors alike and provide a source of new capital to those businesses deserving of it.”
Andy Williams, Chairperson of Medicine Man Technologies’ Board of Directors added, “Yet again, Senator Cory Gardner has stepped up for Colorado and made a positive impact on the cannabis industry. We applaud the work of the New Federalism Fund in educating Republicans like Senator Gardner on marijuana-related issues. We look forward to continued pro-cannabis legal initiatives, including enacting the Cole memo into law instead of a referendum, which we also believe holds the potential to fix issues facing the industry related to banking and 280e."
Additionally, on the new client front, Medicine Man Technologies has entered into preliminary negotiations with one of its significant existing Canadian partners to expand support to the Micro Grower community in Canada through offering enhanced access to the Company’s proprietary Three-A-Light ® cultivation methods and Success Nutrients ® as a cornerstone of that new enterprise through an extended licensing arrangement.
Joshua Haupt, Medicine Man Technologies’ Chief Revenue Officer stated, “This market segment for cultivators will require a hyper competitive footprint as it relates to the 2,000 SF canopy limitation and I believe that our current cultivation efficiency and performance will provide these talented growers with a distinct advantage in achieving low cost production of quality tested ‘craft’ based cannabis to the marketplace in Canada. The craft side of cultivation served as my onramp to the industry years ago and resulted in my creation of the Three-A-Light methodology. I look forward to working with our licensees in Canada and across our growing client footprint to assist these entrepreneurs to achieve maximum efficiency in their gardens.”
About Medicine Man Technologies, Inc.
Established in March 2014, the Company secured its first client/licensee in April 2014. To date, the Company has provided guidance for several clients that have successfully secured licenses to operate cannabis businesses within their state. The Company currently has or has had active clients in California, Iowa, Oregon, Colorado, Nevada, Illinois, Michigan, Arkansas, Pennsylvania, Florida, Ohio, Maryland, New York, Massachusetts, Puerto Rico, Canada, Australia, Germany, and South Africa. We continue to focus on working with clients to 1) utilize its experience, technology, and training to help secure a license in states with newly emerging regulations, 2) deploy the Company's highly effective variable capacity constant harvest cultivation practices through its deployment of Cultivation MAX, and eliminate the liability of single grower dependence, 3) avoid the costly mistakes generally made in start-up, 4) stay engaged with an ever expanding team of licensees and partners, all focused on quality and safety that will "share" the ever-improving experience and knowledge of the network, and 5) continuing the expansion of our Brands Warehouse concept through entry into industry based cooperative agreements and pursuing other acquisitions as they prove suitable to our overall business development strategy.
Safe Harbor Statement
This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected, including statements related to the amount and timing of expected revenues and any payment of dividends on our common and preferred stock, statements related to our financial performance, expected income, distributions, and future growth for upcoming quarterly and annual periods. These risks and uncertainties are further defined in filings and reports by the Company with the U.S. Securities and Exchange Commission (SEC). Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors detailed from time to time in our filings with the Securities and Exchange Commission. Among other matters, the Medicine Man Technologies may not be able to sustain growth or achieve profitability based upon many factors including, but not limited to, general stock market conditions. Reference is hereby made to cautionary statements set forth in the Company's most recent SEC filings. We have incurred and will continue to incur significant expenses in our expansion of our existing and new service lines, noting there is no assurance that we will generate enough revenues to offset those costs in both the near and long term. Additional service offerings may expose us to additional legal and regulatory costs and unknown exposure(s) based upon the various geopolitical locations where we will be providing services, the impact of which cannot be predicted at this time.