EDMONTON, ALBERTA–(Marketwired – Nov. 28, 2017) – Radient Technologies Inc. (TSX VENTURE:RTI) (the “Company”) announced today that it has released its second quarter financial results for the fiscal year ended March 31, 2018. The unaudited financial statements, Management's Discussion and Analysis, and the CEO & CFO certifications for the period ended September 30, 2017 are available on www.SEDAR.com.
Key Highlights for Q2 2018
- The Company continued the execution of commercial manufacturing activities with a series of contracts for manufacturing specific ingredients for a multi-national ingredients company. During the quarter, the company added a third ingredient to the two that were already being manufactured under those agreements.
- As previously announced on November 6, 2017, the Company finalized a Master Services Agreement (“MSA”) with Aurora Cannabis Inc. (TSX:ACB)(OTCQX:ACBFF)(FRANKFURT:21P)(WKN:A1C4WM) (“Aurora”) related to the supply of standardized cannabis extracts for Aurora using its proprietary MAP™ technology. The agreement has an initial term of five years, with an option for Aurora to renew the agreement for an additional five years. The agreement will cover services delivered in Canada, Australia, and the European Union with Aurora having the right to negotiate with the Company to expand the jurisdictions covered. The MSA includes an Investor Rights Agreement that provides Aurora with certain rights to participate in future offerings, providing Aurora with the option to expand its ownership in the Company up to 19.99%.
- On July 28, 2017, the $2 million convertible debenture with Aurora was converted into 14,285,714 common shares of the Company, a significant contributor to the decrease in the Company's current liabilities from $4,114,360 at March 31, 2017 to $964,020 at September 30, 2017.
- The Company launched its RTI Global Health and Wellness Solutions business to represent the direct application of Radient's platforms to help develop high quality, differentiated, naturally-derived products. Supported by Radient's patented MAP™ technology, as well as its expertise in working with plant extracts, RTI Global Health and Wellness Solutions will improve the cost structure and quality of customers' products. The business unit is actively pursuing partnerships, co-branding and direct investments in emerging technologies.
- The Company applied for a controlled substance dealer's license with Health Canada for its manufacturing facility. The license would be in addition to the production license application under the Access to Cannabis for Medical Purposes Regulations for the manufacturing facility (filed in Q4 2017) and the application for a controlled substance dealer's license for the laboratory (filed in Q3 2017). Health Canada has advised that the controlled substance dealer's license application is in the Review stage and that its 180-business day service window ends in mid-December 2017.
- As of September 30, 2017, the cash position was strong at $9.8 million.
Post Reporting Events
- On October 2, 2017, the Company completed the previously announced conversion of $6,210,633 of debt (inclusive of interest) with AVAC Ltd. (“AVAC”), an arm's length third party creditor, for 9,424,330 common shares at a price of $0.66 per share. The conversion is a significant transaction in the Company's plans to continue strengthening its balance sheet.
- Subsequent to September 30, 2017, 342,187 common shares related to stock option exercises were issued for proceeds of $225,843 and 4,614,987 common shares related to warrant exercises were issued for proceeds of $1,492,951.
- Furthermore, 933,333 units of the Company were issued related to finders' options exercises for total proceeds of $420,000 at an exercise price of $0.45 subsequent to September 30, 2017. These units included issuance of 933,333 common shares and 466,667 common share purchase warrants entitling the holder to subscribe for additional common shares at a price of $0.70 per common share until March 9, 2019.
- As previously reported on November 22, 2017, Health Canada released their “Proposed Approach to the Regulation of Cannabis” (the “Proposals”) publication. The Company is pleased with the progressive nature of the Proposals and that Radient's business model would be a consistent fit within a healthy, inclusive market for cannabis products under the Proposals.
Denis Taschuk, President and CEO of Radient, stated “We are very excited to have finalized our first MSA in the cannabis industry with our cornerstone partner Aurora. This provides us a strong base as we expand further into the cannabis industry. Additionally, we were successful in further strengthening our balance sheet through the conversions of the Aurora convertible debenture and the AVAC royalty interest. This will help position us for future growth.”
Shares for Services Agreement
On November 9, 2017, the Company approved a second share for services agreement with an arm's length third party in exchange for business development services. Pursuant to the agreement, the Company may issue up to a maximum of $102,000 USD of common shares in any fiscal year in consideration for such services.
The number of shares to be issued for each quarter will be determined at the end of each quarter, after the services have been provided to the Company. The issue price of the shares will be the closing trading price of the Company's shares on the last trading day of such quarter. The Company will issue a press release after each issuance of shares under the terms of the Agreement.
The agreement shall automatically renew for successive two-year terms, subject to the rights of termination of the parties. The shares for services agreement is subject to approval by the TSX Venture Exchange and will be subject to TSX Venture Exchange approval for each renewal term.
2017 Annual General Meeting (AGM)
The Company's AGM took place on November 24, 2017. All proposed directors including Denis M. Taschuk, Mike Cabigon, Steven Splinter, Harry Kaura, Steven Dauphin, Francesco Ferlaino, Dimitris Tzanis, Jith Veeravalli and Jan Petzel were elected to serve for a one-year term.
Armand Lavoie did not stand for re-election. Frank Ferlaino, Chairman of the Board of Directors of Radient, stated “We would like to thank Armand for his long time commitment and significant contribution he has made to Radient. He served on the Board since 2003 and was instrumental in the evolution of the Company from its initial start-up days to where it is today.”
Steven Splinter, Chief Technology Officer for Radient joins the Board. Steven was responsible for founding the Company in 2001 and has been involved with the Company continuously since. Denis Taschuk, President and CEO of Radient, stated “Steven's historic contributions to the development of our platform have been invaluable, and we are excited by the even greater contributions he can make to the Company as a member of the Board.”
All other matters, namely the appointment of auditors and the re-approval and ratification of the Company's Stock Option Plan were also approved by the shareholders.
Radient extracts natural compounds from a range of biological materials using microwave assisted processing (“MAP™”), a patented technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its 20,000-square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, personal care and cannabis markets. Visit www.radientinc.com for more information.
Information set forth in this news release contains forward-looking information and statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The terms and phrases “goal”, “commitment”, “guidance”, “expects”, “would”, “will”, “continuing”, “drive”, “believes”, “indicate”, “look forward”, “grow”, “outlook”, “forecasts”, “intend”, and similar terms and phrases are intended to identify these forward- looking statements, including but not limited to statements regarding the completion of shares for debt transaction. The Corporation cautions that all forward-looking information and statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Corporation's control. Such factors include, among other things: risks and uncertainties relating to the Corporation's ability to complete the proposed shares for debt transaction. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Corporation undertakes no obligation to publicly update or revise forward- looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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