Radient Technologies Inc. Reports Third Quarter 2019 Financial Results and Provides Corporate Update
EDMONTON, Alberta, Feb. 28, 2019 (GLOBE NEWSWIRE) -- Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture: RTI; OTCQX: RDDTF) has released its financial results for the third fiscal quarter ended December 31, 2018. The reviewed financial statements and Management’s Discussion & Analysis are available under the Company’s profile at www.SEDAR.com.
Radient’s balance sheet remains strong, with a cash balance of CAD $37.6M and working capital of CAD $37.4M as of December 31, 2018. This reserve of cash will allow Radient to execute on its previously announced physical and operational expansions in Edmonton and Germany (summarized in greater detail below). These facilities will be dedicated to the production of premium grade, high-margin cannabis and hemp derived ingredients and products.
Radient’s current total debt is CAD $10M and the Company was granted its Standard Processing License from Health Canada on February 1, 2019. This puts the Company in an advantageous position as it expects to be generating revenues during the previously announced build-out of its brand new facilities in Edmonton and Germany (please see below for further details including estimated annual throughputs).
Edmonton I and Standard Processing License from Health Canada:
On February 4, 2019, Radient announced it was granted its Standard Processing license from Health Canada, permitting the Company to begin legally extracting cannabinoids for the purpose of sale to Canadian federal license holders. The Company expects to be capable of processing cannabis at a capacity of more than 200 kg per day at its Edmonton I facility for its partners, including Aurora Cannabis Inc. (“Aurora”) (TSX: ACB; NYSE: ACB). Radient will inform shareholders of the commencement of production for sale to its partners via press release.
Retrofitting Operation: CBD From Industrial Hemp (“Edmonton II” facility):
Radient announced on November 28, 2018 that it would be retrofitting a portion of its existing manufacturing facility for the processing of industrial hemp at industrial scale volumes (the “Edmonton II” facility). The Company previously estimated that it would be capable of processing throughputs of 1,200 kg per day of industrial hemp at this location. Radient now expects that it will be capable of processing industrial hemp at throughputs of up to 1,500 kg per day at this location. The Edmonton II facility is expected to be complete before the end of calendar 2019, at which point Radient expects to commence processing industrial hemp for its partners, including Aurora.
Edmonton III and Germany Manufacturing Facility Construction:
As previously announced on February 4, 2019 Radient has commenced foundation work on the construction of its Edmonton III facility of over 100,000 sq. ft., located on the lands adjacent to the Edmonton I and Edmonton II facilities, at 4035 101 St NW, Edmonton, Alberta. The Company expects to complete the development of Edmonton III in the second half of calendar 2020. Expected throughputs at this facility will be 1,000 kg of medical cannabis per day, and 10,000 kg of industrial hemp per day. Radient will be applying to receive EU-GMP certification for this facility.
Additionally, as previously announced on February 4, 2019 the Company has completed site selection and initial renderings for its Germany Manufacturing Facility, which upon completion (expected in the second half of calendar 2020), will be similar in size and throughput capabilities to the Edmonton III facility.
Estimated Annual Cannabis and Hemp Throughputs:
|Radient’s Estimated Annual Capacity *1|
|Facility||Biomass||Throughput/year (kg)||(metric tons)||Commissioned*2|
|Edmonton II||Hemp||420,000||420||End of 2019|
|Edmonton III||Cannabis||280,000||280||Mid 2020|
|Edmonton III||Hemp||2,800,000||2,800||Mid 2020|
|Total combined||Cannabis||616,000||616||Mid 2020|
|Total combined||Hemp||6,020,000||6,020||Mid 2020|
|*1 Management’s best estimate based on a 280-day operational year
*2 Expected commissioning timelines based on calendar year
Natac Solutions Joint Arrangement:
On October 16, 2018, Radient announced that it had signed a binding letter of intent with global ingredient manufacturer, Grupo Natac S.L. (“Natac”), to form a Joint Arrangement called Natac Solutions. The specific terms of the Joint Arrangement are still being finalized. The Natac Solutions brand was launched at SupplySide West on November 7, 2018.
Radient has now installed lab-scale and pilot-scale MAP™ equipment into Natac’s development facility in Madrid, Spain. Natac Solutions is, according to its business plan, combining Radient’s patented MAP™ technology and Natac’s expertise in the development of Full Plant Profile® premium plant-based ingredients in order to create proprietary customized extracts and ingredients for its customers.
Receipt of Licenses for Analytical Testing and Research from Health Canada:
Radient is pleased to announce that it has received its licenses for Analytical Testing and Research (the “Research Licenses”) from Health Canada, issued under the Cannabis Act and its regulations. These Research Licenses were granted on February 8, 2019 for the Company’s Research & Development Lab (the “Lab”), located at 8223 Roper Road, Edmonton, Alberta. These Research Licenses will replace the Lab’s previously held Dealer’s License, which was administered under the Office of Controlled Substances.
These Research Licenses allow the Company to perform research and analytical testing on cannabis materials, submit research protocols for various activities, and to apply for amendments to its existing licenses through the Cannabis Tracking and License System (the “CTLS”) to demonstrate its compliance to the Cannabis Regulations.
Stock Options Plan:
The Company announces today the grant of 1,025,000 stock options. Of these options, 250,000 were granted to a Director of the Company and the balance to management and consultants pursuant to the Company’s Stock Option Plan. The options are exercisable for a period of five years at a price of $0.93 per share. This grant of options is subject to the approval of the TSX Venture Exchange.
Radient Technologies provides industrial-scale manufacturing solutions for premium natural ingredients and products. Utilizing its patented MAP™ extraction technology, Radient delivers superior customer outcomes in terms of ingredient purity, yield, and cost, and serves global market leaders in industries such as foods & beverages, nutraceuticals, pharmaceuticals, cosmetics, and personal care. Since 2016, Radient has expanded its offerings to enter the cannabinoids market, using its MAP™ platform to provide premium ingredients that contain a full range of cannabinoid and terpene profiles. Please visit www.radientinc.com for more information.
SOURCE: Radient Technologies Inc.
Denis Taschuk, Chief Executive Officer, firstname.lastname@example.org,
Prakash Hariharan, Chief Financial Officer, email@example.com,
Caitlin Cheadle, Director of Communications, firstname.lastname@example.org
Forward Looking Information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the growth of the Company’s business operations; the daily throughput targets of industrial hemp under the section above titled “Retrofitting Operation: CBD From Industrial Hemp (“Edmonton II” facility):”; the daily throughput targets of medical cannabis and industrial hemp under the section above titled “Edmonton III and Germany Manufacturing Facility Construction:”; the annual throughput targets for biomass under the section above titled “Estimated Annual Cannabis and Hemp Throughputs:”; the Company’s ability to obtain other applicable licenses and certifications, including the EU-GMP certification; the adequacy of the Company’s working capital to develop its business; the Company’s ability to expand its operations in Europe and Canada; the Company’s ability to grow its business in the cannabis sector; the Company’s ability to process cannabis and/or hemp; the timing of the commencement of production by the Company; the Company’s ability to retrofit and construct facilities; the formation of the Joint Arrangement with Natac; the impact of Natac Solutions on the Company’s business; the granting of stock options and the Company’s future plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Radient, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Although Radient has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Radient does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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