| | |
Per Common Share
|
| |
Total
|
| ||||||
Initial public offering price
|
| | | $ | 4.00 | | | | | $ | 16,000,000 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 0.28 | | | | | $ | 1,120,000 | | |
Proceeds to us (before expenses)
|
| | | $ | 3.72 | | | | | $ | 14,880,000 | | |
| | |
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| | | | F-1 | | |
| | |
As of 30 September, 2021
|
| |||||||||||||||
| | |
Actual(1)
|
| |
Pro Forma(1)
|
| |
Pro Forma,
as Adjusted(2) |
| |||||||||
Cash and cash equivalents
|
| | | $ | 959,832 | | | | | $ | 6,223,152 | | | | | $ | 20,466,601 | | |
Debt: | | | | | | | | | | | | | | | | | | | |
Total current liabilities
|
| | | $ | 11,313,959 | | | | | $ | 3,304,188 | | | | | $ | 3,304,188 | | |
Total non-current liabilities
|
| | | $ | 3,405,581 | | | | | $ | 3,405,581 | | | | | $ | 3,405,581 | | |
Total debt:
|
| | | $ | 14,719,540 | | | | | $ | 6,709,769 | | | | | $ | 6,709,769 | | |
Shareholders’ equity: | | | | | | | | | | | | | | | | | | | |
Common Shares (29,903,090 issued, unlimited
authorized) |
| | | $ | 251,775 | | | | | $ | 29,578,469 | | | | | $ | 43,821,917 | | |
Underwriter fee arrangement warrants issued
|
| | | | — | | | | | | — | | | | | | — | | |
Retained earnings (accumulated deficit)
|
| | | $ | (9,683,353) | | | | | $ | (12,607,730) | | | | | $ | (12,607,730) | | |
Reserves
|
| | | $ | 21,053 | | | | | $ | 21,053 | | | | | $ | 21,053 | | |
Other comprehensive income
|
| | | $ | 196,568 | | | | | $ | (12,930,870) | | | | | $ | (12,930,870) | | |
Total shareholders’ equity (deficiency)
|
| | | $ | (9,213,957) | | | | | $ | 4,060,922 | | | | | $ | 18,304,371 | | |
Total capitalization
|
| | | $ | 5,505,583 | | | | | $ | 10,770,691 | | | | | $ | 25,014,140 | | |
|
Initial public offering price per Common Share
|
| | | $ | 4.00 | | | | | |
|
Net tangible book value per Common Share before this offering (as of September 30,
2021) |
| | | $ | (1.89) | | | | | |
|
Increase in net tangible book value per Common Share attributable to existing shareholders due to the issuance of Common Shares after September 30, 2021
|
| | | $ | 1.68 | | | | | |
|
Pro forma net tangible book value per Common Share before this offering (as of September 30, 2021)
|
| | | $ | (0.21) | | | | | |
|
Increase in net tangible book value per Common Share attributable to conversion of the Debenture offering
|
| | | $ | 0.28 | | | | | |
|
Increase in net tangible book value per Common Share attributable to purchasers in this offering
|
| | | $ | 0.48 | | | | | |
|
Pro forma, as adjusted net tangible book value per Common Share immediately after this offering
|
| | | $ | 0.55 | | | | | |
|
Dilution in pro forma, as adjusted net tangible book value per Common Share to purchasers in
this offering |
| | | $ | 3.45 | | | | | |
| | |
Common Shares
|
| |
Total Consideration
|
| ||||||||||||||||||||||||
|
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| |
Weighted
Average Price Per Share |
| |||||||||||||||||
Existing shareholders
|
| | | | 24,903,090 | | | | | | 86.16% | | | | | $ | 31,751,588 | | | | | | 66.49% | | | | | $ | 1.28 | | |
Purchasers in this offering
|
| | | | 4,000,000 | | | | | | 13.84% | | | | | $ | 16,000,000 | | | | | | 33.51% | | | | | $ | 4.00 | | |
Total
|
| | | | 28,903,090 | | | | | | 100.00% | | | | | $ | 47,751,588 | | | | | | 100.00% | | | | | $ | 1.65 | | |
| | |
July 16, 2021
(Inception) to August 31, 2021 |
| |||
Operating expenses: | | | | | | | |
Legal fees
|
| | | $ | 31,898 | | |
Total operating expenses
|
| | | | 31,898 | | |
Loss from operations
|
| | | | (31,898) | | |
Net and comprehensive loss
|
| | | $ | (31,898) | | |
| | |
Period Ended
August 31, |
| | | | |||
| | |
2021
|
| |
Change
|
| |||
Cash used in operating activities
|
| | | $ | 4,263 | | | |
Not Applicable
|
|
Cash used in investing activities
|
| | | $ | — | | | |
Not Applicable
|
|
Cash provided by financing activities
|
| | | $ | 250,001 | | | |
Not Applicable
|
|
| | |
July 16, 2021 (Inception) to
September 30, 2021 |
| |||
Operating expenses: | | | | | | | |
Accounting and audit fees
|
| | | $ | 16,822 | | |
Consultant fees
|
| | | | 32,904 | | |
Directors’ remuneration
|
| | | | 12,275 | | |
Legal fees
|
| | | | 39,474 | | |
Total operating expenses
|
| | | | 101,475 | | |
Other income: | | | | | | | |
Foreign exchange gains
|
| | | $ | 5,296 | | |
Total other income
|
| | | | 5,296 | | |
Net loss
|
| | | | (96,179) | | |
Other comprehensive loss
|
| | | | (102) | | |
Net and comprehensive loss
|
| | | $ | (96,281) | | |
| | |
Period Ended
September 30, |
| | | | |||
| | |
2021
|
| |
Change
|
| |||
Cash used in operating activities
|
| | | $ | (9,420) | | | |
Not Applicable
|
|
Cash used in investing activities
|
| | | $ | — | | | |
Not Applicable
|
|
Cash provided by financing activities
|
| | | $ | 254,227 | | | |
Not Applicable
|
|
| | |
Note
|
| |
July 1, 2020
(Inception) to December 31, 2020 |
| |||
Net sales
|
| | | | | | $ | — | | |
Net and Comprehensive loss
|
| | | | | | $ | — | | |
| | |
July 1, 2020
(Inception) to December 31, 2020 |
| |
Change
|
| ||||||
Cash used in operating activities
|
| | | $ | — | | | | | | Not Applicable | | |
Cash used in investing activities
|
| | | $ | — | | | | | | Not Applicable | | |
Cash provided by financing activities
|
| | | $ | 1,477 | | | | | | Not Applicable | | |
| | |
January 1, 2021 to
September 30, 2021 |
| |
July 1, 2020 (Inception) to
September 30, 2020 |
| ||||||
Net sales
|
| | | $ | — | | | | | | — | | |
Other comprehensive income: | | | | | | | | | | | | | |
Foreign exchange loss
|
| | | | (81) | | | | | | — | | |
Net and comprehensive loss
|
| | | $ | (81) | | | | | | — | | |
| | |
January 1, 2021 to
September 30, |
| |
July 1, 2020
(Inception) to September 30, |
| | | | | | | |||
| | |
2021
|
| |
2020
|
| |
Change
|
| ||||||
Cash used in operating activities
|
| |
$—
|
| | | $ | — | | | | | | Nil | | |
Cash used in investing activities
|
| |
$—
|
| | | $ | — | | | | | | Nil | | |
Cash provided by financing activities
|
| |
$ —
|
| | | $ | 1,477 | | | | | $ | (1,477) | | |
| | |
Note
|
| |
August 4, 2021
(Inception) to August 31, 2021 |
| |||
Net sales
|
| | | | | | $ | — | | |
Comprehensive loss
|
| | | | | | $ | — | | |
| | |
Period Ended
August 31, |
| | | | |||
| | |
2021
|
| |
Change
|
| |||
Cash used in operating activities
|
| | | $ | — | | | |
Not Applicable
|
|
Cash used in investing activities
|
| | | $ | — | | | |
Not Applicable
|
|
Cash provided by financing activities
|
| | | $ | 138 | | | |
Not Applicable
|
|
| | |
August 4, 2021
(Inception) to September 30, 2021 |
| |||
Net sales
|
| | | $ | — | | |
Foreign exchange translation through other comprehensive loss
|
| | | | (3) | | |
Net and Comprehensive loss
|
| | | $ | (3) | | |
| | |
Period Ended
September 30, |
| | | | | | | |||
| | |
2021
|
| |
Change
|
| ||||||
Cash used in operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | | | | $ | — | | | | | | NotApplicable | | |
Cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | | | | $ | — | | | | | | NotApplicable | | |
Cash provided by financing activities
|
| | | $ | 138 | | | | | | NotApplicable | | |
| | |
Nine Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year ended
December 31, 2019 |
| ||||||||||||
Sales
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Cost of sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Gross profit
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Amortization and depreciation
|
| | | | 231,427 | | | | | | 173,971 | | | | | | 248,743 | | | | | | 198,824 | | |
Consulting and professional fees
|
| | | | 504,866 | | | | | | 454,721 | | | | | | 701,985 | | | | | | 365,641 | | |
Biological Assets costs
|
| | | | — | | | | | | — | | | | | | 58,429 | | | | | | — | | |
Short term accommodation expense
|
| | | | — | | | | | | 31,912 | | | | | | 45,482 | | | | | | 26,269 | | |
Office expenses
|
| | | | 33,216 | | | | | | 14,171 | | | | | | 26,874 | | | | | | 13,116 | | |
Personnel expenses
|
| | | | 955,032 | | | | | | 223,345 | | | | | | 374,900 | | | | | | 100,256 | | |
Travel expenses
|
| | | | 57,063 | | | | | | 4,789 | | | | | | 5,154 | | | | | | 30,582 | | |
General & Administration expenses
|
| | | | 1,317,292 | | | | | | 163,654 | | | | | | 201,768 | | | | | | 166,515 | | |
Loss from operations
|
| | | | (3,098,896) | | | | | | (1,066,563) | | | | | | (1,663,334) | | | | | | (901,203) | | |
Interest income
|
| | | | 25,782 | | | | | | 9,529 | | | | | | 10,187 | | | | | | 399 | | |
Interest expenses
|
| | | | (393,186) | | | | | | (487,069) | | | | | | (645,162) | | | | | | (493,807) | | |
Net loss before income tax
|
| | | | (3,466,300) | | | | | | (1,544,103) | | | | | | (2,298,310) | | | | | | (1,394,611) | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Nine Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year ended
December 31, 2019 |
| ||||||||||||
Net Loss for the year
|
| | | | (3,466,300) | | | | | | (1,544,103) | | | | | | (2,298,310) | | | | | | (1,394,611) | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | | | |||||
Foreign currency translation
|
| | | | 83,016 | | | | | | 604,902 | | | | | | 150,742 | | | | | | (42,565) | | |
Total comprehensive loss for the year
|
| | | | (3,383,284) | | | | | | (939,201) | | | | | | (2,147,568) | | | | | | (1,437,176) | | |
Basic and diluted loss per ordinary share
|
| | | | (16) | | | | | | (6.95) | | | | | | (9.66) | | | | | | (33.26) | | |
Weighted average number of ordinary shares outstanding
|
| | | | 222,212 | | | | | | 222,212 | | | | | | 222,212 | | | | | | 43,206 | | |
|
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Change
|
| |||||||||
Cash used in operating activities
|
| | | $ | (1,353,959) | | | | | $ | (660,007) | | | | | $ | (693,952) | | |
Cash used in investing activities
|
| | | $ | (432,203) | | | | | $ | (677,145) | | | | | $ | (244,942) | | |
Cash provided by financing activities
|
| | | $ | 1,032,008 | | | | | $ | 2,116,312 | | | | | $ | (1,084,304) | | |
| | |
Nine Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2021 |
| |
Change
|
| |||||||||
Cash used in operating activities
|
| | | $ | (2,774,139) | | | | | $ | (690,371) | | | | | $ | (2,083,768) | | |
Cash used in investing activities
|
| | | $ | (554,858) | | | | | $ | (381,159) | | | | | $ | (173,699) | | |
Cash provided by financing activities
|
| | | $ | 4,070,078 | | | | | $ | 239,864 | | | | | $ | 3,830,214 | | |
Contractual Obligation
|
| |
Less than
One Year |
| |
1 – 5 Years
|
| |
Over 5 Years
|
| |||||||||
Land and buildings
|
| | | $ | 283,976 | | | | | $ | 1,135,903 | | | | | $ | 3,762,677 | | |
Contractual Obligation
|
| |
Less than
One Year |
| |
1 – 5 Years
|
| |
Over 5 Years
|
| |||||||||
Land and buildings . . . . . . . . . . . . . . . . . . . . . . . . . . .
