29 January 2021 QUARTERLY ACTIVITIES REPORT – 31 DECEMBER 2020 Regulatory shifts and broadened global footprint underpin growth 740% increase in customer receipts on previous quarter Highlights: • Cash receipts from customers of A$709,000 highlight a 740% increase on the prior quarter • Board & Management extremely pleased with the purchase orders received during the quarter – on track to deliver increased POs in Q1 2021 • Cash receipts in Q1 2021 expected to exceed previous quarter receipts • Recent regulatory shifts around cannabis continue to unlock significant opportunities Mernova Medicinal Inc. (100% CPH): • Supply agreement with Ontario Cannabis Retail Corporation marked entry into Canada’s largest recreational cannabis market • Recurring revenue profile continues to build – repeat POs secured and delivered • Discussions with several world-leading distributors and resellers are well progressed – potential agreements are expected to considerably bolster sales Nutraceutical product line - cannaQIX®: • Second purchase order from Pharma Dynamics valued at CHF220,000 (~A$320,0001) secured – now delivered and booked as sales • Heads of Agreement with Martin & Pleasance unlocks Australia and New Zealand markets Animal Health Product Line - anibidiol®: • anibidiol® becomes the first approved CBD hemp-based complementary feed for pets in Latin America • Retail demand in Europe continues to grow - four purchase orders secured • Product portfolio expansion initiatives underway to grow sector footprint Corporate Developments: • Leading cannabis executive and Canopy Growth Corporation founder Bruce Linton appointed as strategic advisor • Successful capital raising of A$8.992 million from institutional, professional, and sophisticated investors • All convertible note structures have been completely extinguished, cleaning a significant part of the balance sheet and capital structure • Cash at bank at quarter end totalled $6 million with a further $2.2m received from the exercise of share options post the quarter end
Well dare I say, CPH looks in good shape - definitely a long term hold for me. Could see positive movement today!
CPH Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
