Captor Cap Corp. (CPTR)

[JohnCM]

Hanging tough!

Captor Capital Reports Revenues of $2.1 Million in Unaudited Interim Financial Statements for the Three Months Ended December 31, 2019

Press Release
03/02/2020

TORONTO, March 02, 2020 (GLOBE NEWSWIRE) -- Captor Capital Corp. (CSE: CPTR; FRANKFURT: NMV; STUTTGART: NMVA; USOTC: CPTRF), ("Captor" or the "Company"), an integrated cannabis company, today released its interim financial statements and quarterly MD&A for the three months ended December 31, 2019.

The past 12 months have seen the Company successfully navigate several challenges, which include completing a change in business to become a cannabis operating company, redefining its operating strategy for the near and long term and concluding the onerous regulatory framework process to complete its acquisitions. The company is now focused on maximizing revenues and profit margins at its CHAI Cannabis Co. dispensary network, while moving closer towards profitability at a corporate level by continuing the drive to reduce costs.

During the quarter ended December 31, 2019, the Company’s dispensary network had sales of $2,111,949. For the nine months ended December 31, 2019, The Company had sales of $8,912,010. As of December 31, 2019, the Company had a consolidated cash balance of $23,813,319.

Management Commentary

As we enter a new decade, the Company has been able to achieve a solid foothold in the retail sector via its acquisitions of the Chai branded dispensaries in Santa Cruz and Castroville. These acquisitions provided a geographic base and operating cash flow to the Company. Furthermore, the Company successfully divested itself of its MedMen managed stores for US$31 million equivalent in MedMen shares.

There was also progress with the construction of the Mellow manufacturing and distribution facility, with the goal of near term commissioning. The Company also made operational its direct to consumer delivery service whilst maintaining a strong balance sheet with good cash reserves.

The new fiscal year will see the Company seeking to improve its current operations and leverage its strong balance sheet position to acquire assets with direct synergies. The Company is singularly focused on a mission to improve profitability by reducing costs while implementing low capital methods of maximizing current revenue streams and exploring low capital investment options to create new revenue streams.

Captor is simultaneously seeking to create product brands that are known by its customers as having a premium and consistent quality and improve its already strong customer retail experience based on a concept of “best in class” customer experience whether via its bricks and mortar retail stores or its direct to consumer delivery service. To achieve this, the primary mandate of the company is to acquire profitable, established cannabis focused companies that require capital to scale, or undervalued assets that reduce the capital needed from a replacement or purchase cost standpoint

Captor Strategy

Newly targeted acquisitions will be selected based off synergy with current existing brands or licenses, location, operational structure, and licensing regulations. Upon the completion of any transactions, the newly acquired assets will be directly supported by Captor and integrated into the Captor family of brands. In certain situations, that will mean expanding production capacities, increasing retail floor space, applying for additional add-on licenses, or restructuring the existing management of the licenses to become more efficient.

The current market focus is in California as it is the biggest and most mature of the recreational cannabis markets in the US right now with a favorable licensing structure. As previously mentioned, Captor is continuing to assemble a team of experienced operators and managers to aid in expanding its geographical footprint.