Positive Financial Results For 2021 With $17.1 Million in Revenues
Pervasip today announced the filing of its unaudited financial statements for its fiscal years ended November 30, 2021, and November 30, 2020.
“Completion of the Artizen acquisition was an important step for our growth and profitability. We are well positioned to expand in Washington, as we continue to focus on increasing sales, improving margins, completing our ongoing facility construction, and exploring additional opportunities." German Burtscher, President & CEO
SEATTLE, WASHINGTON, MARCH 1, 2022
Pervasip Corp. (OTCPK: PVSP) (“Pervasip” or the “Company”), a developer of companies and technologies in high value emerging markets, today announced the filing of its unaudited financial statements for its fiscal years ended November 30, 2021, and November 30, 2020.
The Company acquired Artizen Corporation and its operating subsidiary, Zen Asset Management LLC (“ZAM”), effective September 1, 2021.
ZAM manages four licensed cultivation facilities and one licensed processing facility in Washington state under a series of management, leasing, licensing and other long-term agreements.
Artizen-branded flower products ranked amongst the top ten selling brands nationally in September 2021, according to MJBiz Magazine and data produced by Headset, Inc. Artizen-branded products are the all-time fourth best-selling in Washington across all product categories, and the all-time third in flower, with five of the all-time top ten selling products in flower. All Artizen flower is produced by independent, licensed cultivators in Washington state.
The Artizen brand’s commitment to quality and consistency has built a substantial following, fueling more than $86 million in wholesale sales to a distribution network with more than 200 retailers, corresponding to about $250 million in retail value since inception in 2015.
Artizen and ZAM improved on those results with about $17.1 million in revenue and about $530,000 in net income attributable to Pervasip’s shareholders for the year ended November 30, 2021.
The Company completed a non-dilutive financing of $2.5 million to build out a state-of-the-art cultivation facility in Tacoma, Washington, and to restructure related operations to reduce variable costs and operating expenses by about $1.0 million per year, commencing in the latter half of 2022.
Wholesale sales increased by 330% for the year ended November 30, 2021, as compared to the year ended November 30, 2020, putting the Company on track to increase total sales to more than $30 million per year after construction of the Tacoma cultivation facility is completed.
“Completion of the Artizen acquisition was an important step for our growth and profitability,” said German Burtscher, Pervasip’s president and chief executive officer. “We are well positioned to expand in Washington, as we continue to focus on increasing sales, improving margins, completing our ongoing facility construction, and exploring additional opportunities for non-dilutive growth capital. We have also begun to evaluate licensing, acquisitions, and other strategic transactions to position the Artizen brand for sales in new geographies during the latter half of 2022, with a focus on Oregon, California, Michigan, Massachusetts and Nevada. We are pleased with our progress in 2021 and very excited with the path ahead.” Burtscher continued: “In addition, our investment in KRTL Biotech is providing us exciting opportunities in the medical space for psylocibin and other similar compounds under research and development by our partners in South Korea. We will approach these opportunities at the appropriate time, with the same approach we used to develop Artizen, with a meticulous review of the market and players, strong strategic partnerships, and a measured entry to the market. While these are longer term opportunities, the sheer size of the market and the associated benefits raise exciting additional prospects for further expansion.”
Pervasip Corporation (PVSP) is a developer of companies and technologies in high value emerging markets and owns 100% of Artizen Corporation (“Artizen Corp”). Artizen Corp’s wholly owned subsidiary, Zen Asset Management LLC (“ZAM”), is a diversified asset management company founded to acquire, develop, and support companies and technologies in the cannabis industry. ZAM’s existing clients operate four licensed cannabis cultivation and one processing facility in Washington. Most of the biomass produced by these independent cultivators has been sold historically under the Artizen™ brand, including all-time top selling products in flower in Washington state. For more information about Artizen branded products, visit: www.artizencannabis.com
This news release contains statements and information that, to the extent that they are not historical fact, may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may include financial and other projections, as well as statements regarding future plans, objectives, or economic performance, or the assumption underlying any of the foregoing. In some cases, forward-looking statements can be identified by terms such as may, would, could, will, likely, except, anticipate, believe, intend, plan, forecast, project, estimate, outlook, or the negative thereof or other similar expressions concerning matters that are not historical facts. Examples of such statements include, but are not limited to, statements with respect to the objectives and business plans of the Company; ability to realize benefits from its recent corporate appointments; ability to retain its key personnel; the intention to grow the Company’s business and operations; the competitive conditions of the industries in which the Company operates; and laws and any amendments thereto applicable to the Company. Forward-looking information is based on the assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The material factors and assumptions used to develop the forward-looking information contained in this news release include, but are not limited to, key personnel and qualified employees continuing their involvement with the Company; and the Company’s ability to secure financing on reasonable terms. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, including, without limitation, risks relating to the future business plans of the Company; risks that the Company will not be able to retain its key personnel; risks that the Company will not be able to secure financing on reasonable terms or at all, as well as all of the other risks as described in the Company’s periodic disclosure statements. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking information speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company’s management to predict all of such factors and to assess in advance the impact of each such factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The Company does not undertake any obligation to update any forward-looking information to reflect information or events after the date on which it is made or to reflect the occurrence of unanticipated events, except as required by law, including securities laws.
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