EDMONTON, Alberta, July 08, 2019 (GLOBE NEWSWIRE) — Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture: RTI; OTCQX: RDDTF), a global innovator in the industrial scale extraction and downstream processing of premium grade cannabis and hemp derivatives, has released its financial results for the fiscal year ended March 31, 2019. The audited Financial Statements and Management’s Discussion and Analysis (the “MD&A”) for the fiscal year ended March 31, 2019 are available at SEDAR.com, under the Company’s profile.
Key Financial Highlights:
As at March 31, 2019, the Company’s cash balance totalled CAD $31,752,852, representing an increase of $9,897,548 from March 31, 2018. This increase in cash is a result of equity placements the Company closed on July 31, 2018, for aggregate proceeds of CAD $34,202,759.
The proceeds of these financings have been used to upgrade the Company’s main Edmonton extraction lines for dedicated cannabis and hemp extraction and purification and are being used for additional capacity in North America and Europe, as well as for general corporate and working capital purposes.
Fiscal Year 2019 Corporate Highlights:
For background information and further details on the following Corporate Highlights, please refer to the Company’s MD&A for the fiscal year ended March 31, 2019.
Receipt of Licenses from Health Canada:
On February 4, 2019 Radient announced it had received its Standard Processing License from Health Canada under the new Cannabis Act. Radient’s preexisting Dealer’s License for its Research & Development Laboratory was also successfully transitioned under the new regulations. The receipt of these licenses was a significant milestone for the Company, enabling it to commence the extraction and downstream processing of cannabinoids from cannabis and hemp biomass for the purpose of sale.
Acquisition of Real Estate Assets:
The strategic purchase of these properties from 1631807 Alberta Ltd and the adjacent land provided the Company with controlled access to its production facility, as well as necessary expansion capacity, allowing for increased expected future revenue generation.
Increased Throughput Capacity: Canada and Germany:
In August 2018 Radient completed construction of its “Edmonton I” extraction line, dedicated to the industrial scale extraction and downstream processing of cannabis biomass.
During fiscal 2019 the Company commenced the construction of its additional high throughput cannabinoid extraction and downstream processing facilities in Edmonton and Germany. Upon completion of the construction of the Canadian and German facilities, which is expected in the second half of calendar 2020, Radient will have an estimated combined total annual throughput capacity of more than 600,000 kg/year of cannabis, and more than 6 million kg/year of hemp.
Radient provided an update on the progress of these facilities, as well as the expected annual throughput capacities of each facility in a press release dated June 20, 2019.
Commencement of Commercial-Scale Cannabinoid Extraction:
In March 2019, the Company announced it had begun the commercial scale extraction of cannabinoids from cannabis biomass using its patented, proprietary extraction and downstream processing platform at its Edmonton I facility. Post-fiscal 2019, in May 2019, Aurora Cannabis Inc. (“Aurora”) (TSX: ACB; NYSE: ACB) and Radient announced that Radient had successfully completed its first commercial delivery of cannabis derivatives to Aurora.
Nicotine Reduction in Tobacco:
On March 16, 2018, the FDA issued an Advanced Notice of Proposed Rulemaking (“ANPRM”) to explore a product standard to set the maximum nicotine level for cigarettes, so that tobacco products are minimally addictive or non-addictive.
Radient filed a provisional patent application with the United States Patent and Trademark Office (the “USPTO”) on June 5, 2018 for a proven method of significantly reducing nicotine levels in tobacco, while mostly maintaining the appearance, taste and smell of the tobacco, via Radient’s proprietary continuous-flow extraction technology.
Acquisition of Cannabis Biomass for Future Revenue Generation:
To capitalize on growing demand for cannabinoid derivatives and ingredients, Radient is leveraging its advantages in extraction throughput, scale, and yield to manufacture a spectrum of cannabinoid-based products, ranging from crude extracts to premium formulations and ingredients.
In this regard, Radient announces today that it has entered into short term agreements to purchase large-scale quantities of dried cannabis biomass, valued at approximately CAD $19.5 million. Upon receipt of the biomass, the Company will process its inventory of cannabis at its Edmonton I facility into extracts and intermediate products for sale. The Company expects this will have a meaningful positive impact on revenues reported at the end of fiscal Q2 2020 and/or fiscal Q3, 2020.
Expansion of the Company’s Intellectual Property Portfolio:
The Company has now started the process of replacing the 58 provisional patent applications it has so far filed with the United States Patent and Trademark Office (the “USPTO”) with full Patent Cooperation Treaty (“PCT”) filings with the World Intellectual Property Organization (“WIPO”). This will allow for eventual nationalization of the patents in appropriate PCT jurisdictions, including for example Canada, the USA, Australia, and various EU countries. Radient is on track to replace the provisional applications by the deadline conversion dates in order to maintain the priority dates of the original filings.
Targeted Nicotine Extraction Marketing Strategy:
In March 2019, Radient announced the hire of two former British American Tobacco (“BAT”) executives as senior executives of the Company. With their assistance, the Company has developed and is executing a marketing strategy that targets tobacco companies, the FDA, advocacy groups and equipment manufacturers to ensure acceptance of the Company’s technology in the industry as a viable industrial nicotine reduction technology.
Advance Notice By-Law:
Radient also announces that its Board of Directors has approved the adoption of an advance notice by-law (the “Advance Notice By-Law”) establishing a framework for advance notice of nominations of directors by shareholders of Radient.
The Advance Notice By-Law is similar to requirements adopted by many other Canadian public companies and was adopted to facilitate an orderly and efficient director nomination process by ensuring that all shareholders receive adequate notice of director nominations and sufficient information in respect of all nominees so that the proposed nominees’ qualifications and suitability as directors can be evaluated and an informed vote cast for the election of directors.
Among other things, the Advance Notice By-Law fixes a deadline by which shareholders must submit a notice of director nominations to the Company prior to any annual general or special meeting of shareholders where directors are to be elected and sets forth the information that a shareholder must include in the notice for it to be valid.
The Advance Notice By-Law is effective immediately and will be placed before shareholders for approval, confirmation and ratification at the next annual and special meeting of shareholders of the Company to be held in September 2019.
The full text of the Advance Notice By-Law is available under Radient’s profile at www.sedar.com.
Radient Technologies provides industrial-scale manufacturing solutions for premium natural ingredients and products. Utilizing its patented MAP™ extraction technology, Radient delivers superior customer outcomes in terms of ingredient purity, yield, and cost, serving global market leaders in industries such as foods & beverages, nutraceuticals, pharmaceuticals, cosmetics, and personal care. Since 2016, Radient has expanded its offerings to enter the cannabinoids market, using its MAP™ platform to provide premium ingredients that contain a full range of cannabinoid and terpene profiles. Please visit www.radientinc.com for more information.
SOURCE: Radient Technologies Inc.