Ann: Preliminary Final Report, page-7

From report: Group set to have a record year in revenue? Sounds like any other business dealing with a covid hit and recovering?? At least they have income and repeat orders. And still to see if the new otc rules for cbd at chemists will have any impact?

Q1 2021 commenced with record sales and Purchase Orders and the Group is set to have a record year in revenue. Total
expenses increased substantially over the previous year, with the main reasons being the significant non-cash expenses
attributable to: the settlement in full of all convertible notes; the loss on disposal of the Company’s 74% share in the Israeli
joint venture; the impairment of its operations in Canada and Switzerland and the issue of equity instruments in lieu of cash
in the settlement of operating expenses. These were one-off costs associated with extinguishing the debt facilities the
Company had used over the past 24 Months.
Having now tidied its balance sheet with the repayment of all convertible notes and reduction of some debt, Creso is now
well positioned to capitalise on strong revenue growth through the Group. The strong share price performance in the
second half of the year has allowed the Company to raise funds via “in the money” options and has helped with cash flow
requirements substantially. This is a result of:
- On-going implementation of strategic initiatives
- Favourable global regulatory policy
- Appointment of world renowned Cannabis expert Bruce Linton as senior advisor
- Strong revenue growth in Mernova
Unlike many other companies in the cannabis sector, the Company ended the year in a stronger financial position, having
more than doubled its cash reserves compared to 2019. The board is pleased with the achievements over the last 12 months
notwithstanding the challenges of Covid-19 , and its encouraged by the positive signs of recovery it has experienced in the
last 6 months, and looks forward to continuing to update shareholders in due course.