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It was all supposed to be manufactured at Oneleaf's facility in Regina and Hill Street's takeover of that company is kaput!
Lexaria killing themselves. No infused beverages will available for sale in Canada by Dec 17 and no powders such as cannabis and/or CBD (cannabidiol) hemp powder for new consumer products including among other categories: tablets, capsules or packets for sale in Canada and for export as Hill Street was planning on manufacturing these products at the Oneleaf facility.
Sad.
BEER a NOTHING UPDATE-NO MONEY/NO BOTTLING PLANT for CANNABIS?
ORIGINAL: Hill Street Reports FY2019 Year End Results & Provides Update on Operations
2019-10-29 08:53 ET - News Release
Toronto, Ontario--(Newsfile Corp. - October 29, 2019) - Hill Street Beverage Company Inc. (TSXV: BEER) ("Hill Street" or the "Company") reported its fiscal 2019 financial results for the twelve-month period ended June 30, 2018. A complete set of financial statements and Management's Discussion & Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.
FY2019 Year End Financial Highlights
Gross revenue of $2.432 million, up 61% y/y;
Gross profit of $0.432 million up 400% y/y;
Gross profit of 18% of gross revenue up from 6% year ago;
Net loss of $5.944 million, including the following one-time and non cash charges:
$0.918 million charge for the public company listing;
$0.826 million for Stock based compensation; and
$.869 million in professional fees
Working capital of $1.880 million, compared with $1.455 million for same period last year;
End of quarter cash position of $1.068 million, with no debt.
"With cannabis edibles legal earlier this month in Canada, Hill Street continues to grow its brand awareness and consumer offtake in the alcohol free beverage segment," said Terry Donnelly, CEO of Hill Street. "All of the alcohol free revenue earned during the year came from growing our retail and distribution channels. Operational improvements made in FY18 began to show the results we anticipated. Going forward to address the cannabis-infused edibles market, we are evaluating companies third-party bottling and canning companies that have facilities designed and licensed to produce cannabis beverages remain. We are confident that Hill Street's alcohol free and cannabis infused business model will materialize as expected over the next 12 months."
Results for the Year Ended
June 30, 2019 June 30, 2018
Gross Revenue $2,432,094 $1,511,311
Chargebacks and listing fees -$1,151,894 -$840,429
Net Revenue $1,280,200 $670,882
Direct Costs -$848,373 -$584,500
Gross profit $431,827 $86,382
Operating Expenses $3,697,557 $2,126,109
Other One-time Expenses $868,984 $148,220
Non Cash Expenses $875,666 $895
Loss before other Income (Expense) -$5,010,380 -$2,188,842
Other income (Expenses)
Foreign exchange (loss) gain -$17,240 -$709
Loss on legal settlement -$215,930
Write-off of inventory -$7,298 -$242,399
Write-off of equipment -6,936
Write-off accounts payable
Charges relating to public company listing -$918,345
Other Income $9,411 $1,830
Income (Loss) and comprehensive Income (loss) for the period -$5,943,852 -$2,652,986
Basic and diluted income (loss) per common share -$0.07 -$0.07
Weighted average number of common shares outstanding 85,543,433 40,229,986
The Company presently has one business segment, the marketing and distribution of alcohol-free beer and wine in Canada and, to a much lesser extent, the United States. Hill Street sells its products online and into approximately 10,000 points of distribution in retail large chain stores in Canada. Hill Street's investment in it Distributor/ Broker networks has resulted in significant new distribution and retail listings. It also provides a direct consumer subscription service at www.hillstreetbevco.com.
Non-Alcoholic Adult Beverages
According to a leading beverage industry market research firm1, the non-alcoholic wine and beer market consistently ranks as one of the fastest growing sectors in the global beverage industry and is expected to generate 8.5% CAGR globally until 2025. In Canada, the segment has experienced annual growth in excess of 20% a year for the past few years, which has seen the launch of new alcohol-free beer brands from the top brewers in the world, in addition to new craft beer offerings from regional and local brewers. Hill Street has acquired a significant part of this growth, leveraging our relationship with major national retailers to expand our presence on shelf, as well as securing the opportunity to produce private label versions of our products for major retailers.
Cannabis-infused Adult Beverages
According to Statistics Canada, there are approximately 20 million consumers who drink alcohol. Per capita, the Canadian consumer drank approximately 255 (371 ml size) bottles per capita in 2015, implying that more than 5 billion bottles of beer were consumed during that year. The annual decline of beer consumption in Canada is 0.7%, as consumers trend to moderation and look for alternatives to alcohol given its negative impact on their health and lifestyle.