|
| | | $ | 45,662 | | | | | $ | 1,369,863 | | | | | $ | 3,150,685 | | |
Presented in $
|
| |
Note
|
| |
Nine Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| ||||||||||||
Sales
|
| | | | 17,359 | | | | | | 1,788 | | | | | | 2,062 | | | | | | — | | | | | |
Cost of Sales
|
| | | | (11,469) | | | | | | (1,531) | | | | | | (1,809) | | | | | | — | | | | | |
Presented in $
|
| |
Note
|
| |
Nine Months Ended
September 30, 2021 |
| |
Nine Months Ended
September 30, 2020 |
| |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| ||||||||||||
Gross Profit
|
| | | | 5,890 | | | | | | 257 | | | | | | 253 | | | | | | — | | | | | |
General & administrative expenses
|
| | | | (93,650) | | | | | | (514) | | | | | | (1,101) | | | | | | (32) | | | | | |
License costs
|
| | | | (1,267) | | | | | | (894) | | | | | | (1,491) | | | | | | — | | | | | |
Salaries and wages
|
| | | | (339,556) | | | | | | — | | | | | | — | | | | | | — | | | | | |
Consulting and professional fees
|
| | | | (565,614) | | | | | | — | | | | | | (31) | | | | | | — | | | | | |
Loss from operating activities
|
| | | | (994,197) | | | | | | (1,151) | | | | | | (2,623) | | | | | | (32) | | | | | |
Finance income
|
| | | | 50 | | | | | | 1 | | | | | | 1 | | | | | | 2 | | | | ||
Finance expenses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Foreign exchange through profit and loss
|
| | | | 35,911 | | | | | | — | | | | | | — | | | | | | — | | | | ||
Other income
|
| | | | 54 | | | | | | 136 | | | | | | 108 | | | | | | — | | | | ||
Net Profit / (Loss)
|
| | | | (958,182) | | | | | | (1,014) | | | | | | (2,261) | | | | | | (30) | | | | | |
Exchange differences on foreign
currency translation |
| | | | 5,678 | | | | | | (22) | | | | | | (116) | | | | | | (1) | | | | ||
Comprehensive Profit / (Loss)
|
| | | | (952,504) | | | | | | (1,036) | | | | | | (2,377) | | | | | | (31) | | | | | |
Basic and dilutive loss per ordinary share
|
| | | | (476,252) | | | | | | (518.20) | | | | | | (1,189) | | | | | | (15.50) | | | | | |
Weighted average number of ordinary shares outstanding
|
| | | | 2 | | | | | | 2 | | | | | | 2 | | | | | | 2 | | | | | |
|
| | |
Year Ended
December 31, |
| |
Change
|
| ||||||||||||
|
2020
|
| |
2019
|
| ||||||||||||||
Cash provided by operating activities
|
| | | $ | 1,491 | | | | | $ | 17,677 | | | | | $ | (16,186) | | |
Cash used in investing activities
|
| | | $ | — | | | | | $ | (15,625) | | | | | $ | (15,625) | | |
Cash provided by financing activities
|
| | | $ | — | | | | | $ | 2 | | | | | $ | (2) | | |
| | |
Nine Months Ended
September 30, |
| | | | | | | | | | |||||||||
| | |
2021
|
| |
2020
|
| |
Change
|
| | |||||||||||
Cash used by operating activities
|
| | | $ | (785,048) | | | | | $ | (2,862) | | | | | $ | (782,186) | | | | ||
Cash used in investing activities
|
| | | $ | — | | | | | $ | (14,779) | | | | | $ | (14,799) | | | | ||
Cash provided by financing activities
|
| | | $ | 969,282 | | | | | $ | 18,140 | | | | | $ | 951,142 | | | |
Name
|
| |
Position
|
| |
Age
|
|
Louisa Mojela | | |
Executive Chairman and Director
|
| |
65
|
|
Tejinder Virk | | |
Chief Executive Officer and Director
|
| |
40
|
|
Aslihan Akkar-Schenkl | | |
President
|
| |
43
|
|
Trevor Scott | | |
Chief Financial Officer
|
| |
43
|
|
Philip van den Berg(1) | | |
Director
|
| |
63
|
|
Charles Kié(2) | | |
Director
|
| |
58
|
|
Gila Jones(2) | | |
Director
|
| |
40
|
|
Gugulethu Dingaan(2) | | |
Director
|
| |
46
|
|
Bridget Baker(2) | | |
Director
|
| |
61
|
|
| | |
Salary
($) |
| |
Stock
awards ($) |
| |
Option
awards ($) |
| |
Non-equity
incentive plan compensation ($) |
| |
Change in
pension value and nonqualified deferred compensation earnings |
| |
All other
compensation ($) |
| |
Total
($) |
| |||||||||||||||||||||
Louisa Mojela (Executive
Chairman) |
| | | | 270,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,312 | | | | | | 277,312 | | |
Tejinder Virk (Chief Executive Officer)
|
| | | | 337,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,798 | | | | | | 347,298 | | |
Charles Kié* (Lead Independent Director*)
|
| | | | 77,590 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 77,590 | | |
Philip Van Den Berg (Non Executive Director)
|
| | | | 25,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,000 | | |
Trevor Scott* (Chief Financial Officer)
|
| | | | 231,099 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,260 | | | | | | 236,359 | | |
Dr. Aslihan Akkar-Schenkl (President)
|
| | | | 59,508 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,079 | | | | | | 64,587 | | |
Total | | | | | 1,000,697 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 27,440 | | | | | | 1,028,146 | | |
Name of Beneficial Owner
|
| |
Number of
Common Shares Beneficially Owned |
| |
Percentage of Common Shares
Beneficially Owned(1) |
| | ||||||||||||||
|
Before
Offering |
| |
After
Offering |
| | ||||||||||||||||
Executive Officers and Directors: | | | | | | | | | | | | | | | | | | | | | ||
Louisa Mojela, Executive Chairman and Director
|
| | | | 2,855,602 | | | | | | 11.5% | | | | | | 9.9% | | | | ||
Tejinder Virk, Chief Executive Officer and Director
|
| | | | 1,875,602 | | | | | | 7.5% | | | | | | 6.5% | | | | ||
Dr. Aslihan Akkar-Schenkl, President
|
| | | | — | | | | | | * | | | | | | * | | | | ||
Trevor Scott, Chief Financial Officer
|
| | | | 40,000 | | | | | | * | | | | | | * | | | | ||
Philip van den Berg, Director(2)
|
| | | | — | | | | | | * | | | | | | * | | | | ||
Charles Kié, Director
|
| | | | 29,200 | | | | | | * | | | | | | * | | | | ||
Gila Jones, Director
|
| | | | 20,000 | | | | | | * | | | | | | * | | | | ||
Gugulethu Dingaan, Director
|
| | | | 4,000 | | | | | | * | | | | | | * | | | | ||
Bridget Baker, Director
|
| | | | — | | | | | | * | | | | | | * | | | | ||
All executive officers and directors as a group
|
| | | | 4,824,404 | | | | | | 19.4% | | | | | | 16.7% | | | | ||
5% or more Shareholders: | | | | | | | | | | | | | | | | | | | | | | |
Halo Collective Inc.(3)(4)
|
| | | | 12,669,022 | | | | | | 50.9% | | | | | | 43.8% | | | | ||
1306077 B.C. LTD.(5)
|
| | | | 2,100,000 | | | | | | 8.4% | | | | | | 7.3% | | | | ||
Raj Beri(6)
|
| | | | 1,781,822 | | | | | | 7.2% | | | | | | 6.2% | | | |
Underwriters
|
| |
Number of Shares
|
| |||
Boustead Securities, LLC
|
| | | | 2,985,000 | | |
Valuable Capital Limited
|
| | | | 1,015,000 | | |
Total
|
| | | | 4,000,000 | | |
| | |
Per Share
|
| |
Total Without
Exercise of Over-Allotment Option |
| |
Total With
Exercise of Over-Allotment Option |
| |||||||||
Public offering price
|
| | | $ | 4.00 | | | | | $ | 16,000,000 | | | | | $ | 18,400,000 | | |
Underwriting discounts (7%)(1)
|
| | | $ | 0.28 | | | | | $ | 1,120,000 | | | | | $ | 1,288,000 | | |
Proceeds, before expenses, to us
|
| | | $ | 3.72 | | | | | $ | 14,880,000 | | | | | $ | 17,112,000 | | |
Non-accountable expense allowance (0.5%)
|
| | | $ | 0.02 | | | | | $ | 80,000 | | | | | $ | 92,000 | | |
Description
|
| |
Amount
|
| |||
U.S. Securities and Exchange Commission registration fee
|
| | | $ | 2,782 | | |
Financial Industry Regulatory Authority filing fee
|
| | | $ | 3,269 | | |
Nasdaq Capital Market entry and listing fee
|
| | | $ | 75,000 | | |
Accounting and Audit fees and expenses
|
| | | $ | 160,500 | | |
Legal fees and expenses
|
| | | $ | 250,000 | | |
Printing expenses
|
| | | $ | 15,000 | | |
Miscellaneous
|
| | | $ | 50,000 | | |
Total
|
| | | $ | 556,551 | | |
| | |
Page
|
| |||
AKANDA CORP. | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-9 | | | |
CANNAHEALTH LTD. | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-16 | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | | |
BOPHELO HOLDINGS LTD | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | | |
| | | | F-30 | | | |
BOPHELO BIO SCIENCE AND WELLNESS (PTY) LTD | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-36 | | | |
| | | | F-37 | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | |
| | |
Page
|
| |||
CANMART LTD | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-56 | | | |
| | | | F-57 | | | |
| | | | F-58 | | | |
| | | | F-59 | | | |
| | | | F-60 | | | |
Unaudited Pro Forma Condensed Combined Financial Statements of Akanda Corp. (Expressed in United States Dollars)
|
| | | | | | |
| | | | F-70 | | | |
| | | | F-71 | | | |
| | | | F-72 | | | |
| | | | F-73 | | | |
| | | | F-74 | | | |
| | | | F-75 | | | |
Audited Financial Statements of Akanda Corp. (Expressed in United States Dollars) | | | | | | | |
| | | | F-79 | | | |
| | | | F-80 | | | |
| | | | F-81 | | | |
| | | | F-82 | | | |
| | | | F-83 | | | |
| | | | F-84 | | | |
Audited Financial Statements of Cannahealth Limited (Expressed in United States Dollars) | | | | | | | |
| | | | F-91 | | | |
| | | | F-92 | | | |
| | | | F-93 | | | |
| | | | F-94 | | | |
| | | | F-95 | | | |
| | | | F-96 | | | |
Audited Financial Statements of Bophelo Holdings Ltd (Expressed in United States Dollars) | | | | | | | |
| | | | F-102 | | | |
| | | | F-103 | | | |
| | | | F-104 | | | |
| | | | F-105 | | |
| | |
Page
|
| |||
| | | | F-106 | | | |
| | | | F-107 | | | |
Audited Financial Statements of Bophelo Bioscience and Wellness (PTY) Ltd. for the Fiscal Years Ended December 31, 2020 and 2019 (Expressed in United States Dollars)
|
| | | | | | |
| | | | F-113 | | | |
| | | | F-114 | | | |
| | | | F-115 | | | |
| | | | F-116 | | | |
| | | | F-117 | | | |
| | | | F-118 | | | |
Audited Financial Statements of Canmart Ltd for the Fiscal Years Ended December 31, 2020 and 2019
(Expressed in United States Dollars) |
| | | | | | |
| | | | F-138 | | | |
| | | | F-139 | | | |
| | | | F-140 | | | |
| | | | F-141 | | | |
| | | | F-142 | | | |
| | | | F-143 | | |
| | |
Page
|
| |||
AKANDA CORP. | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-9 | | |
| | |
Note
|
| |
September 30,
2021 (Unaudited) |
| |
August 31,
2021 |
| |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | |
Cash, held in trust
|
| | | | | | | | | $ | 250,001 | | | | | | 250,001 | | |
Total Current Assets
|
| | | | | | | | | $ | 250,001 | | | | | | 250,001 | | |
Total Assets
|
| | | | | | | | | $ | 250,001 | | | | | | 250,001 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | | | | | | | $ | 92,055 | | | | | | 27,635 | | |
Loan from shareholder
|
| | | | | | | | | | 4,226 | | | | | | 4,263 | | |
Total Current Liabilities
|
| | | | | | | | | $ | 96,281 | | | | | | 31,898 | | |
Total Liabilities
|
| | | | | | | | | $ | 96,281 | | | | | | 31,898 | | |
Shareholders’ Equity | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | 5 | | | | | $ | 250,001 | | | | | | 250,001 | | |
Accumulated deficit
|
| | | | | | | | | | (96,179) | | | | | | (31,898) | | |
Accumulated other comprehensive loss
|
| | | | | | | | | | (102) | | | | | | — | | |
Total Shareholders’ Equity
|
| | | | | | | | | $ | 153,720 | | | | | | 218,103 | | |
Total Liabilities and Shareholders’ Equity
|
| | | | | | | | | $ | 250,001 | | | | | | 250,001 | | |
| | |
July 16, 2021 (Inception)
to September 30, 2021 |
| |||
Operating expenses: | | | | | | | |
Accounting and audit fees
|
| | | $ | 16,822 | | |
Consultant fees
|
| | | | 32,904 | | |
Directors’ remuneration
|
| | | | 12,275 | | |
Legal fees
|
| | | | 39,474 | | |
Total operating expenses
|
| | | | 101,475 | | |
Other income: | | | | | | | |
Foreign exchange gains
|
| | | $ | 5,296 | | |
Total other income
|
| | | | 5,296 | | |
Net loss
|
| | | | (96,179) | | |
Other comprehensive loss
|
| | | | (102) | | |
Net and comprehensive loss
|
| | | $ | (96,281) | | |
| | |
Note
|
| |
Share
Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Total
Shareholders’ Equity |
| |||||||||||||||
Inception, July 16, 2021
|
| | | | | | | | | $ | — | | | | | $ | — | | | | | | — | | | | | $ | — | | |
Share issuance
|
| | | | 5 | | | | | | 250,001 | | | | | | — | | | | | | — | | | | | | 250,001 | | |
Net loss
|
| | | | | | | | | | — | | | | | | (31,898) | | | | | | — | | | | | | (31,898) | | |
Balance, August 31, 2021
|
| | | | | | | | | $ | 250,001 | | | | | $ | (31,898) | | | | | | — | | | | | $ | 218,103 | | |
Net loss
|
| | | | | | | | | | — | | | | | | (64,281) | | | | | | (102) | | | | | | (64,383) | | |
Balance, September 30, 2021
|
| | | | | | | | | $ | 250,001 | | | | | $ | (96,179) | | | | | | (102) | | | | | $ | 153,720 | | |
| | |
Note
|
| |
July 16, 2021
(Inception) to September 30, 2021 |
| |||
Cash flows from Operating Activities | | | | | | | | | | |
Net loss
|
| | | | | | $ | (96,179) | | |
Foreign exchange movements through profit and loss
|
| | | | | | | (5,296) | | |
Increase in accounts payable
|
| | | | | | | 92,055 | | |
Cash used in operating activities
|
| | | | | | $ | (9,420) | | |
Cash flows from Financing Activities | | | | | | | | | | |
Proceeds from share issuances
|
| | | | | | $ | 250,001 | | |
Loan received from shareholder
|
| | | | | | | 4,226 | | |
Cash flows provided by financing activities
|
| | | | | | $ | 254,227 | | |
Effect of foreign exchange translation
|
| | | | | | | 5,194 | | |
Change in cash during the period
|
| | | | | | $ | 250,001 | | |
Cash at beginning of period
|
| | | | | | | — | | |
Cash at end of period
|
| | | | | | $ | 250,001 | | |
| | |
Number of
common shares |
| |
Share capital
2021 |
| ||||||
Inception at July 16, 2021
|
| | | | — | | | | | | — | | |
Shares issued to founders
|
| | | | 5,626,806 | | | | | | 1 | | |
Shares issued- August 26, 2021
|
| | | | 468,900 | | | | | | 250,000 | | |
Issued and outstanding at September 30, 2021
|
| | | | 6,095,706 | | | | | $ | 250,001 | | |
| | |
Page
|
| |||
CANNAHEALTH LTD. | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-16 | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | |
| | |
Note
|
| |
September 30, 2021
(Unaudited) |
| |
December 31, 2020
|
| |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
Current assets
|
| | | | | | | | | | — | | | | | | | | |
Cash, held in trust
|
| | | | | | | | | $ | 1,396 | | | | | | 1,477 | | |
Total Assets
|
| | | | | | | | | $ | 1,396 | | | | | | 1,477 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY | | | | | | | | | | | | | | | | | | | |
Shareholder’s Equity
|
| | | | | | | | | | — | | | | | | | | |
Share capital
|
| | | | 5 | | | | | $ | 1,477 | | | | | | 1,477 | | |
Accumulated deficit
|
| | | | | | | | | | — | | | | | | | | |
Accumulated comprehensive loss
|
| | | | | | | | | | (81) | | | | | | | | |
Total Shareholder’s Equity
|
| | | | | | | | | | 1,396 | | | | | | 1,477 | | |
Total Liabilities and Shareholder’s Equity
|
| | | | | | | | | $ | 1,396 | | | | | | 1,477 | | |
| | |
January 1, 2021 to
September 30, 2021 |
| |
July 1, 2020
(Inception) to September 30, 2020 |
| ||||||
Net sales
|
| | | $ | — | | | | | | — | | |
Other comprehensive income: | | | | | | | | | | | | | |
Foreign exchange loss
|
| | | | (81) | | | | | | — | | |
Net and comprehensive loss
|
| | | $ | (81) | | | | | | — | | |
| | |
Note
|
| |
Share
Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Comprehensive Loss |
| |
Total
Shareholder’s Equity |
| |||||||||||||||
Inception, July 1, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Share issuance at inception
|
| | | | 5 | | | | | $ | 1,477 | | | | | $ | — | | | | | $ | — | | | | | | 1,477 | | |
Balance, September 30 , 2020
|
| | | | | | | | | $ | 1,477 | | | | | $ | — | | | | | $ | — | | | | | | 1,477 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2021
|
| | | | | | | | | $ | 1,477 | | | | | $ | — | | | | | $ | — | | | | | | 1,477 | | |
Effect of foreign exchange translation
|
| | | | 5 | | | | | $ | — | | | | | | — | | | | | | (81) | | | | | | (81) | | |
Balance, September 30, 2021
|
| | | | | | | | | $ | 1,477 | | | | | $ | — | | | | | $ | (81) | | | | | | 1,396 | | |
| | |
January 1, 2021 to
September 30, 2021 |
| |
July 1, 2020
(Inception) to September 30, 2020 |
| ||||||
Cash Flows from Operating Activities
|
| | | $ | — | | | | | | — | | |
Cash Flows from Financing Activities
|
| | | $ | — | | | | | | — | | |
Proceeds from share issue
|
| | | $ | — | | | | | | 1,477 | | |
Cash flows provided by financing activities
|
| | | $ | — | | | | | | 1,477 | | |
Net change in cash
|
| | | $ | — | | | | | | — | | |
Cash at beginning of period
|
| | | $ | 1,477 | | | | | | — | | |
Foreign currency translation movement
|
| | | $ | (81) | | | | | | — | | |
Cash at end of period
|
| | | $ | 1,396 | | | | | | 1,477 | | |
| | |
Number of
ordinary shares |
| |
Share capital
2021 |
| ||||||
Inception at July 1, 2020 | | | | | | | | | | | | | |
Share issuance at inception
|
| | | | 1,200 | | | | | $ | 1,477 | | |
Issued and outstanding at September 30, 2020
|
| | | | | | | | | | 1,477 | | |
Issued and outstanding at January 1, 2021
|
| | | | | | | | | | 1,477 | | |
Issued and outstanding at September 30, 2021
|
| | | | | | | | | | 1,477 | | |
| | |
Page
|
| |||
BOPHELO HOLDINGS LTD | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | | |
| | | | F-30 | | |
| | |
Note
|
| |
September 30, 2021
(Unaudited) |
| |
August 31, 2021
|
| |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | $ | 135 | | | | | | 138 | | |
Total assets
|
| | | | | | | | | $ | 135 | | | | | | 138 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY | | | | | | | | | | | | | | | | | | | |
Shareholder’s Equity | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | 5 | | | | | $ | 138 | | | | | | 138 | | |
Accumulated other comprehensive loss
|
| | | | | | | | | | (3) | | | | | | — | | |
Total Shareholder’s Equity
|
| | | | | | | | | $ | 135 | | | | | | 138 | | |
Total Liabilities and Shareholder’s Equity
|
| | | | | | | | | $ | 135 | | | | | | 138 | | |
| | |
August 4, 2021
(Inception) to September 30, 2021 |
| |||
Net sales
|
| | | $ | — | | |
Foreign exchange translation through other comprehensive loss
|
| | | | (3) | | |
Net and Comprehensive loss
|
| | | $ | (3) | | |
| | |
Note
|
| |
Share
Capital |
| |
Accumulated
Deficit |
| |
Accumulated other
comprehensive loss |
| |
Total
Shareholder’s Equity |
| | | |||||||||||||||||||
Inception, August 4, 2021
|
| | | | | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | | — | | | | | ||||
Share issuance at inception
|
| | | | 5 | | | | | | 138 | | | | | | — | | | | | | — | | | | | | 138 | | | | | ||||
Balance, August 31, 2021
|
| | | | | | | | | $ | 138 | | | | | $ | — | | | | | $ | — | | | | | | 138 | | | | | ||||
Effect of foreign exchange
|
| | | | 5 | | | | | | | | | | | | — | | | | | | (3) | | | | | | — | | | | | | | | |
Balance, September 30, 2021
|
| | | | | | | | | $ | 138 | | | | | $ | — | | | | | $ | (3) | | | | | | 135 | | | | |
| | |
August 4, 2021
(Inception) to September 30, 2021 |
| |||
Cash Flows from Operating Activities
|
| | | $ | | | |
Cash flows from Financing Activities
|
| | | | — | | |
Proceeds from share issue
|
| | | | 138 | | |
Cash flows provided by financing activities
|
| | | | 138 | | |
Effect of foreign exchange
|
| | | | (3) | | |
Net change in cash
|
| | | | 135 | | |
Cash at beginning of period
|
| | | | — | | |
Cash at end of period
|
| | | $ | 135 | | |
| | |
Number of
ordinary shares |
| |
Share capital
2021 |
| ||||||
Inception at August 4, 2021 | | | | | | | | | | | | | |
Share issuance at inception
|
| | | | 100 | | | | | $ | 138 | | |
Issued and outstanding at August 31, 2021
|
| | | | 100 | | | | | $ | 138 | | |
Less: Effect of foreign exchange
|
| | | | | | | | | | (3) | | |
Issued and outstanding at September 30, 2021
|
| | | | 100 | | | | | $ | 135 | | |
| | |
Page
|
| |||
BOPHELO BIO SCIENCE AND WELLNESS (PTY) LTD | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-36 | | | |
| | | | F-37 | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | |
| | |
Note
|
| |
$
|
| |
September 30,
2021 (Unaudited) |
| |
December 31,
2020 |
| |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | | | | | 480,444 | | | | | | 10,120 | | |
Prepayments
|
| | | | 8 | | | | | | | | | 108,659 | | | | | | 113,485 | | |
Shareholders’ loan
|
| | | | | | | | | | | | | 6 | | | | | | 7 | | |
Total Current Assets
|
| | | | | | | | | | | | | 589,109 | | | | | | 123,612 | | |
Non-Current Assets | | | | | | | | | | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | 5 | | | | | | | | | 1,515,188 | | | | | | 742,887 | | |
Capital work in progress
|
| | | | 9 | | | | | | | | | 487,875 | | | | | | 883,145 | | |
Right-of-use asset
|
| | | | 7 | | | | | | | | | 2,035,074 | | | | | | 2,199,779 | | |
Intangible assets
|
| | | | 6 | | | | | | | | | 264,188 | | | | | | 304,260 | | |
Total Non-Current Assets
|
| | | | | | | | | | | | | 4,302,325 | | | | | | 4,130,071 | | |
Total Assets
|
| | | | | | | | | | | | | 4,891,434 | | | | | | 4,253,683 | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | 12 | | | | | | | | | 245,600 | | | | | | 182,878 | | |
Loans and borrowings
|
| | | | 10 | | | | | | | | | 10,603,444 | | | | | | 2,263,605 | | |
Lease liability
|
| | | | 11 | | | | | | | | | 45,662 | | | | | | 283,976 | | |
Total Current Liabilities
|
| | | | | | | | | | | | | 10,894,706 | | | | | | 2,730,459 | | |
Non-Current Liabilities | | | | | | | | | | | | | | | | | | | | | | |
Lease liability
|
| | | | 11 | | | | | | | | | 2,432,073 | | | | | | 2,598,176 | | |
Loans and borrowings
|
| | | | 10 | | | | | | | | | — | | | | | | 3,977,108 | | |
Total Non-Current Liabilities
|
| | | | | | | | | | | | | 2,432,073 | | | | | | 6,575,284 | | |
Total Liabilities
|
| | | | | | | | | | | | | 13,326,779 | | | | | | 9,305,743 | | |
Shareholders’ Deficit | | | | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | 13 | | | | | | | | | 156 | | | | | | 156 | | |
Reserves
|
| | | | 13 | | | | | | | | | 7 | | | | | | 7 | | |
Accumulated deficit
|
| | | | | | | | | | | | | (8,626,701) | | | | | | (5,160,401) | | |
Accumulated other comprehensive income
|
| | | | | | | | | | | | | 191,193 | | | | | | 108,177 | | |
Total Shareholders’ Deficit
|
| | | | | | | | | | | | | (8,435,345) | | | | | | (5,052,061) | | |
Total Liabilities and Shareholders’ Deficit
|
| | | | | | | | | | | | | 4,891,434 | | | | | | 4,253,683 | | |
| | |
$
|
| |
2021
(Unaudited) |
| |
2020
(Unaudited) |
| ||||||
Sales
|
| | | | | | | — | | | | | | — | | |
Cost of sales (excluding amortization and depreciation)
|
| | | | | | | — | | | | | | — | | |
| | | | | | | | — | | | | | | — | | |
Operating Expenses: | | | | | | | | | | | | | | | | |
Amortization and depreciation
|
| | | | | | | 231,427 | | | | | | 173,971 | | |
Consulting and professional fees
|
| | | | | | | 504,866 | | | | | | 454,721 | | |
General & Administration expenses
|
| | | | | | | 1,317,292 | | | | | | 163,654 | | |
Office expenses
|
| | | | | | | 33,216 | | | | | | 14,171 | | |
Personnel expenses
|
| | | | | | | 955,032 | | | | | | 223,345 | | |
Short term accommodation expense
|
| | | | | | | — | | | | | | 31,912 | | |
Travel expenses
|
| | | | | | | 57,063 | | | | | | 4,789 | | |
Total Operating expenses
|
| | | | | | | (3,098,896) | | | | | | (1,066,563) | | |
Loss from operations
|
| | | | | | | (3,098,896) | | | | | | (1,066,563) | | |
Other Income / (Expense): | | | | | | | | | | | | | | | | |
Interest income
|
| | | | | | | 25,782 | | | | | | 9,529 | | |
Interest expenses
|
| | | | | | | (393,186) | | | | | | (487,069) | | |
Total Other Income / Expense
|
| | | | | | | (367,404) | | | | | | (477,540) | | |
Loss before tax
|
| | | | | | | (3,466,300) | | | | | | (1,544,103) | | |
Income tax expense
|
| | | | | | | — | | | | | | — | | |
Net loss for the year
|
| | | | | | | (3,466,300) | | | | | | (1,544,103) | | |
Other comprehensive income: | | | | | | | | | | | | | | | | |
Foreign currency translation
|
| | | | | | | 83,016 | | | | | | 604,902 | | |
Total comprehensive loss for the year
|
| | | | | | | (3,383,284) | | | | | | (939,201) | | |
Basic and diluted loss per ordinary share
|
| | | | | | | (16) | | | | | | (6.95) | | |
Weighted average number of ordinary shares outstanding
|
| | | | | | | 222,212 | | | | | | 222,212 | | |
| | |
$
|
| |
Number of
Shares |
| |
Share
Capital |
| |
Reserves
|
| |
Accumulated
Deficit |
| |
Accumulated other
comprehensive income |
| |
Total
Shareholders’ Deficit |
| ||||||||||||||||||
Balance, January 1, 2020
|
| | | | | | | 222,212 | | | | | | 156 | | | | | | 7 | | | | | | (2,862,091) | | | | | | (42,565) | | | | | | (2,904,493) | | |
Effect of foreign exchange translation
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 604,902 | | | | | | 604,902 | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | (1,544,103) | | | | | | | | | | | | (1,544,103) | | |
Balance, September 30, 2020
|
| | | | | | | 222,212 | | | | | | 156 | | | | | | 7 | | | | | | (4,406,194) | | | | | | 562,337 | | | | | | (3,843,694) | | |
Balance, January 1, 2021
|
| | | | | | | 222,212 | | | | | | 156 | | | | | | 7 | | | | | | (5,160,401) | | | | | | 108,177 | | | | | | (5,052,061) | | |
Effect of foreign exchange translation
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 83,016 | | | | | | 83,016 | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | | | | (3,466,300) | | | | | | | | | | | | (3,466,300) | | |
Balance September 30, 2021
|
| | | | | | | 222,212 | | | | | | 156 | | | | | | 7 | | | | | | (8,626,701) | | | | | | 191,193 | | | | | | (8,435,345) | | |
| | |
$
|
| |
2021
(Unaudited) |
| |
2020
(Unaudited) |
| ||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | | | | |
Net loss
|
| | | | | | | (3,466,300) | | | | | | (1,544,103) | | |
Non-cash items included in net income: | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | | | | 231,427 | | | | | | 173,971 | | |
Interest expenses
|
| | | | | | | 393,186 | | | | | | 487,069 | | |
Write off of property, plant and equipment
|
| | | | | | | — | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | |
Prepayments
|
| | | | | | | 4,826 | | | | | | (98,457) | | |
Trade and other payables
|
| | | | | | | 62,723 | | | | | | 291,149 | | |
Net cash used in operating activities
|
| | | | | | | (2,774,139) | | | | | | (690,371) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | |
Additions to capital WIP
|
| | | | | | | — | | | | | | (146,866) | | |
Additions to property, plant and equipment
|
| | | | | | | (554,858) | | | | | | (241,208) | | |
Proceeds from advances received
|
| | | | | | | — | | | | | | 6,916 | | |
Net cash used in investing activities
|
| | | | | | | (554,858) | | | | | | (381,159) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | |
Repayment of lease liability
|
| | | | | | | (404,417) | | | | | | — | | |
Loans received
|
| | | | | | | 4,474,495 | | | | | | 239,864 | | |
Net cash provided by financing activities:
|
| | | | | | | 4,070,078 | | | | | | 239,864 | | |
Net change in cash
|
| | | | | | | 741,081 | | | | | | (831,665) | | |
Effects of currency translation on cash
|
| | | | | | | (270,758) | | | | | | 82,597 | | |
Cash at beginning of period
|
| | | | | | | 10,120 | | | | | | 818,447 | | |
Cash at end of period
|
| | | | | | | 480,443 | | | | | | 69,379 | | |
Supplemental cash flow disclosure
|
| | | | | | | | | | | | | | | |
Interest paid
|
| | | | | | $ | — | | | | | $ | — | | |
Tax paid
|
| | | | | | $ | — | | | | | $ | — | | |
| Plant and equipment | | | 10 years | |
| Leasehold improvements | | | 20 years | |
| Motor vehicles | | | 4 years | |
| Computers | | | 3 years | |
| Furniture and fixtures | | | 6 years | |
| | |
$
|
| |
Plant and
equipment |
| |
Leasehold
improvement |
| |
Motor
vehicles |
| |
Computers
|
| |
Furniture
and Fixtures |
| |
Total
|
| ||||||||||||||||||
Cost at January 1, 2020
|
| |
|
| | | | 449,044 | | | | | | 304,770 | | | | | | 38,427 | | | | | | — | | | | | | — | | | | | | 792,241 | | |
Additions
|
| | | | | | | 172,369 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 172,369 | | |
Write-offs
|
| | | | | | | (23,748) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (23,748) | | |
Foreign exchange movements
|
| | | | | | | (11,304) | | | | | | (11,333) | | | | | | (1,429) | | | | | | — | | | | | | — | | | | | | (24,066) | | |
Cost at December 31, 2020
|
| | | | | | | 586,361 | | | | | | 293,437 | | | | | | 36,998 | | | | | | — | | | | | | — | | | | | | 916,796 | | |
Additions
|
| | | | | | | 32,418 | | | | | | 822,928 | | | | | | 87,044 | | | | | | 4,213 | | | | | | 4,437 | | | | | | 879,954 | | |
Cost at September 30, 2021
|
| | | | | | | 618,779 | | | | | | 1,116,365 | | | | | | 50,046 | | | | | | 4,213 | | | | | | 4,437 | | | | | | 1,793,750 | | |
Accumulated Depreciation at January 1, 2020
|
| | | | | | | (67,113) | | | | | | (22,489) | | | | | | (4,803) | | | | | | — | | | | | | — | | | | | | (94,405) | | |
| | |
$
|
| |
Plant and
equipment |
| |
Leasehold
improvement |
| |
Motor
vehicles |
| |
Computers
|
| |
Furniture
and Fixtures |
| |
Total
|
| ||||||||||||||||||
Depreciation
|
| | | | | | | (60,212) | | | | | | (14,950) | | | | | | (9,425) | | | | | | — | | | | | | — | | | | | | (84,587) | | |
Foreign exchange movements
|
| | | | | | | 3,615 | | | | | | 1,114 | | | | | | 354 | | | | | | — | | | | | | — | | | | | | 5,083 | | |
Accumulated Depreciation at December 31, 2020
|
| | | | | | | (123,710) | | | | | | (36,325) | | | | | | (13,874) | | | | | | — | | | | | | — | | | | | | (173,909) | | |
Depreciation
|
| | | | | | | (48,297) | | | | | | (55,434) | | | | | | (8,335) | | | | | | (412) | | | | | | (287) | | | | | | (112,765) | | |
Foreign exchange movements
|
| | | | | | | 5,208 | | | | | | 9,257 | | | | | | 636 | | | | | | 7 | | | | | | 5 | | | | | | 15,113 | | |
Accumulated Depreciation at September 30, 2021
|
| | | | | | | (166,799) | | | | | | (82,502) | | | | | | (21,573) | | | | | | (405) | | | | | | (282) | | | | | | (278,562) | | |
Carrying value at January 1, 2020
|
| | | | | | | 381,931 | | | | | | 282,281 | | | | | | 33,624 | | | | | | — | | | | | | — | | | | | | 697,836 | | |
Additions
|
| | | | | | | 172,369 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 172,369 | | |
Disposals
|
