Nabis Warns It Is Defaulting On Payments

Nabis Holdings Inc. (CSE: NAB) (OTC: NABIF) reported retail revenue for the quarter ending June 30, 2020, was $3,987,777. The cost of goods sold for the same periods was $2,144,880 and gross profit was $1,842,897 or 46.2% for the three month period.

Nabis reported that its basic and diluted loss per share for the quarter ending June 30, 2020, was a loss of $0.02 compared to a loss of $0.04.

“We are very pleased with the progress our team has made at our Emerald dispensary, in Phoenix, Arizona,” commented Mark Krytiuk, COO. “Our results speak for themselves. Since October we have been able to double top line monthly revenue and our profit margins have seen double-digit increases. We expect to see further improvements as our Infusion Edibles line is fully relaunched. It is definitely an exciting time to be in Cannabis in the State of Arizona.”

Going Concern

The company did disclose that it has incurred losses and has had negative cash flows from operations from inception that have primarily been funded through financing activities. Nabis said it will need to raise additional capital during the next twelve months and beyond to support current operations and planned development. As of June 30, 2020, the company said it had a working capital deficiency of $14,811,051 and an accumulated deficit of $38,859,180. Of the total mortgages outstanding on June 30, 2020, $4,609,011 was due on August 31, 2020.

Nabis said it will not make the August 31, 2020 principal payment and are in discussions with the mortgage holder to either extend the payment due date, failing which, default proceedings are expected to commence. On June 30, 2020, the company did not make the quarterly interest payment accrued on the convertible debentures as a result of a Force Majeure event as set out in the convertible debenture trust indenture. These factors indicate the existence of a material uncertainty that may cast significant doubt as to the Company’s ability to continue as a going concern. Management intends to finance operating costs over the next twelve months with cash on hand, through the private placement of common shares, issuance of loans, and convertible loans.

The post Nabis Warns It Is Defaulting On Payments appeared first on Green Market Report.