Since regulations prohibit the mixing of alcohol and cannabis in a commercial product, a beverage must contain no alcohol if cannabis is to be added to it, and the removal of alcohol from traditional beer and wine changes the flavour profile of the beverage. For this reason, any producer of traditional alcoholic beer or wine wishing to create a cannabis-infused version of its products would first have to produce great tasting alcohol-free versions of their brands that consumers would enjoy. Having already solved this problem, Hill Street is proceeding on to the next stage-infusing its beverages with cannabis. Management's license agreement with Lexaria Bioscience , provides the Company with access to technology to render cannabis into an odorless and tasteless water-soluble powder which can then be added to its alcohol-free beverages.
Hill Street believes that the cannabis-infused beverage segment can best be described as three distinct beverage categories: 1) "Heighten" (adult recreational use); 2) "Help" (therapeutic or functional beverages); and 3) "Heal" (beverages) and medicinal or prescription beverages). We intend to produce, market and sell beverages for the adult use and therapeutic or functional beverage categories.
Hill Street intends to meet this potential demand with the same type of high quality and award-winning products we have produced for the alcohol-free category, and with the same level of focus on brand development, sales and distribution.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Founded in 2008, Hill Street Beverage Company is the world's most award-winning company exclusively focused on alcohol-free beer, wine, and adult format beverages. Hill Street products include: Hill Street Craft Brewed Lager, Designated Draft alcohol-free beer, Vin(Zero) wines, and Vintense wines. Hill Street's award-winning products have won the Retail Council of Canada's Grand Prix, and numerous medals and accolades including three Gold, two Silver, and two Bronze Medals at the U.S. Open Beer Championships, and a prestigious Double Gold Medal at the San Francisco International Wine Challenge. As a result of the Royal Assent of Canada's Bill C-45, legislation to allow the sale of cannabis-infused beverages is expected to occur by October 17, 2019. Hill Street is currently applying for appropriate licenses to permit the production and sale of cannabis infused beverages in Canada, with the view of having infused products available for sale once the regulations permit. www.hillstreetbeverages.com
1 Mintel, Global Food and Drink Trends, 2019
They should put more lines in the water or change the bait.
These people follow Lexaria but you have to subscribe to read their reports.
https://www.researchfrc.com/website/company/lxx/
Annonymous (HMMJ?) sees to be finished unloading LXX, from Oct 15 to date they are net +1,101 shares. From Oct 1 to the 15th they were net -304,848 shares.
No doubt the governments have screwed up the legalization of weed. One of the biggest problems is the lack of retail stores, Ontario with the largest population has only 26 outlets in the whole province, about the same number of stores as the city of Calgary. Then there's the price which is over twice what you would pay on the black market.
It doesn't bode well for the Canadian cannabis stocks!
https://www.forbes.com/sites/stephenmcbride1/2019/10/21/aurora-cannabis-is-dumping-its-pot-which-may-be-a-sign-its-all-over/?utm_source=FACEBOOK&utm_medium=social&utm_term=Valerie%2F#76616c657269
Yeah, the dummies should have come out with this when they canceled the Oneleaf deal. WTF
2019-10-21 09:22 ET - News Release
Toronto, Ontario--(Newsfile Corp. - October 21, 2019) - Hill Street Beverage Co. (TSXV: BEER): Many investors have been asking about our plans to produce cannabis beverages since the mutual cancellation of the proposed acquisition of OneLeaf Cannabis. We believe the termination of this transaction will ultimately prove to be in the best interests of all shareholders, particularly given the current market sentiment towards further investment in cannabis cultivation facilities.
Since the cancellation of the transaction, we have been engaged in discussions with multiple companies who provide third-party bottling and canning services in facilities designed and licensed to produce cannabis beverages. We believe this avenue to produce our cannabis infused products will prove to be the best use of capital in a fast-moving industry where fundamental regulatory changes, coupled with changes in available suppliers, technologies, and services are likely to occur on a regular basis.
We anticipate announcing an agreement in the near future with one or more of these third-party service providers to produce our products, which management believes will significantly accelerate the launch of our cannabis beverage products into the newly created legal market when compared to completing the acquisition.
Signed
Terry Donnelly, Chairman and CEO, Hill Street Beverage Company Inc.,
terry@hillstreetbevco.com, (416) 543-4904
In Canada Hexo+Molsons have announced their new infused drinks, Canopy has announced a line of edibles etc. etc.
Has Lexaria or BEER or Cannfections applied to Health Canada for a permit to manufacture any edible or infused product? 60 day application period starts today.
Cannfections has a separate facility already or will have soon I believe.
And why pay a pretty premium for a wanna-be LP when you will be able to buy bulk cannabis oils like any other commodity and then further process into ChrgD+. BEER still needs facilities or a partner, their seemingly uncertain future is being reflected in their dismal share price.
I can see Cannfections installing a bottling line for co-packing BEER and other infused beverages.
My concern with Hill Street is that they were planning on bottling their drinks and making ChrgD+ at Oneleaf's Regina facility, now that deal has blown up BEER has no production facility and no partner. Are they going to be late to market and lose market share because they aren't ready, legalization in Canada starts today.
