CordovaCann Corp 6-K, filed Jun 1, 2020

CordovaCann Corp. (LVRLF)

6-K 2020-06-01 For: 2020-05-29

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Added on April 06, 2026

About this 6-K

CordovaCann Corp filed this 6-K on June 1, 2020.

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Exhibit No.	Description

99.1	Financial Statements for the Three and Nine Months Ended March 31, 2020 and 2019

99.2	Management’s Discussion and Analysis

99.3	Form 52-109FV2 - Certification of Interim Filing – CEO

99.4	Form 52-109FV2 - Certification of Interim Filing – CFO


	CORDOVACANN CORP.

Date: May 29, 2020	By:	/s/ Ashish Kapoor
		Ashish Kapoor Chief Financial Officer

		Page
Notice to Reader Issued by Management		2
Condensed Interim Consolidated Statements of Financial Position		3
Unaudited Condensed Interim Consolidated Statements of Operations and Comprehensive Loss		4
Unaudited Condensed Interim Consolidated Statements of Changes in Equity (Deficiency)		5
Unaudited Condensed Interim Consolidated Statements of Cash Flows		6
Notes to the Unaudited Condensed Interim Consolidated Financial Statements		7 - 26

As at	March 31,	June 30,
	2020	2019
	(Unaudited)	(Audited)
	$	$

ASSETS
Current
Cash and cash equivalents	69,410	71,849
Accounts receivable	42,845	-
Prepaid expenses and deposits (Note 12(d))	428,447	427,894
	540,702	499,743

Investment in related party (Note 4)	500,000	500,000
Property and equipment (Note 5)	3,951,794	3,645,389
Total assets	4,992,496	4,645,132


LIABILITIES
Current
Accounts payable and accrued liabilities	2,464,965	1,371,386
Mortgage payable (Note 6)	765,660	657,633
Debenture unit deposits (Note 8)	360,082	594,889
Promissory notes payable (Note 7)	1,807,342	1,112,194
	5,398,049	3,736,102

Convertible debentures (Note 8)	1,044,611	546,460
Total liabilities	6,442,660	4,282,562

SHAREHOLDERS' EQUITY (DEFICIENCY)
Share capital (Note 9)	14,911,867	14,636,828
Contributed surplus	5,150,399	5,226,156
Equity portion of convertible debentures	120,627	62,498
Accumulated deficit	(21,559,905)	(19,570,801)
Accumulated other comprehensive income (loss)	(73,152)	7,889
Total shareholders' equity (deficiency)	(1,450,164)	362,570
Total liabilities and shareholders' equity (deficiency)	4,992,496	4,645,132

Approved on behalf of the Board:

	“Henry J. Kloepper”, Director	“Thomas M. Turner, Jr.”, Director
	(signed)	(signed)

	Three Months Ended	Three Months Ended	Nine Months Ended	Nine Months Ended
	March 31, 2020	March 31, 2019	March 31, 2020	March 31, 2019
	$	$	$	$

Expenses
Consulting fees	294,307	577,187	1,044,838	2,023,431
Professional fees	70,755	65,488	195,400	206,773
Office and general	44,558	194,169	137,044	412,914
Shareholders information service	22,759	28,401	83,222	105,686
Exclusivity fee (Note 12(a))	-	18,536	-	34,218
Stock based compensation (reversal), net (Note 11)	(446,717)	323,810	(109,573)	910,220
Depreciation (Note 5)	-	7,671	-	22,934
	(14,338)	1,215,262	1,350,931	3,716,176
Loss before other expense (income)	14,338	(1,215,262)	(1,350,931)	(3,716,176)

Interest expense (Note 6, 7, 8)	117,943	6,227	302,166	6,227
Accretion expense (Note 7, 8)	27,670	7,619	81,320	7,619
Loss on settlement of fees (Note 8)	-	12,700	-	12,700
Foreign exchange loss (gain)	(71,246)	31,513	(55,578)	(30,621)
Loss on deposit (Note 12(e))	-	-	396,000	-
Other income	(37,119)	-	(85,735)	-
Net loss	(22,910)	(1,273,321)	(1,989,104)	(3,712,101)

