For the three months ended September 30, 2021

1.1 Date of Report: November 29, 2021

The following Management Discussion and Analysis (“MD&A”) of Global Cannabis Applications Corp. (the “Company” or “Global Cannabis” or “GCAC”) has been prepared by management, in accordance with the requirements of National Instrument 51-102, and should be read in conjunction with the unaudited condensed consolidated interim financial statements and notes thereto for the three months ended September 30, 2021.

Management is responsible for the preparation and integrity of the financial statements, including the maintenance of appropriate information systems, procedures and internal controls. Management is also responsible for ensuring that information disclosed externally, including that within the consolidated financial statements and MD&A, is complete and reliable. The information contained herein is not a substitute for detailed investigation or analysis on any particular issue. The information provided in this document is not intended to be a comprehensive review of all matters and developments concerning the Company.

All financial information in this MD&A has been prepared in accordance with IFRS and all dollar amounts are quoted in Canadian dollars, the reporting and functional currency of the Company, unless specifically noted.

Forward-Looking Statements

This MD&A contains forward-looking statements and forward-looking information (collectively, “forward- looking statements”) within the meaning of applicable Canadian and US securities legislation. These statements relate to future events or the future activities or performance of the Company. All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or which by their nature refer to future events. These forward-looking statements include, but are not limited to, statements concerning:

  • the Company’s strategies and objectives, both generally and in respect of its existing busine ss and planned business operations;
  • the Company’s plans to acquire users for its products;
  • the Company’s future cash requirements;
  • general business and economic conditions;
  • the Company’s ability to meet its financial obligations as they come due, a nd to be able to raise the necessary funds to continue operations; and
  • the timing, pricing, completion, and regulatory approvals of proposed financings if applicable.

Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Inherent in forward-looking statements are risks and uncertainties beyond the Company’s ability to predict or control, including, but not limited to, risks related to the Company’s ability to raise the necessary capital or to be fully able to implement its business strategies, and other risks identified herein under “Risk Factors”.

The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results are likely to differ, and may differ materially, from those expressed or implied by forward looking statements contained in this MD&A. Such statements are based on a number of assumptions, which may prove incorrect, including, but not limited to, assumptions about:

  • general business and economic conditions;
  • conditions in the financial markets generally, and with respect to the prospects for small capitalization commercial/technology companies specifically;
  • the Company’s ability to roll out is business plan which includes new product launches and associated planning in production, sales, distribution and marketing; and,
  • the Company’s ability to secure and retain employees and contractors to carry out its business plans.

These forward-looking statements are made as of the date hereof and the Company does not intend and does not assume any obligation, to update these forward-looking statements, except as required by applicable law. For the reasons set forth above, investors should not attribute undue certainty to or place undue reliance on

forward-looking statements.

1.2 Overall Performance

Nature of Business and Overall Performance

The Company was incorporated on July 14, 2014, under the Business Corporation Act (British Columbia) under the name of Kluster Technologies Inc. On August 1, 2014, the Company changed its name to Antisocial Holdings

Ltd. and later changed its name to Fundamental Applications Corp. (“Fundamental”) on September 2, 2014. On

April 10, 2017, the Company changed its name to Global Cannabis Applications Corp.

On September 18, 2014, the Company commenced trading on the Canadian Securities Exchange (“CSE”) under the trading symbol “FUN”. On April 18, 2017, in connection with the Company’s change of name, the Company commenced trading on the CSE under the trading symbol “APP”.

The head office of the Company is Suite 830, 1100 Melville Street, Vancouver, BC V6E 4A6. The registered and records office of the Company is Suite 1500, 1055 West Georgia Street, Vancouver, British Columbia, V6E 4N7.

