WIllow Biosciences ends 1Q with C$46.5M as it looks to its first CBG sales in 2Q

WIllow Biosciences ends 1Q with C$46.5M as it looks to its first CBG sales in 2Q

Proactive Investors

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Willow Biosciences Inc (TSE:WLLW) (OTCQX:CANSF) (FRA:3D7) wrapped up its first quarter with a healthy cash balance of C$46.5 million in cash on hand, according to its recently released results.  During the three-month period ended March 31, 2021, the Canadian biotechnology company further optimized its proprietary yeast strain to produce Tetrahydrocannabinol (THC), which it plans to launch commercially in Canada.  Also on the operational front, the Vancouver-based company completed its first commercial-scale fermentation run of cannabigerol (CBG) – a rare but highly-coveted cannabinoid.  READ: Willow Biosciences reveals new clinical data showing the effectiveness of CBG on human skin As for the balance sheet, Willow closed a bought deal offering of nearly C$29 million during the quarter and accelerated the expiry of just over nine million warrants to generate C$7.9 million in proceeds. Its cash balance of $46.5 million was well above the C$15.9 million it had after the first quarter of 2020.  "The first quarter represented another significant move forward for us, as we completed our first commercial-scale fermentation run and strengthened our balance sheet for success," Willow CEO Trevor Peters said in a statement accompanying the results. "We are entering the next phase for the company, which is creating new markets for our ultra-pure, sustainably made, cannabinoids, and our world-class team has allowed us to be at the forefront of the industry. As the industry continues to move towards increased regulation from a health and safety perspective, there is a need now more than ever for Willow's consistent and safe manufacturing process.” Willow told shareholders it is expecting its first CBG sales to start in 2Q 2021. “During the remainder of 2021, Willow plans to optimize its commercial process for CBG, supply product to customers, seed commercial samples to larger organizations, and build out a robust order book for 2022, which the company expects to be its first full year of commercial production and sales,” the company said in a statement. New board member Willow also announced it had appointed lawyer Barbara Munroe to its board. Munroe has more than 25 years of experience as a lawyer and executive in a broad range of industries, most notably in the energy sector. She is the current chair of the board of Crescent Point Energy Corp (TSE:CPG) (NYSE:CPG) (FRA:016), a major Canadian oil company. Peter Seufer-Wasserthal, Willow’s board chair, told shareholders the company was pleased to welcome Munroe to its board. "Her extensive skillset and expertise will further complement our current Board members, and we are confident she will provide valuable perspectives as we continue to execute on our strategy, drive growth and build long-term shareholder value,” Seufer-Wasserthal said. Willow produces high-purity, plant-derived ingredients for consumer care, food and beverage, and pharmaceutical products. Contact Angela at angela@proactiveinvestors.com Follow her on Twitter @AHarmantas

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