Loss per share - basic and diluted	(0.00)	(0.03)	(0.05)	(0.09)

Weighted average number of outstanding common shares - basic and diluted	41,012,198	40,036,228	40,860,182	40,036,228

Net loss	(22,910)	(1,273,321)	(1,989,104)	(3,712,101)
Foreign exchange translation adjustment	(91,222)	59	(81,041)	(2,819)
Total comprehensive loss	(114,132)	(1,273,262)	(2,070,145)	(3,714,920)

				Equity Portion of		Accumulated Other	Shareholders'
	Number of Common	Share	Contributed	Convertible	Accumulated	Comprehensive	Equity
	Shares	Capital	Surplus	Debentures	Deficit	Income	(Deficiency)
	#	$	$	$	$	$	$

Balance, June 30, 2018	40,036,228	14,480,241	3,808,611	-	(13,734,265)	684	4,555,271
Issuance of warrants	-	-	876,874	-	-	-	876,874
Equity portion of convertible debentures (Note 8)	-	-	29,063	62,498	-	-	91,561
Warrant portion of promissory note payable (Note 7)	-	-	4,283	-	-	-	4,283
Foreign currency translation gain (loss)	-	-	-	-	-	(2,819)	(2,819)
Net loss for the period	-	-	-	-	(3,712,101)	-	(3,712,101)
Balance, March 31, 2019	40,036,228	14,480,241	4,718,831	62,498	(17,446,366)	(2,135)	1,813,069

Balance, June 30, 2019	40,786,228	14,636,828	5,226,156	62,498	(19,570,801)	7,889	362,570

Issuance of warrants (Note 11)	-	-	525,388	-	-	-	525,388
Issuance of options (Note 10)	-	-	103,838	-	-	-	103,838
Forfeiture of warrants (Note 11 (c))	-	-	(738,799)	-	-	-	(738,799)
Equity portion of convertible debentures (Note 8)	-	-	33,816	74,989	-	-	108,805
Conversion of convertible debenture (Note 8)	271,164	275,039		(25,855)	-	-	249,184
Warrant portion of promissory note payable (Note 7)			-	8,995	-	-	8,995
Foreign currency translation gain (loss)	-	-	-	-	-	(81,041)	(81,041)
Net loss for the period	-	-	-	-	(1,989,104)	-	(1,989,104)
Balance, March 31, 2020	41,057,392	14,911,867	5,150,399	120,627	(21,559,905)	(73,152)	(1,450,164)

			Currency

CordovaCann Corp.			Canadian dollars
CordovaCann Holdings Canada, Inc.			Canadian dollars
Cordova Investments Canada, Inc.			Canadian dollars
CordovaCann Holdings, Inc.			United States dollars
Cordova CO Holdings, LLC			United States dollars
Cordova OR Holdings, LLC			United States dollars
CDVA Enterprises, LLC			United States dollars
Cordova CA Holdings, LLC			United States dollars
Cordova OR Operations, LLC			United States dollars
Cannabilt Farms, LLC			United States dollars
Cannabilt OR Retail, LLC			United States dollars
Cannabilt Holdings, Inc.			United States dollars
Future Processing, LLC			United States dollars

	Equipment	Land	Building	Construction	Total
				in progress
	$	$	$	$	$
Cost
As at June 30, 2018	151,188	-	-	-	151,188
Additions	-	523,480	1,361,048	1,760,861	3,645,389
Translation adjustment	-	-	-	-	-
Impairment charge	(151,188)	-	-	-	(151,188)
As at June 30, 2019	-	523,480	1,361,048	1,760,861	3,645,389
Additions	-	-	-	-	-
Translation adjustment	-	44,000	114,400	148,005	306,405
Impairment charge	-	-	-	-	-
As at March 31, 2020	-	567,480	1,475,448	1,908,866	3,951,794

Accumulated depreciation
As at June 30, 2018	12,770	-	-	-	12,770
Depreciation	30,529	-	-	-	30,529
Impairment charge	(43,299)	-	-	-	(43,299)
As at June 30, 2019	-	-	-	-	-
Additions	-	-	-	-	-
Impairment charge	-	-	-	-	-
As at March 31, 2020	-	-	-	-	-