Global Cannabis is a global leader in designing, developing, marketing and acquiring innovative data technologies for the medical cannabis industry. The Citizen Green platform is the world’s first end-to-end – from patient to regulator – medical cannabis data solution. It uses six core technologies: mobile applications, artificial intelligence, RegTech, smart databases, blockchain and GCAC smart rewards to qualify candidates for clinical studies. These technologies facilitate the proliferation of digital conversations by like-minded people in the medical cannabis community. Driven by digital and cannabis industry experts, GCAC is focused on viral global expansion by providing the best digital experience in the cannabis market.

Since June 2017, GCAC has developed proprietary software and acquired 3rd party solutions to complete the Citizen Green platform which is now complete and in its commercialization stage. Sales and marketing efforts have commenced in relation to expanding users of the platform and to join with strategic partners within the cannabis industry to contribute key data to the underlying databases while providing a valuable industry specific tool for their customers.

The Citizen Green platform consists of the following solutions:

Efixii (for Cannabis)

Efixii is a blockchain-secured data acquisition front-end that GCAC helped re-engineer to align with the medical cannabis industry. Global Cannabis’ 3T immutably records every step in a plants life cycle prior to being administered as a treatment. It is this level of traceability that growers, practitioners and consumers require in order to accurately measure efficacy and to ensure product consistency.

GCAC licenses Citizen Green to medical cannabis & CBD producers & retailers. Citizen Green’s Prescriptii patient care component, and its efficacy-driven algorithms, are also integrated with Efixii’s blockchain platform, thus creating what Company believes to be the world’s first complete efficacy-driven,seed-to-shop-to-seed, cannabis solution.

Prescriptii Patient-Care Solution

Prescriptii is an integrated desktop and mobile solution for medical cannabis business optimization with the following benefits:

Better Patient Outcomes

The retail application is used to register patients and collect information about their specific ailment and treatment journey. Using a proprietary Pain to Strain machine learning engine, Prescriptii can make suitable product recommendations for the patient.

Optimized Business Operations

By tracking each patient’s medical cannabis journey, Prescriptii allows retailers to provide individually tailored treatment plans. The system tracks the amount and type of product used providing for inventory management and pricing optimization for the retailer.

Medical Cannabis Data Growth

As Prescriptii captures each patient’s experience through a customer mobile application on an ongoing basis, the information is added to GCAC’s growing repository of medical cannabis data insights. The database includes medical cannabis study data, clinical trial data, and anecdotal insights captured from many different and highly regarded sources. As more and more patient information is included in the repository, it becomes smarter and is able to make improved product recommendations for each patient.

1.3 Selected Annual Information

n/a – annual requirement

1.4 Results of Operations

Three months ended September 30, 2021, compared to 2020

The Company incurred a net and comprehensive income of $393,528 for the three months ended September 30, 2021, (the “Current Period”) compared to a net and comprehensive loss of $1,028,063 for the three months ended September 30, 2020 (the “Comparative Period”).

The difference in net and comprehensive loss incurred during the Current Period, compared to that incurred during the Comparative Period was largely a result of the following:

  • The Company recorded a gain on debt settlement of $Nil during the Current Period compared to $919,248 in the Comparative Period.
  • Consulting Fees increased by $30,739 to $186,239 (Comparative Period: $155,500) as the Company has increased its use of consultants during the period for product-related services.
  • Marketing increased by $68,500 to $68,500 (Comparative Period: $Nil) due to a continued marketing push between June 2021 and September 2021.
  • Share based compensation during the Current Period was $46,518 from the grant of stock options. There were no options granted in the Comparative Period.
  • The Company recorded a gain in the fair value of the loan receivable of $68,182 during the Comparative Period. There was no comparative entry for the Current Period. See Note 7 of the accompanying financial statements for more information.

The Company has reduced its expenditures during the Comparative Period in response to the coronavirus COVID- 19 global pandemic and a resulting decrease in activity.

1.5 Summary of Quarterly Results

The following is a summary of the Company’s financial results for the eight most recently completed quarters.