| | | | | | | (23,748) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (23,748) | | |
Depreciation
|
| | | | | | | (60,212) | | | | | | (14,950) | | | | | | (9,425) | | | | | | — | | | | | | — | | | | | | (84,587) | | |
Foreign exchange movements
|
| | | | | | | (7,689) | | | | | | (10,219) | | | | | | (1,075) | | | | | | — | | | | | | — | | | | | | (18,983) | | |
Carrying value at December 31, 2020
|
| | | | | | | 462,651 | | | | | | 257,112 | | | | | | 23,124 | | | | | | — | | | | | | — | | | | | | 742,887 | | |
Additions
|
| | | | | | | 32,418 | | | | | | 822,928 | | | | | | 87,044 | | | | | | 4,213 | | | | | | 4,437 | | | | | | 879,954 | | |
Disposals | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation
|
| | | | | | | (48,297) | | | | | | (55,434) | | | | | | (8,335) | | | | | | (412) | | | | | | (287) | | | | | | (112,765) | | |
Foreign exchange movements
|
| | | | | | | 5,208 | | | | | | 9,257 | | | | | | 636 | | | | | | 7 | | | | | | 5 | | | | | | 15,113 | | |
Carrying value at September 30, 2021
|
| | | | | | | 451,981 | | | | | | 1,026,862 | | | | | | 28,473 | | | | | | 3,808 | | | | | | 4,064 | | | | | | 1,515,188 | | |
|
| | |
$
|
| |
Licenses
|
| |
Total
|
| ||||||
Cost at January 1, 2020
|
| | | | | | | 421,348 | | | | | | 421,348 | | |
Foreign exchange movements
|
| | | | | | | (15,668) | | | | | | (15,668) | | |
Cost at December 31, 2020
|
| | | | | | | 405,680 | | | | | | 405,680 | | |
Foreign exchange movements
|
| | | | | | | (14,291) | | | | | | (14,291) | | |
Cost at September 30, 2021
|
| | | | | | | 391,389 | | | | | | 391,389 | | |
Accumulated amortization at January 1, 2020
|
| | | | | | | (63,202) | | | | | | (63,202) | | |
Amortization
|
| | | | | | | (41,337) | | | | | | (41,337) | | |
Foreign exchange translation
|
| | | | | | | 3,119 | | | | | | 3,119 | | |
Accumulated amortization at December 31, 2020
|
| | | | | | | (101,420) | | | | | | (101,420) | | |
Accumulated amortization at December 31, 2020
|
| | | | | | | (101,420) | | | | | | (101,420) | | |
Amortization
|
| | | | | | | (29,880) | | | | | | (29,880) | | |
Foreign exchange translation
|
| | | | | | | 4,908 | | | | | | 4,908 | | |
Accumulated amortization at December 31, 2020
|
| | | | | | | (127,202) | | | | | | (127,202) | | |
Carrying value at January 1, 2020
|
| | | | | | | 358,146 | | | | | | 358,146 | | |
Amortization
|
| | | | | | | (41,337) | | | | | | (41,337) | | |
| | |
$
|
| |
Licenses
|
| |
Total
|
| ||||||
Foreign exchange translation
|
| | | | | | | (12,549) | | | | | | (12,549) | | |
Carrying value at December 31, 2020
|
| | | | | | | 304,260 | | | | | | 304,260 | | |
Amortization
|
| | | | | | | (29,880) | | | | | | (29,880) | | |
Foreign exchange translation
|
| | | | | | | (9,383) | | | | | | (9,383) | | |
Carrying value at September 30, 2021
|
| | | | | | | 264,188 | | | | | | 264,188 | | |
|
| | |
$
|
| |
Land Lease
|
| |
Total
|
| |||||||||
Cost: | | | | | | | | | | | | | | | | | | | |
Balance as at January 1, 2020
|
| | | | | | | | | | 2,503,827 | | | | | | 2,503,827 | | |
Additions during the year
|
| | | | | | | | | | — | | | | | | — | | |
Balance as at December 31, 2020
|
| | | | | | | | | | 2,503,827 | | | | | | 2,503,827 | | |
Additions during the year
|
| | | | | | | | | | — | | | | | | — | | |
foreign exchange movement
|
| | | | (178,028) | | | | | | (178,028) | | | | |||||
Balance as at September 30, 2021
|
| | | | | | | | | | 2,325,799 | | | | | | 2,503,827 | | |
Accumulated Depreciation: | | | | | | | | | | | | | | | | | | | |
Balance as at January 1, 2020
|
| | | | | | | | | | 93,893 | | | | | | 93,893 | | |
Charge for the year
|
| | | | | | | | | | 122,820 | | | | | | 122,820 | | |
Effects of Currency Translation
|
| | | | | | | | | | 87,335 | | | | | | 87,335 | | |
Balance as at December 31, 2020
|
| | | | | | | | | | 304,048 | | | | | | 304,048 | | |
Charge for the year
|
| | | | | | | | | | 88,781 | | | | | | 88,781 | | |
Effects of Currency Translation
|
| | | | | | | | | | (102,044) | | | | | | (102,044) | | |
Balance as at September 30, 2021
|
| | | | | | | | | | (290,725) | | | | | | (290,725) | | |
Net Book Value: | | | | | | | | | | | | | | | | | | | |
At December 31, 2020
|
| | | | | | | | | | 2,199,779 | | | | | | 2,199,779 | | |
At September 31, 2021
|
| | | | | | | | | | 2,035,074 | | | | | | 2,035,074 | | |
| | |
$
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Prepaid expenses
|
| | | | | | | 108,659 | | | | | | 113,485 | | |
| | | | | | | | 108,659 | | | | | | 113,485 | | |
| | |
$
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Capital work in progress
|
| | | | | | | 487,875 | | | | | | 883,145 | | |
| | | | | | | | 487,875 | | | | | | 883,145 | | |
| | |
$
|
| |
Louisa
Mojela |
| |
Granny
Seape |
| |
1942
Capital |
| |
Seedy
Lette |
| |
GMG/
Middleton |
| |
Halo
Collective Inc. |
| |
Total
|
| |||||||||||||||||||||
Value at January 1, 2020
|
| | | | | | | 2,191,396 | | | | | | 300,477 | | | | | | 1,285,146 | | | | | | 240,251 | | | | | | 1,049,322 | | | | | | (6,916) | | | | | | 5,059,674 | | |
Loans issued
|
| | | | | | | 438,420 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 731,375 | | | | | | 1,169,796 | | |
Loans carried off
|
| | | | | | | (1,147,260) | | | | | | (307,337) | | | | | | (1,314,361) | | | | | | (245,712) | | | | | | (1,030,158) | | | | | | 4,044,828 | | | | | | — | | |
Loans repaid
|
| | | | | | | (137,788) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (137,788) | | |
Interest on loans
|
| | | | | | | 278,901 | | | | | | 12,656 | | | | | | 54,190 | | | | | | 10,130 | | | | | | 753 | | | | | | — | | | | | | 356,631 | | |
Foreign exchange movements
|
| | | | | | | (71,182) | | | | | | (5,796) | | | | | | (24,974) | | | | | | (4,669) | | | | | | (19,917) | | | | | | (81,061) | | | | | | (207,598) | | |
Value at December 31, 2020
|
| | | | | | | 1,552,487 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,688,226 | | | | | | 6,240,714 | | |
Current portion
|
| | | | | | | 1,552,487 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 711,118 | | | | | | 2,263,605 | | |
Non-current portion
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,977,108 | | | | | | 3,977,108 | | |
Value at December 31,
2020 |
| | | | | | | 1,552,487 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,688,226 | | | | | | 6,240,714 | | |
Loans issued
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,474,495 | | | | | | 4,474,495 | | |
Loans carried off
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loans repaid
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Interest on loans
|
| | | | | | | 190,220 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 190,221 | | |
Foreign exchange movements
|
| | | | | | | (1,690) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (300,296) | | | | | | (301,986) | | |
Value at September 30, 2021
|
| | | | | | | 1,741,017 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,862,425 | | | | | | 10,603,444 | | |
Current portion
|
| | | | | | | 1,741,017 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,862,425 | | | | | | 10,603,444 | | |
Non-current portion
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Value at September 30, 2021
|
| | | | | | | 1,741,017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 8,862,425 | | | | | | 10,603,444 | | |
| | |
$
|
| |
Land
Lease |
| |
Total
|
| ||||||
Balance as at January 1, 2020
|
| | | | | | | 2,408,074 | | | | | | 2,408,074 | | |
Interest Expense
|
| | | | | | | 284,950 | | | | | | 284,950 | | |
Lease payments during the year
|
| | | | | | | — | | | | | | — | | |
| | |
$
|
| |
Land
Lease |
| |
Total
|
| ||||||
Effects of Currency Translation
|
| | | | | | | (105,816) | | | | | | (105,816) | | |
| | | | | | | | 2,882,152 | | | | | | 2,882,152 | | |
Less: current portion
|
| | | | | | | (283,976) | | | | | | (283,976) | | |
As at December 31, 2020
|
| | | | | | | 2,598,176 | | | | | | 2,598,176 | | |
Interest Expense
|
| | | | | | | 202,965 | | | | | | 202,965 | | |
Lease payments during the year
|
| | | | | | | (511,686) | | | | | | (511,686) | | |
Effects of Currency Translation
|
| | | | | | | (95,426) | | | | | | (95,426) | | |
| | | | | | | | 2,477,735 | | | | | | 2,477,735 | | |
Less: current portion
|
| | | | | | | (45,662) | | | | | | (46,517) | | |
As at September 30, 2021
|
| | | | | | | 2,432,073 | | | | | | 2,432,073 | | |
|
| | |
$
|
| |
September 31,
2021 |
| |||
Amounts payable within 1 year
|
| | | | | | | 45,662 | | |
Amounts payable between 1 and 5 years
|
| | | | | | | 1,369,863 | | |
Amounts payable after 5 years
|
| | | | | | | 3,150,685 | | |
Total payments
|
| | | | | | | 4,566,210 | | |
Interest on lease agreement
|
| | | | | | | 2,088,475 | | |
| | | | | | | | 2,432,073 | | |
| | |
$
|
| |
September 31,
2021 |
| |
December 31,
2020 |
| ||||||
Trade payables
|
| | | | | | | 99,158 | | | | | | 107,839 | | |
Directors’ remuneration payable
|
| | | | | | | 75,693 | | | | | | 48,584 | | |
Consulting fees payable
|
| | | | | | | 61,561 | | | | | | — | | |
LRA Duties
|
| | | | | | | 13 | | | | | | — | | |
Accrued payroll taxes
|
| | | | | | | 9,175 | | | | | | 26,455 | | |
| | | | | | | | 245,600 | | | | | | 182,878 | | |
| | |
$
|
| |
Number of
shares |
| |
Par value
|
| |
Share
capital |
| |
Reserves
|
| |
Total
|
| |||||||||||||||
Balance at December 31, 2020
|
| | | | | | | 222,212 | | | | | | 0.0007 | | | | | | 156 | | | | | | 7 | | | | | | 163 | | |
Issued and outstanding as at September 30 2021
|
| | | | | | | 222,212 | | | | | | 0.0007 | | | | | | 156 | | | | | | 7 | | | | | | 163 | | |
| | |
$
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Net loss for the year
|
| | | | | | | (3,466,300) | | | | | | (2,298,310) | | |
Statutory income tax rate
|
| | | | | | | 25% | | | | | | 25% | | |
Expected tax recovery at statutory income tax rates
|
| | | | | | | (866,575) | | | | | | (574,578) | | |
Change in deferred tax assets not recognized
|
| | | | | | | 866,575 | | | | | | 574,578) | | |
| | | | | | | | — | | | | | | —) | | |
| | |
$
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Deferred tax assets | | | | | | | | | | | | | | | | |
Net operating loss carried forward
|
| | | | | | | 8,626,701 | | | | | | 5,160,401) | | |
Deferred tax assets not recognized
|
| | | | | | | (8,626,701) | | | | | | (5,160,401) | | |
Net deferred tax assets
|
| | | | | | | — | | | | | | —) | | |
| | |
Page
|
| |||
CANMART LTD | | | | | | | |
Unaudited Condensed Financial Statements: | | | | | | | |
| | | | F-56 | | | |
| | | | F-57 | | | |
| | | | F-58 | | | |
| | | | F-59 | | | |
| | | | F-60 | | |
Presented in US Dollars
|
| |
Note
|
| |
$
|
| |
September 30,
2021 (Unaudited) |
| |
December 31,
2020 |
| |||||||||
ASSETS
|
| | | | | | | |
|
| | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | | | | | 227,856 | | | | | | 1,907 | | |
Inventory
|
| | | | | | | | | | | | | 12,597 | | | | | | 611 | | |
Trade and other receivables
|
| | | | | | | | | | | | | 105,142 | | | | | | — | | |
Total Current Assets
|
| | | | | | | | | | | | | 345,595 | | | | | | 2,518 | | |
Non-Current Assets | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets
|
| | | | 5 | | | | | | | | | 17,022 | | | | | | 17,146 | | |
Total Non-Current Assets
|
| | | | | | | | | | | | | 17,022 | | | | | | 17,146 | | |
Total Assets
|
| | | | | | | | | | | | | 362,617 | | | | | | 19,664 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY (DEFICIT) | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | 7 | | | | | | | | | 327,198 | | | | | | 1,024 | | |
| | | | | | | | | | | | | | 327,198 | | | | | | 1,024 | | |
Non-Current Liabilities | | | | | | | | | | | | | | | | | | | | | | |
Shareholder loan
|
| | | | | | | | | | | | | 969,282 | | | | | | — | | |
| | | | | | | | | | | | | | 969,282 | | | | | | — | | |
Total Liabilities
|
| | | | | | | | | | | | | 1,296,480 | | | | | | 1,024 | | |
Shareholder’s Equity (Deficit) | | | | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | 8 | | | | | | | | | 3 | | | | | | 3 | | |
Accumulated deficit
|
| | | | | | | | | | | | | (960,473) | | | | | | (2,291) | | |
Other reserves
|
| | | | | | | | | | | | | 21,046 | | | | | | 21,046 | | |
Accumulated other comprehensive income/ (loss)
|
| | | | | | | | | | | | | 5,561 | | | | | | (117) | | |
| | | | | | | | | | | | | | (933,863) | | | | | | 18,640 | | |
Total Liabilities and Shareholder’s Equity (Deficit)
|
| | | | | | | | | | | | | 362,617 | | | | | | 19,664 | | |
Presented in US Dollars
|
| |
Note
|
| |
2021
|
| |
2020
|
| ||||||
Sales
|
| | | | | | | 17,359 | | | | | | 1,788 | | |
Cost of sales
|
| | | | | | | (11,469) | | | | | | (1,531) | | |
| | | | | | | | 5,890 | | | | | | 257 | | |
Consulting and professional fees
|
| | | | | | | 565,614 | | | | | | — | | |
License costs
|
| | | | | | | 1,267 | | | | | | 894 | | |
Salaries and wages
|
| | | | | | | 339,556 | | | | | | — | | |
General & administrative expenses
|
| | | | | | | 93,650 | | | | | | 514 | | |
Total operating expenses
|
| | | | | | | 1,000,087 | | | | | | 1,408 | | |
Loss from Operations
|
| | | | | | | (994,197) | | | | | | (1,151) | | |
Other Income (Expense) | | | | | | | | | | | | | | | | |
Interest income
|
| | | | | | | 50 | | | | | | 1 | | |
Foreign exchange through profit and loss
|
| | | | | | | 35,911 | | | | | | — | | |
Other income
|
| | | | | | | 54 | | | | | | 136 | | |
Total Other Income (Expense)
|
| | | | | | | 36,015 | | | | | | 137 | | |
Net loss before income tax
|
| | | | | | | (958,182) | | | | | | (1,014) | | |
Income tax expense
|
| | | | | | | — | | | | | | — | | |
Net Loss for the Year
|
| | | | | | | (958,182) | | | | | | (1,014) | | |
Other Comprehensive Loss: | | | | | | | | | | | | | | | | |
Exchange differences on foreign currency translation
|
| | | | | | | 5,678 | | | | | | (22) | | |
Net and Comprehensive Loss
|
| | | | | | | (952,504) | | | | | | (1,036) | | |
Basic and dilutive loss per ordinary share
|
| | | | | | | (476,252) | | | | | | (518.20) | | |
Weighted average number of ordinary shares outstanding
|
| | | | | | | 2 | | | | | | 2 | | |
Presented in US Dollars
|
| |
$
|
| |
Number
of Shares |
| |
Share
Capital |
| |
Accumulated
other comprehensive income/(loss) |
| |
Accumulated
Deficit |
| |
Other
Reserves |
| |
Total
Equity (Deficit) |
| ||||||||||||||||||
Balance, January 1, 2020
|
| |
|
| | | | 2 | | | | | | 3 | | | | | | (1) | | | | | | (30) | | | | | | — | | | | | | (28) | | |
Issue of shares
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Currency translation
|
| | | | | | | — | | | | | | — | | | | | | (21) | | | | | | — | | | | | | | | | | | | (21) | | |
Contribution to reserves by owners
of the Company |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18,140 | | | | | | 18,140 | | |
Net loss
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,014) | | | | | | — | | | | | | (1,014) | | |
Balance, September 30, 2020
|
