fbpx

QQQ
+ 0.35
372.63
+ 0.09%
BTC/USD
+ 442.64
43253.21
+ 1.03%
DIA
+ 0.36
347.20
+ 0.1%
SPY
+ 0.78
442.40
+ 0.18%
TLT
-1.45
149.81
-0.98%
GLD
-0.19
163.70
-0.12%

WeedMD Revenue Spikes 327% As Retail Engagement 'Ramps Up'

July 15, 2020 9:52 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
WeedMD Revenue Spikes 327% As Retail Engagement 'Ramps Up'

Cannabis company WeedMD Inc. (TSXV:WMD) (OTCQX:WDDMF) disclosed that its revenue rose by 327% to $12.2 million.

That's a year-over-year increase of 265%.

The significant revenue growth over the first quarter of fiscal 2020 can be attributed to adult-use and medical channels as well as outdoor biomass sale, the company said Wednesday.

WeedMD CEO Angelo Tsebelis pointed out that substantial sales growth is driven by "increased brand recognition, higher product availability and customer acquisition initiatives."

The company also "ramped-up retail engagement" of its Color brand in the adult-use market, Tsebelis continued.

Quarterly highlights from the earnings report include:

  • Gross profit (before changes in fair value) of $1.37 million compared to the gross profit of $2 million in the previous quarter
  • Gross margin (before changes in fair value) of 11% versus a negative gross margin of 70% in the fourth quarter of fiscal 2019
  • Net and comprehensive loss of $9 million, what's a sequential increase of 25% 
  • Negative adjusted EBITDA of $5.1 million versus a loss of approximately $8.2 million in the previous period
  • Cash and cash equivalents amounted to $14.1 million, compared to around $8.2 million in the prior quarter
  • Cultivation cost of $0.84 per gram, up by 13% compared to the fourth quarter of last year
  • 5,084 kilograms of dried cannabis sold
  • That's an increase of 744% compared to the prior period

WeedMD CFO Lincoln Greenidge explained that the first quarter results "show the benefits of our combination with Starseed," which the company acquired in December. Simultaneously, the company obtained a $25 million equity investment from the LiUNA Pension Fund of Central and Eastern Canada.

WeedMD's Recent Moves

Meanwhile, last month, the Toronto-based company inked a deal with The Blinc Group, a manufacturer of bespoke vaporizers, via Starseed to utilize Blinc Group's proprietary vaping technology in its new 'Aurum Vapes.'

Courtesy photo

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.


Related Articles

WeedMD Added To HMMJ ETF After Quarterly Rebalancing

WeedMD Added To HMMJ ETF After Quarterly Rebalancing

Medical cannabis company WeedMD Inc. (TSX-V:WMD)(OTCQX: WDDMF)(FSE:4WE) confirmed Tuesday it has been added to the Horizons Marijuana Life Sciences Index E read more
WeedMD Raises $17.25M Via Bought Deal Offering

WeedMD Raises $17.25M Via Bought Deal Offering

Cannabis producer WeedMD Inc. (TSX:WMD) (OTCQX: WDDMF) has secured $17.25 million in financing through a bought deal short-form prospectus offering of its units. read more
Cannabis Movers & Shakers: WeedMD, Flower One, Wikileaf, Australis Capital, Green Thumb, Harborside, PSYC, Indus Holdings, Common Citizen, ECHO Connection

Cannabis Movers & Shakers: WeedMD, Flower One, Wikileaf, Australis Capital, Green Thumb, Harborside, PSYC, Indus Holdings, Common Citizen, ECHO Connection

The year has kicked off to a strong start. Here’s a summary of the latest company shakeups within the cannabis industry. read more
Cannabis Movers & Shakers: WeeMD, Harvest Health, Bespoke Extracts

Cannabis Movers & Shakers: WeeMD, Harvest Health, Bespoke Extracts

Here is a summary of the latest company shakeups within the cannabis industry. WeedMD Announces The Departure Of CCO Stephen Ng read more