Three Months Ended

Total Revenues

Net (Loss) gain

Loss Per Share (basic and diluted)

September 30, 2021




June 30, 2021




March 31, 2021




December 31, 2020




September 30, 2020




June 30, 2020




March 31, 2020




December 31, 2019




The Company continued to build the Citizen Green platform including blockchain technologies within the platform. The platform is designed for medical cannabis retailers to build loyalty with patients while growing

their underlying retail business. Up to the quarter ended December 31, 2019, the Company increased its efforts to complete the Citizen Green platform and related apps and began marketing the product prior to its commercial release. This was followed by a significant decreased in expenditures related to consulting, marketing, research and development as the platform has entered the commercialization stage. During the quarters ended December 31, 2019 and March 31, 2020, the Company continued its marketing to potential partners in the cannabis industry, and continued developing its monetization strategies while significantly decreasing its development and consulting costs. During the quarters ended June 30, 2020, September 31, 2020, and December 31, 2020, the Company continued working towards partnerships with strategic industry participants. The quarter ended March 31, 2021, saw client engagements and the commencement of revenue from clients in connection with an ongoing sales effort which continued through the quarter ended June 30, 2021. The quarter ended June 30, 2021, included a gain in fair value of loan receivable of $3,068,183 in connection with the return to treasury of shares held as security for a loan receivable (see Note 7 in the accompanying financial statements). The quarter ended September 30, 2021, saw continued marketing of the Company’s product.

1.6 Liquidity

As at September 30, 2021, the Company had a working capital deficit of $877,339 ($589,949 in cash, $38,988 in prepaid expenses, $11,457 in GST and other receivables, $450,717 in loan payable, $666,122 in accounts payable and $390,561 of accruals, $19,800 of deferred revenue) compared to a working capital deficit of $474,979 ($1,016,931 in cash, $45,100 in prepaid expenses, $29,985 in GST and other receivables, $442,965 in loan payable, $719,329 in accounts payable and $383,061 of accruals, 21,640 of deferred revenue) at June 30, 2021.

The Company has not pledged any of its assets as security for loans, or otherwise is not subject to any debt covenants. Based on current information, the Company anticipates that its working capital is insufficient to meet its expected ongoing obligations for the coming year.

The Company has financed its operations to date primarily through the issuance of common shares and the exercise of stock options or warrants. The Company continues to seek capital through various means including the issuance of equity and/or debt.

The Company’s ability to continue as a going concern is dependent on management’s ability to raise required funding through future equity issuances and through short-term borrowing. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the Board of Directors are actively involved in the review, planning and approval of significant expenditures and commitments.

1.7 Capital Resources

At September 30, 2021, the capital of the Company consists of cash in the bank, loan receivable, and GST/HST and other receivables totaling $640,394. The Company will have to generate additional cash from either debt or equity raised through the Canadian public markets to meet its commitments.

As at September 30, 2021, the Company had 15,515,000 stock options with exercise prices between $0.10 and $0.64, and 66,529,778 warrants with exercise prices between $0.05 and $0.26 which, if all exercised, would generate cash proceeds of $8,132,533. There is no assurance that these exercises will occur.

1.8 Off Balance Sheet Arrangements

There are no off-balance sheet arrangements to which the Company is committed.

1.9 Transactions with Related Parties

Related party transactions are comprised of services rendered by directors and/or officers of the Company or a company with a director in common. Related party transactions are in the ordinary course of business and are measured at the exchange amount.

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Global Cannabis Applications Corp. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 02:40:03 UTC.

Publicnow 2021

Sales 2021 0,00 
Net income 2021 0,32 M
0,25 M
0,25 M
Net cash 2021 0,57 M
0,45 M
0,45 M
P/E ratio 2021 41,4x
Yield 2021
Capitalization 8,96 M
7,00 M
7,03 M
EV / Sales 2020
EV / Sales 2021 4 361 129 464x
Nbr of Employees
Free-Float 83,9%

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