| | | | | | | 2 | | | | | | 3 | | | | | | (22) | | | | | | (1,044) | | | | | | 18,140 | | | | | | 17,077 | | |
Balance, January 1, 2021
|
| | | | | | | 2 | | | | | | 3 | | | | | | (117) | | | | | | (2,291) | | | | | | 21,046 | | | | | | 18,641 | | |
Effect of foreign currency translation
|
| | | | | | | — | | | | | | — | | | | | | 5,678 | | | | | | — | | | | | | — | | | | | | 5,678 | | |
Net loss
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (958,182) | | | | | | | | | | | | (958,182) | | |
Balance, September 30, 2021
|
| | | | | | | 2 | | | | | | 3 | | | | | | 5,561 | | | | | | (960,473) | | | | | | 21,046 | | | | | | (933,863) | | |
Presented in US Dollars
|
| |
Note
|
| |
$
|
| |
January 1, 2020 to
September 30, 2021 |
| |
January 1, 2020 to
September 30, 2020 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | | | | | | | (958,182) | | | | | | (1,014) | | |
Adjustments to reconcile net income to net cash provided by
(used in) operating activities: |
| | | | | | | | | | — | | | | | | — | | |
Foreign exchange through profit and loss
|
| | | | | | | | | | (35,911) | | | | | | | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | |
Increase in inventory
|
| | | | | | | | | | (11,986) | | | | | | — | | |
Increase in trade and other payables
|
| | | | | | | | | | 326,173 | | | | | | 303 | | |
Increase in trade and other receivables
|
| | | | | | | | | | (105,142) | | | | | | (2,151) | | |
Net cash provided by operating activities
|
| | | | | | | | | | (785,048) | | | | | | (2,862) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | |
Payments for acquisition of cannabis licenses
|
| | | | | | | | | | — | | | | | | (14,779) | | |
Net cash used in investing activities
|
| | | | | | | | | | — | | | | | | (14,779) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Additional contributions to owners’ capital
|
| | | | | | | | | | — | | | | | | 18,140 | | |
Proceeds from shareholder’s loan
|
| | | | | | | | | | 969,282 | | | | | | — | | |
Net cash provided by financing activities:
|
| | | | | | | | | | 969,282 | | | | | | 18,140 | | |
Effects of foreign exchange translation on cash
|
| | | | | | | | | | 41,715 | | | | | | (1,163) | | |
Net change in cash
|
| | | | | | | | | | 225,949 | | | | | | (664) | | |
Cash at beginning of year
|
| | | | | | | | | | 1,907 | | | | | | 1,116 | | |
Cash at end of year
|
| | | | | | | | | | 227,856 | | | | | | 452 | | |
Supplemental cash flow information: | | | | | | | | | | | | | | | | | | | |
Interest paid
|
| | | | | | | | | | — | | | | | | — | | |
Taxes paid
|
| | | | | | | | | | — | | | | | | — | | |
Non-cash Investing and Financing Activities: | | | | | | | | | | | | | | | | | | | |
Contributions to reserves by shareholders due to waiver of balance due to related party
|
| | | | | | | | | | — | | | | | | — | | |
| | |
$
|
| |
Licences
|
| |
Total
|
| ||||||
Cost at January 1, 2020
|
| |
|
| | | | 16,563 | | | | | | 16,563 | | |
Amortisation
|
| | | | | | | — | | | | | | — | | |
Foreign exchange translation
|
| | | | | | | 583 | | | | | | 583 | | |
Cost at December 31, 2020
|
| | | | | | | 17,146 | | | | | | 17,146 | | |
Accumulated amortisation at December 31, 2020
|
| | | | | | | — | | | | | | — | | |
Carrying value at December 31, 2020
|
| | | | | | | 17,146 | | | | | | 17,146 | | |
Foreign exchange translation
|
| | | | | | | (124) | | | | | | (124) | | |
Amortisation
|
| | | | | | | — | | | | | | — | | |
Cost at September 30, 2021
|
| | | | | | | 17,022 | | | | | | 17,022 | | |
Accumulated amortisation at December 31,2020
|
| | | | | | | — | | | | | | — | | |
Carrying value at September 30,2021
|
| | | | | | | 17,022 | | | | | | 17,022 | | |
| | |
$
|
| |
September, 30 2021
|
| |
December, 31 2020
|
| ||||||
Trade receivables
|
| |
|
| | | | 12,366 | | | | | | 523 | | |
Allowance for bad debts
|
| | | | | | | — | | | | | | (523) | | |
VAT receivable
|
| | | | | | | 11,531 | | | | | | — | | |
PAYE receivables
|
| | | | | | | 81,245 | | | | | | — | | |
| | | | | | | | 105,142 | | | | | | — | | |
| | |
$
|
| |
September 30, 2021
|
| |
December 31, 2020
|
| ||||||
Net loss for the period
|
| |
|
| | | | (958,182) | | | | | | (2,261) | | |
Statutory income tax rate
|
| | | | | | | 18% | | | | | | 18% | | |
Expected tax recovery at statutory income tax rates
|
| | | | | | | (172,472) | | | | | | (407) | | |
Change in deferred tax assets not recognized
|
| | | | | | | 172,472 | | | | | | 407 | | |
| | | | | | | | —) | | | | | | —) | | |
| | |
$
|
| |
September 30, 2021
|
| |
December 31, 2020
|
| ||||||
Deferred tax assets | | | | | | | | | | | | | | | | |
Net operating loss carried forward
|
| |
|
| | | | 960,473) | | | | | | 2,291) | | |
Deferred tax assets not recognized
|
| | | | | | | (960,473) | | | | | | (2,291) | | |
Net deferred tax assets
|
| | | | | | | —) | | | | | | —) | | |
| | | | | |
Akanda
Corp. |
| |
Cannahealth
|
| |
Bophelo
Holdings |
| |
Canmart
|
| |
Bophelo
Bio Science |
| |
Total
|
| |
Proforma
Adjustments |
| |
Notes
|
| |
Proforma
As Adjusted |
| ||||||||||||||||||||||||
| | |
$
|
| |
30 September
2021 |
| |
30 September
2021 |
| |
30 September
2021 |
| |
30 September
2021 |
| |
30 September
2021 |
| |
30 September
2021 |
| | | | | | | | | | | | | | | | ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| |
|
| | | | 250,001 | | | | | | 1,396 | | | | | | 135 | | | | | | 227,856 | | | | | | 480,444 | | | | | | 959,832 | | | | | | 19,983,320 | | | |
4(a,c&d)
|
| | | | 20,943,152 | | |
Trade and other
receivables |
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 105,142 | | | | | | — | | | | | | 105,142 | | | | | | — | | | | | | | | | 105,142 | | |
Prepayments
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 108,659 | | | | | | 108,659 | | | | | | — | | | | | | | | | 108,659 | | |
Inventory
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,597 | | | | | | — | | | | | | 12,597 | | | | | | — | | | | | | | | | 12,597 | | |
Loan to shareholder
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6 | | | | | | 6 | | | | | | — | | | | | | | | | 6 | | |
Total Current Assets
|
| | | | | | | 250,001 | | | | | | 1,396 | | | | | | 135 | | | | | | 345,595 | | | | | | 589,109 | | | | | | 1,186,236 | | | | | | 19,983,320 | | | | | | | | | 21,169,556 | | |
Non-Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,515,188 | | | | | | 1,515,188 | | | | | | — | | | | | | | | | 1,515,188 | | |
Capital work in progress
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 487,875 | | | | | | 487,875 | | | | | | — | | | | | | | | | 487,875 | | |
Right-of-use asset
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,035,074 | | | | | | 2,035,074 | | | | | | — | | | | | | | | | 2,035,074 | | |
Intangible assets
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,022 | | | | | | 264,188 | | | | | | 281,210 | | | | | | — | | | | | | | | | 281,210 | | |
Total Non-Current Assets
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,022 | | | | | | 4,302,325 | | | | | | 4,319,347 | | | | | | — | | | | | | | | | 4,319,347 | | |
Total Assets
|
| | | | | | | 250,001 | | | | | | 1,396 | | | | | | 135 | | | | | | 362,617 | | | | | | 4,891,434 | | | | | | 5,505,583 | | | | | | 19,983,320 | | | | | | | | | 25,488,903 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | | | | 92,055 | | | | | | — | | | | | | — | | | | | | 327,198 | | | | | | 245,600 | | | | | | 664,853 | | | | | | — | | | | | | | | | 664,853 | | |
Loans and borrowings
|
| | | | | | | 4,226 | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,603,444 | | | | | | 10,603,444 | | | | | | (8,009,785) | | | |
4(b&e)
|
| | | | 2,593,659 | | |
Lease liability
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45,662 | | | | | | 45,662 | | | | | | — | | | | | | | | | 45,662 | | |
Total Current Liabilities
|
| | | | | | | 96,281 | | | | | | — | | | | | | — | | | | | | 327,198 | | | | | | 10,894,706 | | | | | | 11,313,959 | | | | | | (8,009,785)- | | | | | | | | | 3,304,174 | | |
Non-Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Lease liability
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,432,073 | | | | | | 2,432,073 | | | | | | — | | | | | | | | | 2,432,073 | | |
Loans and borrowings
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 969,282 | | | | | | — | | | | | | 973,508 | | | | | | — | | | | | | | | | 973,508 | | |
Total Non-Current
Liabilities |
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 969,282 | | | | | | 2,432,073 | | | | | | 3,405,581 | | | | | | — | | | | | | | | | 3,405,581 | | |
Total Liabilities
|
| | | | | | | 96,281 | | | | | | — | | | | | | — | | | | | | 1,296,480 | | | | | | 13,326,779 | | | | | | 14,719,540 | | | | | | (8,009,785) | | | | | | | | | 6,709,755 | | |
Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital
|
| | | | | | | 250,001 | | | | | | 1,477 | | | | | | 138 | | | | | | 3 | | | | | | 156 | | | | | | 251,775 | | | | | | 41,870,012 | | | |
4(a,bc,d&e)
|
| | | | 42,121,787 | | |
Reserves
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 21,046 | | | | | | 7 | | | | | | 21,053 | | | | | | — | | | |
—
|
| | | | 21,053 | | |
Accumulated deficit
|
| | | | | | | (96,179) | | | | | | — | | | | | | — | | | | | | (960,473) | | | | | | (8,626,701) | | | | | | (9,683,353) | | | | | | (749,469) | | | | | | | | | (10,432,822) | | |
Other comprehensive
income |
| | | | | | | (102) | | | | | | (81) | | | | | | (3) | | | | | | 5,561 | | | | | | 191,193 | | | | | | 196,568 | | | | | | (13,127,438) | | | |
4(a)
|
| | | | (12,930,870)) | | |
Total Shareholders’ equity
|
| | | | | | | 153,720 | | | | | | 1,396 | | | | | | 135 | | | | | | (933,863) | | | | | | (8,435,345) | | | | | | (9,213,957) | | | | | | 27,993,105 | | | | | | | | | 18,779,148 | | |
Total Liabilities and Shareholders’ Equity
|
| | | | | | | 250,001 | | | | | | 1,396 | | | | | | 135 | | | | | | 362,617 | | | | | | 4,891,434 | | | | | | 5,505,583 | | | | | | 19,983,320 | | | | | | | | | 25,488,903 | | |
| | | | | |
Akanda
Corp. |
| |
Cannahealth
|
| |
Bophelo
Holdings |
| |
Canmart
|
| |
Bophelo
Bio Science |
| |
Total
|
| |
Proforma
Adjustments |
| |
Notes
|
| |
Proforma
As Adjusted |
| ||||||||||||||||||||||||
| | |
$
|
| |
30 September
2021 |
| |
30 September
2021 |
| |
30 September
2021 |
| |
30 September
2021 |
| |
30 September
2021 |
| | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Sales
|
| |
|
| | | | — | | | | | | — | | | | | | — | | | | | | 17,359 | | | | | | — | | | | | | 17,359 | | | | | | — | | | | | | | | | 17,359 | | |
Cost of sales
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (11,469) | | | | | | — | | | | | | (11,469) | | | | | | — | | | | | | | | | (11,469) | | |
Gross Profit
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,890 | | | | | | — | | | | | | 5,890 | | | | | | — | | | | | | | | | 5,890 | | |
Accounting & Audit
|
| | | | | | | 16,822 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 16,822 | | | | | | — | | | | | | | | | 16,822 | | |
Amortisation and
depreciation |
| | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 231,427 | | | | | | 231,427 | | | | | | — | | | | | | | | | 231,427 | | |
Consulting and professional
fees |
| | | | | | | 32,904 | | | | | | — | | | | | | — | | | | | | 565,614 | | | | | | 504,866 | | | | | | 1,103,384 | | | | | | — | | | | | | | | | 1,103,384 | | |
General & administrative
expenses |
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 93,650 | | | | | | 1,317,292 | | | | | | 1,410,942 | | | | | | — | | | | | | | | | 1,410,942 | | |
Legal fees
|
| | | | | | | 39,474 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 39,474 | | | | | | — | | | | | | | | | 39,474 | | |
License costs
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,267 | | | | | | — | | | | | | 1,267 | | | | | | | | | | | | | | | 1,267 | | |
Office expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 33,216 | | | | | | 33,216 | | | | | | — | | | | | | | | | 33,216 | | |
Personnel expenses
|
| | | | | | | 12,275 | | | | | | — | | | | | | — | | | | | | 339,556 | | | | | | 955,032 | | | | | | 1,306,863 | | | | | | — | | | | | | | | | 1,306,863 | | |
Travel expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 57,063 | | | | | | 57,063 | | | | | | — | | | | | | | | | 57,063 | | |
Loss from Operations
|
| | | | | | | (101,475) | | | | | | — | | | | | | — | | | | | | (994,917) | | | | | | (3,098,896) | | | | | | (4,194,568) | | | | | | — | | | | | | | | | (4,194,568) | | |
Interest income
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 50 | | | | | | 25,782 | | | | | | 25,832 | | | | | | — | | | | | | | | | 25,832 | | |
Interest expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (393,186) | | | | | | (393,186) | | | | | | (749,469) | | | |
4(b)
|
| | | | (1,142,655) | | |
Foreign exchange gain
|
| | | | | | | 5,296 | | | | | | — | | | | | | — | | | | | | 35,911 | | | | | | — | | | | | | 41,207 | | | | | | | | | | | | | | | 41,207 | | |
Other income
|
| | | | | | | | | | | | | | | | | | | | | | | | | 54 | | | | | | — | | | | | | 54 | | | | | | | | | | | | | | | 54 | | |
Net loss from operations
|
| | | | | | | (96,179) | | | | | | — | | | | | | — | | | | | | (958,182) | | | | | | (3,466,300) | | | | | | (4,520,661) | | | | | | (749,469) | | | | | | | | | (5,270,130) | | |
Foreign exchange translation
|
| | | | | | | (102) | | | | | | (81) | | | | | | (3) | | | | | | 5,678 | | | | | | 83,016 | | | | | | 88,508 | | | | | | — | | | | | | | | | 88,508 | | |
Net and comprehensive loss
|
| | | | | | | (96,281) | | | | | | (81) | | | | | | (3) | | | | | | (952,504) | | | | | | (3,383,284) | | | | | | (4,432,153) | | | | | | (749,469) | | | | | | | | | (5,181,622) | | |
Basic and dilutive loss per ordinary
share |
| | | | | | | (0.02) | | | | | | — | | | | | | — | | | | | | (476,252) | | | | | | (15.23) | | | | | | | | | | | | | | | | | | | | | (0.18) | | |
Weighted average number of ordinary shares outstanding
|
| | | | | | | 6,095,706 | | | | | | 1,200 | | | | | | 100 | | | | | | 2 | | | | | | 222,212 | | | | | | | | | | | | 21,993,912 | | | |
4(a,b,c,d&e)
|
| | | | 28,313,132 | | |
| | | | | |
Akanda
Corp. |
| |
Cannahealth
|
| |
Bophelo
Holdings |
| |
Canmart
|
| |
Bophelo Bio
Science |
| |
Total
|
| |
Proforma
Adjustments |
| |
Notes
|
| |
Proforma
As Adjusted |
| ||||||||||||||||||
| | |
$
|
| |
N/A
|
| |
30 September
2020 |
| |
N/A
|
| |
30 September
2020 |
| |
30 September
2020 |
| | | | | | | | | | | | | | | | | | | | | | |||||||||
Sales
|
| | | | | | | | | | — | | | | | | | | | 1,788 | | | | | | — | | | | | | 1,788 | | | | | | — | | | | | | | | | 1,788 | | |
Cost of sales
|
| | | | | | | | | | — | | | | | | | | | (1,531) | | | | | | — | | | | | | (1,531) | | | | | | — | | | | | | | | | (1,531) | | |
Gross Profit
|
| | | | | | | | | | — | | | | | | | | | 257 | | | | | | — | | | | | | 257 | | | | | | — | | | | | | | | | 257 | | |
Amortization and depreciation
|
| | | | | | | | | | — | | | | | | | | | — | | | | | | (173,971) | | | | | | (173,971 | | | | | | — | | | | | | | | | (173,971) | | |