Net book value ($)
As at June 30, 2018	138,418	-	-	-	138,418
As at June 30, 2019	-	523,480	1,361,048	1,760,861	3,645,389
As at March 31, 2020	-	567,480	1,475,448	1,908,866	3,951,794

	Options Outstanding	Weighted Average Exercise Price	Weighted Average Life Remaining (yrs)
Executive Officers	900,000	$0.60	1.55
Directors	100,000	$0.33	1.85
Consultants	1,550,000	$0.57	1.45
	2,550,000

Grant Date	Expiry Date	Options Outstanding	Options Exercisable	Exercise Price	Fair Value
Jan. 16, 2018(i)	Jan. 15, 2021	1,000,000	1,000,000	$0.40	$377,024
Mar. 9, 2018(ii)	Mar. 8, 2021	750,000	750,000	$1.15	$800,703
Apr. 25, 2019(iii)	Apr. 24, 2023	800,000	800,000	$0.25	$103,838

Stock price	$0.40
Risk-free interest rate	1.78%
Expected life	3 years
Estimated volatility in the market price of the common shares	218%
Dividend yield	Nil

	Warrants Outstanding	Weighted Average Exercise Price	Weighted Average Life Remaining (years)
June 30, 2018	6,650,000	$0.54	1.37
Issued	3,725,000	1.69	1.65
Exercised	(750,000)	0.15	0.00
Forfeited	(1,000,000)	2.00	0.00
Expired	(250,000)	0.10	0.00
June 30, 2019	8,375,000	0.93	1.05
Issued	3,556,500	0.35	2.65
Forfeited	(750,000)	2.00	0.00
Expired	(5,800,000)	0.62	0.00
March 31, 2020	5,381,500	$0.72	2.16

Stock price	$1.35
Risk-free interest rate	2.27%
Expected life	2 years
Estimated volatility in the market price of the common shares	126%
Dividend yield	Nil

Stock price	$1.05
Risk-free interest rate	2.25%
Expected life	2 years
Estimated volatility in the market price of the common shares	124%
Dividend yield	Nil

Overview	3
Summary of Results	3
Number of Common Shares	7

Business Environment	7
Compliance with Applicable State Law	7
Risk Factors	7
Forward Looking Statements	22
Business Plan and Strategy	22

Results of Operations	23

Liquidity and Capital Resources	26
Working Capital	26
Key Contractual Obligations	32
Off Balance Sheet Arrangements	32

Transactions with Related Parties	32

Financial and Derivative Instruments	33

Critical Accounting Policies	33

Evaluation of Disclosure Controls and Procedures	34

Outlook	35
Current Outlook	35
Subsequent Events	35

Public Securities Filings	36

Stock price	$1.30
Risk-free interest rate	2.41%
Expected life	4 years
Estimated volatility in the market price of the common shares	215%
Dividend yield	Nil

Stock price	$1.06
Risk-free interest rate	2.14%
Expected life	2 years
Estimated volatility in the market price of the common shares	116%
Dividend yield	Nil

Stock price	$0.95
Risk-free interest rate	1.83%
Expected life	3 years
Estimated volatility in the market price of the common shares	152%
Dividend yield	Nil

Stock price	$0.19
Risk-free interest rate	1.37%
Expected life	3 years
Estimated volatility in the market price of the common shares	124%
Dividend yield	Nil

	Mar 31,	Dec 31,	Sep 30,	Jun 30,	Mar 31,	Dec 31,	Sep 30,	Jun 30,
Quarter Ended	2020	2019	2019	2019	2019	2018	2018	2018
	$	$	$	$	$	$	$	$
Revenue1	-	-	-	-	-	-	-	(8,819)

Gain (Loss) from continuing operations	(22,910)	(1,065,869)	(900,325)	(2,124,435)	(1,273,321)	(1,477,901)	(960,879)	(2,141,559)

Net loss per share – basic and diluted	0.021	0.026	0.022	0.053	0.032	0.037	0.024	0.065