My bet is that Cannfections becomes the Canadian producer of ChrgD+ and they may as well put in a bottling/can line for BEER.
Hill Street also needs a bottler for their infused offerings now that the deal to buy Oneleaf has fallen through. I don't think they have the cash to build their own plant. I wonder what they will do? They probably will use a custom bottler.
Great find Abundance, that's the question, are they using Lexy's tech or bringing their own? It could be a major source of revenue if they do.
It doesn't take long for the word to spread, we've got the best infusion technology at the lowest cost per serving.
Future Catalysts
Current pipeline – live conversations with several tier-1
cannabinoid product manufacturers (new licensees)
Operations: Canada and the USA, discussions
underway for Mexico and Europe
Patents-many patents pending
Altria-complete $12m funding
Anonymous Trading-LXX
Going back to August I see that they were net -425,450 shares that month, so in the last 3 months, Anonymous is net -1,033,096 shares of LXX. HMMJ must of unloaded everything!
Thanks for that Abundance. Just looking at the numbers for LXX. The broker or brokers hiding as Anonymous have since Sept 2 been the biggest trader of Lexaria shares. Sept 2 to date they are net -607,646 shares. This would be consistent with selling from HMMJ.
Terry Donnelly
Doesn't say anywhere whether cannabis is full spectrum or not. Technology is patent-pending only.
https://finance.yahoo.com/news/sproutly-provides-business-moosehead-joint-103000847.html
Altria has its IQOS, should be safer than vaping.
https://www.cnbc.com/video/2019/10/04/heres-what-to-know-about-altrias-iqos-a-heated-tobacco-device.html
2019-10-01 09:02 ET - News Release
Toronto, Ontario--(Newsfile Corp. - October 1, 2019) - Hill Street Beverage Company Inc. (TSXV: BEER) ("Hill Street" or the "Company"), today announces that further to its press release dated May 28, 2019, the due diligence period for its proposed acquisition of OneLeaf Cannabis Corp. ("OneLeaf") has expired, and the parties have determined not to proceed with the proposed transaction. The Company also announces that, further to its press release of July 24, 2019, the Company's proposed licencing partnership with Lexaria Bioscience Corp. will not be impacted by termination of the letter of intent with OneLeaf.
Must be with Hill Street or Lexy. I believe Lxrp is the only Canadian company that can produce water-soluble, odorless, colorless, tasteless cannabis powder that's fast-acting.
There's https://www.oleolife.com/ but they're in the US and I don't think their powders are tasteless as they are all flavored. They're using the old emulsify+nanotech in their powders.
Funny they don't mention who the deal is with!
I suspect that edible nicotine has been one of their top priorities from before the ink was dry on the deal with Lexy.
A lot of companies are using an emulsifier like maltodextrin to dissolve the cannabis oil in liquid and then nanotech to speed up absorption into the bloodstream. This could potentialy carry the maltodextrin and other compounds straight to the brain. Safety testing is definitely called for.
https://timesofcbd.com/nanotechnology-and-cannabis/
I don't see any mention of safety concerns using Nanotechnology.
Competition
https://spotlightgrowth.com/index.php/2019/08/28/the-alkaline-water-company-inc-nasdaq-wter-climbs-23-after-entering-into-supply-agreement-to-expand-cbd-infused-product-line/
Centuria sells powdered CBD, nano-ized they claim. Their full-spectrum oil comes with propylene glycol if you want, how organic is that?
https://centuriafoods.com/wholesale/
"Among the three primary cannabis licensed businesses – cultivation, retail and infused products – the latter is the least understood and the most complex, offers the most options for branding and specialization, and has the most nebulous regulatory structure. In addition, the science involved is complex, the potential to incur financial loss is great, and compliance is compounded by food, manufacturing and Environmental Health and Safety regulations."
http://www.cannabisindustryinstitute.com/conference-home/
We're way ahead on regulations and safety testing.
https://business.financialpost.com/sponsored/sponsored-cannabis/the-elephant-in-the-dispensary-why-cannabis-beverage-isnt-big-business-yet
Anonymous
Trading in LXX this month seems to be dominated by the action of Anonymous. Out of 1,060,475 shares traded so far, almost half (479,894) were sold by Anonymous, with purchases of 318,275. That leaves them net +161,619.
Smells like a High-Frequency Trader grinding this stock for fractions.
If you want to know what exactly is in your ChrgD+ go the site https://chrgd.life/ and enter the last 5 digits of your product code into the space provided to see the complete analysis.
https://chrgd.life/wp-content/uploads/2019/05/ProVerde-PRC-Chrgd-Batch-Run-1-Lot-19094-Group-1.pdf
Yes, in Canada it's postal code, US is Zip