Consulting and professional
fees |
| | | | | | | | | | — | | | | | | | | | — | | | | | | (454,721) | | | | | | (454,721 | | | | | | — | | | | | | | | | (454,721) | | |
General & Administration
expenses |
| | | | | | | | | | — | | | | | | | | | (1,408) | | | | | | (163,654) | | | | | | (165,062 | | | | | | — | | | | | | | | | (163,654) | | |
Office expenses
|
| | | | | | | | | | — | | | | | | | | | | | | | | | (14,171) | | | | | | (14,171 | | | | | | — | | | | | | | | | (14,171) | | |
Personnel expenses
|
| | | | | | | | | | — | | | | | | | | | | | | | | | (223,345) | | | | | | (223,345 | | | | | | | | | | | | | | | (223,345) | | |
Short term accommodation
expense |
| | | | | | | | | | — | | | | | | | | | | | | | | | (31,912) | | | | | | (31,912 | | | | | | — | | | | | | | | | (31,912) | | |
Travel expenses
|
| | | | | | | | | | — | | | | | | | | | | | | | | | (4,789) | | | | | | (4,789 | | | | | | — | | | | | | | | | (4,789) | | |
Loss from Operations
|
| | | | | | | | | | — | | | | | | | | | (1,151) | | | | | | (1,066,563)) | | | | | | (1,067,714) | | | | | | — | | | | | | | | | (1,067,714) | | |
Interest income
|
| | | | | | | | | | — | | | | | | | | | 1 | | | | | | 9,529 | | | | | | 9,530 | | | | | | — | | | | | | | | | 9,530 | | |
Interest expenses
|
| | | | | | | | | | — | | | | | | | | | — | | | | | | (487,069) | | | | | | (487,069) | | | | | | (749,469) | | | |
4(b)
|
| | | | (1,236,538) | | |
Foreign exchange gain
|
| | | | | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | | | | — | | |
Other income
|
| | | | | | | | | | | | | | | | | | | 136 | | | | | | — | | | | | | 136 | | | | | | | | | | | | | | | 136 | | |
Net loss from operations
|
| | | | | | | | | | — | | | | | | | | | (1,014) | | | | | | (1,544,103) | | | | | | (1,545,117) | | | | | | (749,469) | | | | | | | | | (2,294,586) | | |
Foreign exchange translation
|
| | | | | | | | | | — | | | | | | | | | (22) | | | | | | 604,902 | | | | | | 604,880 | | | | | | — | | | | | | | | | 604,880 | | |
Net and comprehensive loss
|
| | | | | | | | | | — | | | | | | | | | (1,036) | | | | | | (939,201) | | | | | | (940,237) | | | | | | (749,469) | | | | | | | | | (1,689,706) | | |
Basic and dilutive loss per ordinary share
|
| | | | | | | | | | — | | | | | | | | | (518.20) | | | | | | (6.95) | | | | | | | | | | | | | | | | | | | | | (0.06) | | |
Weighted average number of ordinary shares outstanding
|
| | | | | | | | | | 1,200 | | | | | | | | | 2 | | | | | | 222,212 | | | | | | | | | | | | 21,993,912 | | | |
4(a,b,c,d&e)
|
| | | | 28,313,132 | | |
| | | | | |
Akanda
Corp. |
| |
Cannahealth
|
| |
Bophelo
Holdings |
| |
Canmart
|
| |
Bophelo Bio
Science |
| |
Proforma
Adjustments |
| |
Notes
|
| |
Proforma As
Adjusted |
| |||||||||||||||||||||
| | |
$
|
| |
31 August
2021 |
| |
31 December
2020 |
| |
31 August
2021 |
| |
31 December
2020 |
| |
31 December
2020 |
| | | | | | | | | | | | | | | | |||||||||||||||
Sales
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,062 | | | | | | — | | | | | | — | | | | | | | | | 2,062 | | |
Cost of sales
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,809) | | | | | | — | | | | | | — | | | | | | | | | (1,809) | | |
Gross Profit
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 253 | | | | | | — | | | | | | — | | | | | | | | | 253 | | |
Amortisation and depreciation
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | (248,743) | | | | | | — | | | | | | | | | (248,873) | | |
Consulting and professional fees
|
| | | | | | | (31,898) | | | | | | — | | | | | | — | | | | | | (31) | | | | | | (701,985) | | | | | | — | | | | | | | | | (702,016) | | |
Fair value adjustment
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (58,429) | | | | | | — | | | | | | | | | (58,429) | | |
Lease costs
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (45,482) | | | | | | — | | | | | | | | | (45,482) | | |
Office expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (26,874) | | | | | | — | | | | | | | | | (26,874) | | |
Personnel expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (374,900) | | | | | | — | | | | | | | | | (374,900) | | |
Travel expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,154) | | | | | | — | | | | | | | | | (5,154) | | |
General & administrative expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,592) | | | | | | (201,768) | | | | | | — | | | | | | | | | (204,360) | | |
Loss from Operations
|
| | | | | | | (31,898) | | | | | | — | | | | | | — | | | | | | (2,370) | | | | | | (1,663,335) | | | | | | — | | | | | | | | | (1,665,705) | | |
Finance income
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 1 | | | | | | 10,188 | | | | | | — | | | | | | | | | 10,188 | | |
Finance expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (645,162) | | | | | | — | | | | | | | | | (607,153) | | |
Other income
|
| | | | | | | | | | | | | | | | | | | | | | | | | 108 | | | | | | — | | | | | | | | | | | | | | | | | |
Net loss from operations
|
| | | | | | | (31,898) | | | | | | — | | | | | | — | | | | | | (2,261) | | | | | | (2,298,310) | | | | | | — | | | | | | | | | (2,300,571) | | |
Foreign exchange translation
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (116) | | | | | | 150,742 | | | | | | — | | | | | | | | | 150,626 | | |
Net and comprehensive loss
|
| | | | | | | (31,898) | | | | | | — | | | | | | — | | | | | | (2,377) | | | | | | (2,147,568) | | | | | | — | | | | | | | | | (2,149,945) | | |
Basic and dilutive loss per ordinary share
|
| | | | | | | (0.01) | | | | | | — | | | | | | — | | | | | | (1,189) | | | | | | (9.66) | | | | | | — | | | | | | | | | (0.08) | | |
Weighted average number of ordinary shares
outstanding |
| | | | | | | 6,095,705 | | | | | | 1,200 | | | | | | 100 | | | | | | 2 | | | | | | 222,212 | | | | | | 28,430,112 | | | |
4(a b &c)
|
| | | | 28,473,320 | | |
| | |
$
|
| |
Akanda
Corp. |
| |
Cannahealth
|
| |
Bophelo
Holdings |
| |
Canmart
|
| |
Bophelo Bio
Science |
| |
Total
|
| |
Proforma
Adjustments |
| |
Notes
|
| |
Proforma As
Adjusted |
| ||||||||||||||||||||||||
| | | | | |
N/A
|
| |
N/A
|
| |
N/A
|
| |
31 December
2019 |
| |
31 December
2019 |
| | | | | | | | | | | | | | | | | | | | | | |||||||||||||||
Sales
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
Cost of sales
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
Gross Profit
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
Amortisation and depreciation
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (198,824) | | | | | | (198,824) | | | | | | — | | | | | | | | | (198,824) | | |
Consulting and professional fees
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (365,641) | | | | | | (365,641) | | | | | | — | | | | | | | | | (365,641) | | |
Biological Assets costs
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
Short term accommodation expense
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (26,269) | | | | | | (26,269) | | | | | | — | | | | | | | | | (26,269) | | |
Office expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (13,116) | | | | | | (13,116) | | | | | | — | | | | | | | | | (13,116) | | |
Personnel expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (100,256) | | | | | | (100,256) | | | | | | — | | | | | | | | | (100,256) | | |
Travel expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (30,582) | | | | | | (30,582) | | | | | | — | | | | | | | | | (30,582) | | |
General & Administration expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (32) | | | | | | (166,515) | | | | | | (166,547) | | | | | | — | | | | | | | | | (166,547) | | |
Loss from Operations
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (32) | | | | | | (901,203) | | | | | | (901,235) | | | | | | — | | | | | | | | | (901,235) | | |
Finance income
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 399 | | | | | | 401 | | | | | | — | | | | | | | | | 401 | | |
Finance expenses
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (493,807) | | | | | | (493,807) | | | | | | (1,100,000) | | | |
4(d)
|
| | | | (1,593,807) | | |
Other income
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | |
Net loss from operations
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (30) | | | | | | (1,394,611) | | | | | | (1,394,641) | | | | | | (1,100,000 | | | | | | | | | (2,494,641) | | |
Foreign exchange translation
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (1) | | | | | | (42,565) | | | | | | (42,566) | | | | | | — | | | | | | | | | (42,566) | | |
Net and comprehensive loss
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (31) | | | | | | (1,437,176) | | | | | | (1,437,207) | | | | | | (1,100,000 | | | | | | | | | (2,537,207) | | |
Basic and dilutive loss per ordinary
share |
| | | | | | | — | | | | | | — | | | | | | — | | | | | | (15.50) | | | | | | (33.26) | | | | | | | | | | | | — | | | | | | | | | (0.12) | | |
Weighted average number of ordinary shares outstanding
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | | | | 43,206 | | | | | | | | | | | | 28,430,112 | | | |
4(a,b,c&d)
|
| | | | 28,473,320 | | |
| | |
Page
|
|
AKANDA CORP. | | | | |
| | | ||
Financial Statements: | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | |
Note
|
| |
August 31,
2021 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets
|
| | | | | | | | | | | | |
Cash, held in trust
|
| | | | | | | | | $ | 250,001 | | |
Total Current Assets
|
| | | | | | | | | | 250,001 | | |
Total Assets
|
| | | | | | | | | $ | 250,001 | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | | | | | | | $ | 27,635 | | |
Loan from shareholder
|
| | | | | | | | | | 4,263 | | |
Total Liabilities
|
| | | | | | | | | | 31,898 | | |
Shareholders’ Equity | | | | | | | | | | | | | |
Share capital
|
| | | | 5 | | | | | $ | 250,001 | | |
Accumulated deficit
|
| | | | | | | | | | (31,898) | | |
Total Shareholders’ Equity
|
| | | | | | | | | | 218,103 | | |
Total Liabilities and Shareholders’ Equity
|
| | | | | | | | | $ | 250,001 | | |
| | |
July 16, 2021
(Inception) to August 31, 2021 |
| |||
Operating expenses: | | | | | | | |
Legal fees
|
| | | $ | 31,898 | | |
Total operating expenses
|
| | | | 31,898 | | |
Net and comprehensive loss
|
| | | $ | (31,898) | | |
| | |
Note
|
| |
Share
Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholders’ Equity |
| ||||||||||||
Inception, July 16, 2021
|
| | | | | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Share issuance
|
| | | | 5 | | | | | | 250,001 | | | | | | — | | | | | | 250,001 | | |
Net loss
|
| | | | | | | | | | — | | | | | | (31,898) | | | | | | (31,898) | | |
Balance, August 31, 2021
|
| | | | | | | | | $ | 250,001 | | | | | $ | (31,898) | | | | | $ | 218,103 | | |
| | |
Note
|
| |
July 16, 2021
(Inception) to August 31, 2021 |
| |||
Cash flows from Operating Activities | | | | | | | | | | |
Net income
|
| | | | | | $ | (31,898) | | |
Increase in accounts payable
|
| | | | | | | 27,635 | | |
Cash used in operating activities
|
| | | | | | $ | (4,263) | | |
Cash flows from Financing Activities | | | | | | | | | | |
Proceeds from share issuances
|
| | | | | | $ | 250,001 | | |
Loan received from shareholder
|
| | | | | | | 4,263 | | |
Cash flows provided by financing activities
|
| | | | | | $ | 254,264 | | |
Change in cash during the period
|
| | | | | | $ | 250,001 | | |
Cash at beginning of period
|
| | | | | | | — | | |
Cash at end of period
|
| | | | | | $ | 250,001 | | |
| | |
Number of
common shares |
| |
Share capital
2021 |
| ||||||
Inception at July 16, 2021
|
| | | | — | | | | | | — | | |
Shares issued to founders
|
| | | | 5,626,806 | | | | | | 1 | | |
Shares issued- August 26, 2021
|
| | | | 468,900 | | | | | | 250,000 | | |
Issued and outstanding at August 31, 2021
|
| | | | 6,095,706 | | | | | $ | 250,001 | | |
| | |
Page
|
|
CANNAHEALTH LIMITED | | | | |
| | | ||
Financial Statements: | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | |
Note
|
| |
December 31,
2020 |
| |||
ASSETS | | | | | | | | | | |
Current assets | | | | | | | | | | |
Cash, held in trust
|
| | | | | | $ | 1,477 | | |
Total Assets
|
| | | | | | $ | 1,477 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY | | | | | | | | | | |
Shareholder’s Equity | | | | | | | | | | |
Share capital
|
| |
5
|
| | | $ | 1,477 | | |
Accumulated deficit
|
| | | | | | | — | | |
Total Shareholder’s Equity
|
| | | | | | | 1,477 | | |
Total Liabilities and Shareholder’s Equity
|
| | | | | | $ | 1,477 | | |
| | |
July 1, 2020
(Inception) to December 31, 2020 |
| |||
Net sales
|
| | | $ | — | | |
Net and comprehensive loss
|
| | | $ | — | | |
| | |
Note
|
| |
Share
Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholder’s Equity |
| ||||||||||||
Inception, July 1, 2020
|
| | | | | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Share issuance at inception
|
| | | | 5 | | | | | | 1,477 | | | | | | — | | | | | | 1,477 | | |
Balance, December 31, 2020
|
| | | | | | | | | $ | 1,477 | | | | | $ | — | | | | | $ | 1,477 | | |
| | |
July 1, 2020
(Inception) to December 31, 2020 |
| |||
Cash Flows from Operating Activities
|
| | | $ | — | | |
Cash Flows from Financing Activities | | | | | | | |
Proceeds from share issue
|
| | | | 1,477 | | |
Cash flows provided by financing activities
|
| | | | 1,477 | | |
Net change in cash
|
| | | $ | 1,477 | | |
Cash at beginning of period
|
| | | | — | | |
Cash at end of period
|
| | | $ | 1,477 | | |
| | |
Number of
ordinary shares |
| |
Share capital
2020 |
| ||||||
Inception at July 1, 2020 | | | | | | | | | | | | | |
Share issuance at inception
|
| | | | 1,200 | | | | | $ | 1,477 | | |
Issued and outstanding at December 31, 2020
|
| | | | | | | | | | 1,477 | | |
| | |
Page
|
|
BOPHELO HOLDINGS LTD | | | | |
| | | ||
Financial Statements: | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | |
Note
|
| |
August 31,
2021 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | $ | 138 | | |
Total assets
|
| | | | | | | | | $ | 138 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY | | | | | | | | | | | | | |
Shareholder’s Equity | | | | | | | | | | | | | |
Share capital
|
| | | | 5 | | | | | $ | 138 | | |
Accumulated deficit
|
| | | | | | | | | | — | | |
Total Shareholder’s Equity
|
| | | | | | | | | $ | 138 | | |
Total Liabilities and Shareholder’s Equity
|
| | | | | | | | | $ | 138 | | |
| | |
August 4, 2021
(Inception) to August 31, 2021 |
| |||
Net sales
|
| | | $ | — | | |
Net and Comprehensive loss
|
| | | $ | — | | |
| | |
Note
|
| |
Share
Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholder’s Equity |
| ||||||||||||
Inception, August 4, 2021
|
| | | | | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Share issuance at inception
|
| | | | 5 | | | | | | 138 | | | | | | — | | | | | | 138 | | |
Balance, August 31, 2021
|
| | | | | | | | | $ | 138 | | | | | $ | — | | | | | $ | 138 | | |
| | |
August 4, 2021
(Inception) to August 31, 2021 |
| |||
Cash Flows from Operating Activities
|
| | | $ | — | | |
Cash flows from Financing Activities | | | | | | | |
Proceeds from share issue
|
| | | | 138 | | |
Cash flows provided by financing activities
|
| | | | 138 | | |
Net change in cash
|
| | | | 138 | | |
Cash at beginning of period
|
| | | | — | | |
Cash at end of period
|
| | | $ | 138 | | |
| | |
Number of
ordinary shares |
| |
Share capital
2021 |
| ||||||
Inception at August 4, 2021 | | | | | | | | | | | | | |
Share issuance at inception
|
| | | | 100 | | | | | $ | 138 | | |
Issued and outstanding at August 31, 2021
|
| | | | 100 | | | | | $ | 138 | | |
| | |
Page
|
|
BOPHELO BIO SCIENCE AND WELLNESS (PTY) LTD | | | | |
| | | ||
Financial Statements: | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| | |
Note
|
| |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | | | | | | | | 10,120 | | | | | | 818,447 | | |
Prepayments
|
| | | | 8 | | | | | | | | | | | | 113,485 | | | | | | 310 | | |
Shareholders’ loan
|
| | | | | | | | | | | | | | | | 7 | | | | | | 156 | | |
Loans and borrowings
|
| | | | 10 | | | | | | | | | | | — | | | | | | 6,916 | | | |
Total Current Assets
|
| | | | | | | | | | | | | | | 123,612 | | | | | | 825,829 | | | |
Non-Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Property, plant and equipment
|
| | | | 5 | | | | | | | | | | | | 742,887 | | | | | | 697,836 | | |
Capital work in progress
|
| | | | 9 | | | | | | | | | | | | 883,145 | | | | | | 616,377 | | |
Right-of-use asset
|
| | | | 7 | | | | | | | | | | | | 2,199,779 | | | | | | 2,409,933 | | |
Intangible assets
|
| | | | 6 | | | | | | | | | | | 304,260 | | | | | | 358,146 | | | |
Total Non-Current Assets
|
| | | | | | | | | | | | | | | 4,130,071 | | | | | | 4,082,292 | | | |
Total Assets
|
| | | | | | | | | | | | | | | 4,253,683 | | | | | | 4,908,121 | | | |
LIABILITIES AND SHAREHOLDER’S EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | 12 | | | | | | | | | | | | 182,878 | | | | | | 43,006 | | |
Loans and borrowings
|
| | | | 10 | | | | | | | | | | | | 2,263,605 | | | | | | — | | |
Lease liability
|
| | | | 11 | | | | | | | | | | | 283,976 | | | | | | 294,944 | | | |
Total current liabilities
|
| | | | | | | | | | | | | | | 2,730,459 | | | | | | 337,950 | | | |
Non-Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Lease liability
|
| | | | 11 | | | | | | | | | | | | 2,598,176 | | | | | | 2,408,074 | | |
Loans and borrowings
|
| | | | 10 | | | | | | | | | | | | 3,977,108 | | | | | | 5,066,590 | | |
Total Non-Current Liabilities
|
| | | | | | | | | | | | | | | | 6,575,284 | | | | | | 7,474,664 | | |
Total Liabilities
|
| | | | | | | | | | | | | | | | 9,305,743 | | | | | | 7,812,614 | | |
Shareholder’s Deficit | | | | | | | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | 13 | | | | | | | | | | | | 156 | | | | | | 156 | | |
Reserves
|
| | | | 13 | | | | | | | | | | | | 7 | | | | | | 7 | | |
Accumulated deficit
|
| | | | | | | | | | | | | | | | (5,160,401) | | | | | | (2,862,091) | | |
Accumulated other comprehensive income (loss)
|
| | | | | | | | | | | | | | | | 108,177 | | | | | | (42,565) | | |
Total shareholder’s deficit
|
| | | | | | | | | | | | | | | | (5,052,061) | | | | | | (2,904,493) | | |
Total Liabilities and Shareholder’s Deficit
|
| | | | | | | | | | | | | | | | 4,253,683 | | | | | | 4,908,121 | | |
| | |
$
|
| |
2020
|
| |
2019
|
| |||||||||
Sales
|
| | | | | | | | | | — | | | | | | — | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | |
Amortization and depreciation
|
| | | | | | | | | | 248,743 | | | | | | 198,824 | | |
Consulting and professional fees
|
| | | | | | | | | | 701,985 | | | | | | 365,641 | | |
Biological Assets costs
|
| | | | | | | | | | 58,429 | | | | | | — | | |
Short term accommodation expense
|
| | | | | | | | | | 45,482 | | | | | | 26,269 | | |
Office expenses
|
| | | | | | | | | | 26,874 | | | | | | 13,116 | | |
Personnel expenses
|
| | | | | | | | | | 374,900 | | | | | | 100,256 | | |
Travel expenses
|
| | | | | | | | | | 5,154 | | | | | | 30,582 | | |
General & Administration expenses
|
| | | | | | | | | 201,768 | | | | | | 166,515 | | | |
Loss from operations
|
| | | | | | | | | | (1,663,334) | | | | | | (901,203) | | |
Interest income
|
| | | | | | | | | | 10,187 | | | | | | 399 | | |
Interest expenses
|
| | | | | | | | | | (645,162) | | | | | | (493,807) | | |
Net loss before income tax
|
| | | | | | | | | | (2,298,310) | | | | | | (1,394,611) | | |
Income tax expense
|
| | | | | | | | | | — | | | | | | — | | |
Net loss for the year
|
| | | | | | | | | | (2,298,310) | | | | | | (1,394,611) | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation
|
| | | | | | | | | | 150,742 | | | | | | (42,565) | | |
Total comprehensive loss for the year
|
| | | | | | | | | | (2,147,568) | | | | | | (1,437,176) | | |
Basic and diluted loss per ordinary share
|
| | | | | | | | | | (9.66) | | | | | | (33.26) | | |
Weighted average number of ordinary shares outstanding
|
| | | | | | | | | | 222,212 | | | | | | 43,206 | | |
| | |
$
|
| |
Number
of Shares |
| |
Share
Capital |
| |
Reserves
|
| |
Accumulated
Deficit |
| |
Accumulated
other comprehensive income |
| |
Total
Shareholders’ Deficit |
| |||||||||||||||||||||
Balance, January 1, 2019
|
| | | | | | | | | | 100 | | | | | | 7 | | | | | | — | | | | | | (1,467,480) | | | | | | | | | | | | (1,467,473) | | |
Effect of change in par value per share
|
| | | | | | | | | | — | | | | | | (7) | | | | | | 7 | | | | | | — | | | | | | — | | | | | | — | | |
Share issuance
|
| | | | | | | | | | 222,112 | | | | | | 156 | | | | | | — | | | | | | — | | | | | | — | | | | | | 156 | | |
Effect of foreign exchange translation
|
| | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | (42,565) | | | | | | (42,565) | | |
Net loss
|
| | | | | | | | | — | | | | | | — | | | | | | | | | | | | (1,394,611) | | | | | | | | | | | | (1,394,611) | | | |
Balance, December 31, 2019
|
| | | | | | | | | | 222,212 | | | | | | 156 | | | | | | 7 | | | | | | (2,862,091) | | | | | | (42,565) | | | | | | (2,904,493) | | |
Effect of foreign exchange translation
|
| | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | | | | | 150,742 | | | | | | 150,742 | | |
Net loss
|
| | | | | | | | | | — | | | | | | — | | | | | | | | | | | | (2,298,310) | | | | | | | | | | | | (2,298,310) | | |
Balance, December 31, 2020
|
| | | | | | | | | | 222,212 | | | | | | 156 | | | | | | 7 | | | | | | (5,160,401) | | | | | | 108,177 | | | | | | (5,052,061) | | |
| | |
$
|
| |
2020
|
| |
2019
|
| |||||||||
Cash Flows from Operating Activities | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | | | | | | | (2,298,310) | | | | | | (1,394,611) | | |
Non-cash items included in net income: | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | | | | | | | 248,743 | | | | | | 198,824 | | |
Interest expenses
|
| | | | | | | | | | 645,162 | | | | | | 493,807 | | |
Write off of property, plant and equipment
|
| | | | | | | | | | 23,748 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | |
Prepayments
|
| | | | | | | | | | (113,175) | | | | | | (310) | | |
Trade and other payables
|
| | | | | | | | | 139,873 | | | | | | 42,283 | | | |
Net cash used in operating activities
|
| | | | | | | | | | (1,353,959) | | | | | | (660,007) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | |
Additions to capital WIP
|
| | | | | | | | | | (266,768) | | | | | | (616,377) | | |
Additions to property, plant and equipment
|
| | | | | | | | | | (172,369) | | | | | | (53,920) | | |
Proceeds from advances issued
|
| | | | | | | | | | 6,934 | | | | | | (6,848) | | |
Net cash used in investing activities
|
| | | | | | | | | | (432,203) | | | | | | (677,145) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Loans received
|
| | | | | | | | | | 1,169,796 | | | | | | 2,116,312 | | |
Loans repaid
|
| | | | | | | | | | (137,788) | | | | | | — | | |
Net cash provided by financing activities:
|
| | | | | | | | | | 1,032,008 | | | | | | 2,116,312 | | |
Net change in cash
|
| | | | | | | | | | (754,155) | | | | | | 779,160 | | |
Effects of currency translation on cash
|
| | | | | | | | | | (54,172) | | | | | | 15,143 | | |
Cash at beginning of year
|
| | | | | | | | | | 818,447 | | | | | | 24,144 | | |
Cash at end of year
|
| | | | | | | | | | 10,120 | | | | | | 818,447 | | |
Supplemental cash flow disclosure Interest paid
|
| | | | | | | | | $ | — | | | | | $ | — | | |
Tax paid
|
| | | | | | | | | $ | — | | | | | $ | — | | |
|
Plant and equipment
|
| | 10 years | |
|
Leasehold improvements
|
| | 20 years | |
|
Motor vehicles
|
| | 4 years | |
| | |
$
|
| |
Plant and
equipment |
| |
Leasehold
improvement |
| |
Motor
vehicles |
| |
Total
|
| ||||||||||||
Cost at January 1, 2019
|
| | | | | | | 438,432 | | | | | | 286,482 | | | | | | — | | | | | | 724,914 | | |
Additions
|
| | | | | | | 1,911 | | | | | | 13,419 | | | | | | 38,590 | | | | | | 53,920 | | |
Foreign exchange movements
|
| | | | | | | 8,701 | | | | | | 4,869 | | | | | | (163) | | | | | | 13,407 | | |
Cost at December 31, 2019
|
| | | | | | | 449,044 | | | | | | 304,770 | | | | | | 38,427 | | | | | | 792,241 | | |
Additions
|
| | | | | | | 172,369 | | | | | | — | | | | | | — | | | | | | 172,369 | | |
Write-offs
|
| | | | | | | (23,748) | | | | | | — | | | | | | — | | | | | | (23,748) | | |
Foreign exchange movements
|
| | | | | | | (11,304) | | | | | | (11,333) | | | | | | (1,429) | | | | | | (24,066) | | |
Cost at December 31, 2020
|
| | | | | | | 586,361 | | | | | | 293,437 | | | | | | 36,998 | | | | | | 916,796 | | |
Accumulated depreciation at January 1, 2019
|
| | | | | | | (21,922) | | | | | | (7,162) | | | | | | — | | | | | | (29,084) | | |
Depreciation
|
| | | | | | | (44,325) | | | | | | (15,038) | | | | | | (4,757) | | | | | | (64,120) | | |
Foreign exchange movements
|
| | | | | | | (866) | | | | | | (289) | | | | | | (46) | | | | | | (1,201) | | |
Accumulated Depreciation at December 31, 2019
|
| | | | | | | (67,113) | | | | | | (22,489) | | | | | | (4,803) | | | | | | (94,405) | | |
Depreciation
|
| | | | | | | (60,212) | | | | | | (14,950) | | | | | | (9,425) | | | | | | (84,587) | | |
Foreign exchange movements
|
| | | | | | | 3,615 | | | | | | 1,114 | | | | | | 354 | | | | | | 5,083 | | |
Accumulated Depreciation at December 31, 2020
|
| | | | | | | (123,710) | | | | | | (36,325) | | | | | | (13,874) | | | | | | (173,909) | | |
Carrying value at January 1, 2019
|
| | | | | | | 416,510 | | | | | | 279,320 | | | | | | — | | | | | | 695,830 | | |
Additions
|
| | | | | | | 1,911 | | | | | | 13,419 | | | | | | 38,590 | | | | | | 53,920 | | |
Depreciation
|
| | | | | | | (44,325) | | | | | | (15,038) | | | | | | (4,757) | | | | | | (64,120) | | |
Foreign exchange movements
|
| | | | | | | 7,835 | | | | | | 4,580 | | | | | | (209) | | | | | | 12,206 | | |
Carrying value at December 31, 2019
|
| | | | | | | 381,931 | | | | | | 282,281 | | | | | | 33,624 | | | | | | 697,836 | | |
Additions
|
| | | | | | | 172,369 | | | | | | — | | | | | | — | | | | | | 172,369 | | |
Disposals
|
| | | | | | | (23,748) | | | | | | — | | | | | | — | | | | | | (23,748) | | |
Depreciation
|
| | | | | | | (60,212) | | | | | | (14,950) | | | | | | (9,425) | | | | | | (84,587) | | |
Foreign exchange movements
|
| | | | | | | (7,689) | | | | | | (10,219) | | | | | | (1,075) | | | | | | (18,983) | | |
Carrying value at December 31, 2020
|
| | | | | | | 462,651 | | | | | | 257,112 | | | | | | 23,124 | | | | | | 742,887 | | |
| | |
$
|
| |
Licenses
|
| |
Total
|
| ||||||
Cost at January 1, 2019
|
| | | | | | | 413,223 | | | | | | 413,223 | | |
Foreign exchange movements
|
| | | | | | | 8,125 | | | | | | 8,125 | | |
Cost at December 31, 2019
|
| | | | | | | 421,348 | | | | | | 421,348 | | |
Foreign exchange movements
|
| | | | | | | (15,668) | | | | | | (15,668) | | |
Cost at December 31, 2020
|
| | | | | | | 405,680 | | | | | | 405,680 | | |
Accumulated amortization at January 1, 2019
|
| | | | | | | (20,661) | | | | | | (20,661) | | |
Amortization
|
| | | | | | | (41,725) | | | | | | (41,725) | | |
Foreign exchange movement
|
| | | | | | | (816) | | | | | | (816) | | |
Accumulated amortization at December 31, 2019
|
| | | | | | | (63,202) | | | | | | (63,202) | | |
Accumulated amortization at December 31, 2019
|
| | | | | | | (63,202) | | | | | | (63,202) | | |
Amortization
|
| | | | | | | (41,337) | | | | | | (41,337) | | |
Foreign exchange translation
|
| | | | | | | 3,119 | | | | | | 3,119 | | |
Accumulated amortization at December 31, 2020
|
| | | | | | | (101,420) | | | | | | (101,420) | | |
Carrying value at January 1, 2019
|
| | | | | | | 392,562 | | | | | | 392,562 | | |
Amortization
|
| | | | | | | (41,725) | | | | | | (41,725) | | |
Foreign exchange movement
|
| | | | | | | 7,309 | | | | | | 7,309 | | |
Carrying value at December 31, 2019
|
| | | | | | | 358,146 | | | | | | 358,146 | | |
Amortization
|
| | | | | | | (41,337) | | | | | | (41,337) | | |
Foreign exchange translation
|
| | | | | | | (12,549) | | | | | | (12,549) | | |
Carrying value at December 31, 2020
|
| | | | | | | 304,260 | | | | | | 304,260 | | |
| | |
$
|
| |
Land Lease
|
| |
Total
|
| ||||||
Cost: | | | | | | | | | | | | | | | | |
Balance as at January 1, 2019
|
| | | | | | | — | | | | | | — | | |
Additions during the year
|
| | | | | | | 2,503,827 | | | | | | 2,503,827 | | |
Balance as at December 31, 2019
|
| | | | | | | 2,503,827 | | | | | | 2,503,827 | | |
Additions during the year
|
| | | | | | | — | | | | | | — | | |
Balance as at December 31, 2020
|
| | | | | | | 2,503,827 | | | | | | 2,503,827 | | |
Accumulated Depreciation: | | | | | | | | | | | | | | | | |
Balance as at January 1, 2019
|
| | | | | | | — | | | | | | — | | |
Charge for the year
|
| | | | | | | 92,979 | | | | | | 92,979 | | |
Effects of Currency Translation
|
| | | | | | | 914 | | | | | | 914 | | |
Balance as at December 31, 2019
|
| | | | | | | 93,893 | | | | | | 93,893 | | |
Charge for the year
|
| | | | | | | 122,820 | | | | | | 122,820 | | |
Effects of Currency Translation
|
| | | | | | | 87,335 | | | | | | 87,335 | | |
Balance as at December 31, 2020
|
| | | | | | | 304,048 | | | | | | 304,048 | | |
Net Book Value: | | | | | | | | | | | | | | | | |
At December 31, 2019
|
| | | | | | | 2,409,934 | | | | | | 2,409,934 | | |
At December 31, 2020
|
| | | | | | | 2,199,779 | | | | | | 2,199,779 | | |
| | |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Prepaid expenses
|
| | | | | | | 113,485 | | | | | | 310 | | |
| | | | | | | | 113,485 | | | | | | 310 | | |
| | |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Capital work in progress
|
| | | | | | | 883,145 | | | | | | 616,377 | | |
| | | | | | | | 883,145 | | | | | | 616,377 | | |
| | |
$
|
| |
Louisa
Mojela |
| |
Granny
Seape |
| |
1942
Capital |
| |
Seedy
Lette |
| |
GMG/
Middleton |
| |
Halo
Collective Inc. |
| |
Total
|
| |||||||||||||||||||||
Value at January 1, 2019
|
| | | | | | | 994,506 | | | | | | 232,276 | | | | | | 1,139,483 | | | | | | 213,020 | | | | | | — | | | | | | — | | | | | | 2,579,284 | | |
Loans issued
|
| | | | | | | 1,043,690 | | | | | | 34,771 | | | | | | — | | | | | | — | | | | | | 1,037,852 | | | | | | (6,848) | | | | | | 2,109,464 | | |
Interest on loans
|
| | | | | | | 122,183 | | | | | | 28,243 | | | | | | 122,057 | | | | | | 22,818 | | | | | | 1,254 | | | | | | — | | | | | | 296,555 | | |
Foreign exchange movements
|
| | | | | | | 31,017 | | | | | | 5,187 | | | | | | 23,606 | | | | | | 4,413 | | | | | | 10,216 | | | | | | (68) | | | | | | 74,371 | | |
Value at December 31,
2019 |
| | | | | | | 2,191,396 | | | | | | 300,477 | | | | | | 1,285,146 | | | | | | 240,251 | | | | | | 1,049,322 | | | | | | (6,916) | | | | | | 5,059,674 | | |
Current portion
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,916) | | | | | | (6,916) | | |
Non-current portion
|
| | | | | | | 2,191,396 | | | | | | 300,477 | | | | | | 1,285,146 | | | | | | 240,251 | | | | | | 1,049,322 | | | | | | — | | | | | | 5,066,590 | | |
Value at December 31,
2019 |
| | | | | | | 2,191,396 | | | | | | 300,477 | | | | | | 1,285,146 | | | | | | 240,251 | | | | | | 1,049,322 | | | | | | (6,916) | | | | | | 5,059,674 | | |
Loans issued
|
| | | | | | | 438,420 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 731,375 | | | | | | 1,169,796 | | |
Loans carried off
|
| | | | | | | (1,147,260) | | | | | | (307,337) | | | | | | (1,314,361) | | | | | | (245,712) | | | | | | (1,030,158) | | | | | | 4,044,828 | | | | | | — | | |
Loans repaid
|
| | | | | | | (137,788) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (137,788) | | |
Interest on loans
|
| | | | | | | 278,901 | | | | | | 12,656 | | | | | | 54,190 | | | | | | 10,130 | | | | | | 753 | | | | | | — | | | | | | 356,631 | | |
Foreign exchange movements
|
| | | | | | | (71,182) | | | | | | (5,796) | | | | | | (24,974) | | | | | | (4,669) | | | | | | (19,917) | | | | | | (81,061) | | | | | | (207,598) | | |
Value at December 31,
2020 |
| | | | | | | 1,552,487 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,688,226 | | | | | | 6,240,714 | | |
Current portion
|
| | | | | | | 1,552,487 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 711,118 | | | | | | 2,263,605 | | |
Non-current portion
|
| | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,977,108 | | | | | | 3,977,108 | | |
Value at December 31,
2020 |
| | | | | | | 1,552,487 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,688,226 | | | | | | 6,240,714 | | |
| | |
$
|
| |
Land Lease
|
| |
Total
|
| ||||||
Balance as at January 1, 2019
|
| | | | | |
|
—
|
| | | |
|
—
|
| |
Additions: | | | | | | | | | | | | | | | | |
Lease Liability – Initial adoption of IFRS 16
|
| | | | | | | 2,503,827 | | | | | | 2,503,827 | | |
Interest Expense
|
| | | | | | | 197,252 | | | | | | 197,252 | | |
Lease payments during the year
|
| | | | | | | — | | | | | | — | | |
Effects of Currency Translation
|
| | | | | | | 1,939 | | | | | | 1,939 | | |
| | | | | | | | 2,703,018 | | | | | | 2,703,018 | | |
Less: current portion
|
| | | | | | | (294,944) | | | | | | (294,944) | | |
Balance as at December 31, 2019
|
| | | | | | | 2,408,074 | | | | | | 2,408,074 | | |
Interest Expense
|
| | | | | | | 284,950 | | | | | | 284,950 | | |
Lease payments during the year
|
| | | | | | | — | | | | | | — | | |
Effects of Currency Translation
|
| | | | | | | (105,816) | | | | | | (105,816) | | |
| | | | | | | | 2,882,152 | | | | | | 2,882,152 | | |
Less: current portion
|
| | | | | | | (283,976) | | | | | | (283,976) | | |
As at December 31, 2020
|
| | | | | | | 2,598,176 | | | | | | 2,598,176 | | |
| | |
$
|
| |
December 31,
2020 |
| |||
Amounts payable within 1 year
|
| | | | | | | 283,976 | | |
Amounts payable between 1 and 5 years
|
| | | | | | | 1,135,903 | | |
Amounts payable after 5 years
|
| | | | | | | 3,762,677 | | |
Total payments
|
| | | | | | | 5,182,556 | | |
Interest on lease agreement
|
| | | | | | | (2,300,404) | | |
| | | | | | | | 2,882,152 | | |
| | |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Trade payables
|
| | | | | | | 107,839 | | | | | | 31,784 | | |
Directors’ remuneration payable
|
| | | | | | | 48,584 | | | | | | 10,533 | | |
Accrued payroll taxes
|
| | | | | | | 26,455 | | | | | | 688 | | |
| | | | | | | | 182,878 | | | | | | 43,006 | | |
| | |
$
|
| |
Number of
shares |
| |
Par value
|
| |
Share
capital |
| |
Share
premium |
| |
Total
|
| |||||||||||||||
Balance at December 31, 2018
|
| | | | | | | 100 | | | | | | 0.07 | | | | | | 7 | | | | | | — | | | | | | 7 | | |
Change in par value from 1 Loti to 1 Lisente per share
|
| | | | | | | — | | | | | | — | | | | | | (7) | | | | | | 7 | | | | | | — | | |
Additional shares issued
|
| | | | | | | 222,112 | | | | | | 0.0007 | | | | | | 156 | | | | | | — | | | | | | 156 | | |
Issued and outstanding as at December 31, 2019 and 2020
|
| | | | | | | 222,212 | | | | | | 0.0007 | | | | | | 156 | | | | | | 7 | | | | | | 163 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Directors Remuneration
|
| | | | 116,448 | | | | | | 10,431 | | |
Director Professional fees
|
| | | | 121,467 | | | | | | 121,970 | | |
Key Management Remuneration
|
| | | | 268,326 | | | | | | 161,134 | | |
Short term accommodation expense
|
| | | | 45,482 | | | | | | 26,269 | | |
Office expenses for office space
|
| | | | 2,377 | | | | | | 9,388 | | |
Fuel expenses
|
| | | | — | | | | | | 4,172 | | |
Consulting fees to Seedy Lette
|
| | | | — | | | | | | 10,931 | | |
| | | | | 554,100 | | | | | | 344,295 | | |
| | |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Net loss for the year
|
| | | | | | | (2,298,310) | | | | | | (1,394,611) | | |
Statutory income tax rate
|
| | | | | | | 25% | | | | | | 25% | | |
Expected tax recovery at statutory income tax rates
|
| | | | | | | (574,578) | | | | | | (348,653) | | |
Change in deferred tax assets not recognized
|
| | | | | | | 574,578 | | | | | | 348,653 | | |
| | | | | | | | — | | | | | | — | | |
| | |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Deferred tax assets
|
| | | | | | | | | | | | | | | |
Net operating loss carried forward
|
| | | | | | | 5,160,401 | | | | | | 2,862,091 | | |
Deferred tax assets not recognized
|
| | | | | | | (5,160,401) | | | | | | (2,862,091) | | |
Net deferred tax assets
|
| | | | | | | — | | | | | | — | | |
| | |
Page
|
|
CANMART LTD | | | | |
| | | ||
Financial Statements: | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | |
Presented in US Dollars
|
| |
Note
|
| |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | | | | | | | | | | | | | | 1,907 | | | | | | 1,116 | | |
Inventory
|
| | | | | | | | | | | | | | | 611 | | | | | | — | | | |
Total Current Assets
|
| | | | | | | | | | | | | | | | 2,518 | | | | | | 1,116 | | |
Non-Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets
|
| | | | 5 | | | | | | | | | | | | 17,146 | | | | | | 16,563 | | |
Total Non-Current Assets
|
| | | | | | | | | | | | | | | | 17,146 | | | | | | 16,563 | | |
Total Assets
|
| | | | | | | | | | | | | | | | 19,664 | | | | | | 17,679 | | |
LIABILITIES AND SHAREHOLDER’S EQUITY (DEFICIT)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade and other payables
|
| | | | 7 | | | | | | | | | | | | 1,024 | | | | | | — | | |
Due to related parties
|
| | | | | | | | | | | | | | | | — | | | | | | 17,707 | | |
Total Liabilities
|
| | | | | | | | | | | | | | | | 1,024 | | | | | | 17,707 | | |
Shareholder’s Equity (Deficit) | | | | | | | | | | | | | | | | | | | | | | | | | |
Share capital
|
| | | | 8 | | | | | | | | | | | | 3 | | | | | | 3 | | |
Accumulated deficit
|
| | | | | | | | | | | | | | | | (2,291) | | | | | | (30) | | |
Other reserves
|
| | | | | | | | | | | | | | | | 21,046 | | | | | | — | | |
Accumulated other comprehensive income
|
| | | | | | | | | | | | | | | | (117) | | | | | | (1) | | |
| | | | | | | | | | | | | | | | | 18,640 | | | | | | (28) | | |
Total Liabilities and Shareholder’s Equity (Deficit)
|
| | | | | | | | | | | | | | | | 19,664 | | | | | | 17,679 | | |
Presented in US Dollars
|
| |
Note
|
| |
$
|
| |
2020
|
| |
2019
|
| |||||||||
Sales
|
| | | | | | | | | | | | | 2,062 | | | | | | — | | |
Cost of sales
|
| | | | | | | | | | | | (1,809) | | | | | | — | | | |
Gross Profit
|
| | | | | | | | | | | | | 253 | | | | | | — | | |
Consulting and professional fees
|
| | | | | | | | | | | | | 31 | | | | | | — | | |
License costs
|
| | | | | | | | | | | | | 1,491 | | | | | | — | | |
General & administrative expenses
|
| | | | | | | | | | | | | 1,101 | | | | | | 32 | | |
Total operating expenses
|
| | | | | | | | | | | | | (2,623) | | | | | | (32) | | |
Loss from Operations
|
| | | | | | | | | | | | | (2,370) | | | | | | (32) | | |
Other Income (Expense) | | | | | | | | | | | | | | | | | | | | | | |
Finance income
|
| | | | | | | | | | | | | 1 | | | | | | 2 | | |
Finance expenses
|
| | | | | | | | | | | | | — | | | | | | — | | |
Other income
|
| | | | | | | | | | | | | 108 | | | | | | — | | |
Total Other Income (Expense)
|
| | | | | | | | | | | | | 109 | | | | | | 2 | | |
Net loss before income tax
|
| | | | | | | | | | | | | (2,261) | | | | | | (30) | | |
Income tax expense
|
| | | | | | | | | | | | | — | | | | | | — | | |
Net Loss for the Year
|
| | | | | | | | | | | | | (2,261) | | | | | | (30) | | |
Other Comprehensive Loss: | | | | | | | | | | | | | | | | | | | | | | |
Exchange differences on foreign currency translation
|
| | | | | | | | | | | | | (116) | | | | | | (1) | | |
Total Comprehensive Loss
|
| | | | | | | | | | | | | (2,377) | | | | | | (31) | | |
Basic and dilutive loss per ordinary share
|
| | | | | | | | | | | | | (1,188.50) | | | | | | (15.50) | | |
Weighted average number of ordinary shares outstanding
|
| | | | | | | | | | | | | 2 | | | | | | 2 | | |
Presented in US Dollars
|
| |
$
|
| |
Number
of Shares |
| |
Share
Capital |
| |
Accumulated
other comprehensive income |
| |
Accumulated
Deficit |
| |
Other
Reserves |
| |
Total
Equity (Deficit) |
| |||||||||||||||||||||
Balance, December 31, 2018
|
| | | | | | | | | | 2 | | | | | | 3 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3 | | |
Issue of shares
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | |
Currency translation
|
| | | | | | | | | | — | | | | | | — | | | | | | (1) | | | | | | — | | | | | | | | | | | | (1) | | |
Net loss
|
| | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (30) | | | | | | — | | | | | | (30) | | | |
Balance, December 31, 2019
|
| | | | | | | | | | 2 | | | | | | 3 | | | | | | (1) | | | | | | (30) | | | | | | — | | | | | | (28) | | |
Currency translation
|
| | | | | | | | | | — | | | | | | — | | | | | | (116) | | | | | | — | | | | | | — | | | | | | (116) | | |
Contribution to reserves by owners of the Company
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,046 | | | | | | 21,046 | | |
Net loss
|
| | | | | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,261) | | | | | | | | | | | | (2,261) | | |
Balance, December 31, 2020
|
| | | | | | | | | | 2 | | | | | | 3 | | | | | | (117) | | | | | | (2,291) | | | | | | 21,046 | | | | | | 18,640 | | |
Presented in US Dollars
|
| |
Note
|
| |
$
|
| |
January 1, 2020 to
December 31, 2020 |
| |
January 1, 2019 to
December 31, 2019 |
| |||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | | | | | | | | | | (2,261) | | | | | | (30) | | |
Adjustments to reconcile net income to net cash provided by
(used in) operating activities: |
| | | | | | | | | | | | | — | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | | | | |
Increase in inventory
|
| | | | | | | | | | | | | (611) | | | | | | — | | |
Increase in trade and other payables
|
| | | | | | | | | | | | | 1,024 | | | | | | — | | |
Increase in due to related parties
|
| | | | | | | | | | | | 3,339 | | | | | | 17,707 | | | |
Net cash provided by operating activities
|
| | | | | | | | | | | | | 1,491 | | | | | | 17,677 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | | | | |
Payments for acquisition of cannabis licenses
|
| | | | | | | | | | | | | — | | | | | | (15,625) | | |
Net cash used in investing activities
|
| | | | | | | | | | | | | — | | | | | | (15,625) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from share subscriptions receivable
|
| | | | | | | | | | | | | — | | | | | | 2 | | |
Net cash provided by financing activities:
|
| | | | | | | | | | | | | — | | | | | | 2 | | |
Effects of foreign exchange translation on cash
|
| | | | | | | | | | | | | (700) | | | | | | (938) | | |
Net change in cash
|
| | | | | | | | | | | | | 791 | | | | | | 1,116 | | |
Cash at beginning of year
|
| | | | | | | | | | | | | 1,116 | | | | | | — | | |
Cash at end of year
|
| | | | | | | | | | | | | 1,907 | | | | | | 1,116 | | |
Supplemental cash flow information: | | | | | | | | | | | | | | | | | | | | | | |
Interest paid
|
| | | | | | | | | | | | | — | | | | | | — | | |
Taxes paid
|
| | | | | | | | | | | | | — | | | | | | — | | |
Non-cash Investing and Financing Activities: | | | | | | | | | | | | | | | | | | | | | | |
Contributions to reserves by shareholders due to waiver of balance due to related party
|
| | | | | | | | | | | | | 21,046 | | | | | | — | | |
| | |
$
|
| |
Licences
|
| |
Total
|
| ||||||
Cost at December 31, 2018
|
| | | | | | | — | | | | | | — | | |
Additions
|
| | | | | | | 15,625 | | | | | | 15,625 | | |
Amortisation
|
| | | | | | | — | | | | | | — | | |
Foreign exchange translation
|
| | | | | | | 938 | | | | | | 938 | | |
Cost at December 31, 2019
|
| | | | | | | 16,563 | | | | | | 16,563 | | |
Accumulated amortisation at December 31,2019
|
| | | | | | | — | | | | | | — | | |
Carrying value at December 31,2019
|
| | | | | | | 16,563 | | | | | | 16,563 | | |
Foreign exchange translation
|
| | | | | | | 583 | | | | | | 583 | | |
Amortisation
|
| | | | | | | — | | | | | | — | | |
Cost at December 31, 2020
|
| | | | | | | 17,146 | | | | | | 17,146 | | |
Accumulated amortisation at December 31,2020
|
| | | | | | | — | | | | | | — | | |
Carrying value at December 31,2020
|
| | | | | | | 17,146 | | | | | | 17,146 | | |
| | |
$
|
| |
December, 31
2020 |
| |
December, 31
2019 |
| ||||||
Trade receivables
|
| | | | | | | 523 | | | | | | — | | |
Allowance for bad debts
|
| | | | | | | (523) | | | | | | — | | |
| | | | | | | | — | | | | | | — | | |
| | |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Net loss for the year
|
| | | | | | | (2,261) | | | | | | (30) | | |
Statutory income tax rate
|
| | | | | | | 18% | | | | | | 19% | | |
Expected tax recovery at statutory income tax rates
|
| | | | | | | (407) | | | | | | (6) | | |
Change in deferred tax assets not recognized
|
| | | | | | | 407 | | | | | | 6 | | |
| | | | | | | | — | | | | | | — | | |
| | |
$
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Deferred tax assets | | | | | | | | | | | | | | | | |
Net operating loss carried forward
|
| | | | | | | 2,291 | | | | | | 30 | | |
Deferred tax assets not recognized
|
| | | | | | | (2,291) | | | | | | (30) | | |
Net deferred tax assets
|
| | | | | | | — | | | | | | — | | |