Cannara Biotech Shares Surge On 983% QoQ Revenue Growth, Positive Adjusted EBITDA

Vertically integrated cannabis company Cannara Biotech Inc. LOVE LOVFF 8CB released its fourth quarter and fiscal year 2021 financial and operating results on Wednesday with quarterly revenue of CA$6.5 million ($5.12 million), up by 983.33% from CA$600,000 in the same period a year ago.

Q4 Financial And Operating’s Summary

• Gross profit was of CA$4.5 million or 70%, representing an increase of CA$4.9 million from the year prior;
• Adjusted EBITDA amounted to CA$1.4 million, an increase of CA$2.8 million from a negative adjusted EBITDA of CA$1.4 million in the fourth quarter of 2020;
• Net income amounted to CA$1.1 million, an increase of CA$5.0 million from a net loss of CA$3.9 million in the fourth quarter of 2020;
• Completed a non-brokered private placement of CA$24.3 million and convertible debenture raise of CA$5.7 million to finance the acquisition of the Valleyfield Facility. In addition, the Company converted its CA$5 million credit facilities bearing interest at 13% into a CA$5 million convertible debenture bearing interest at 4% and convertible into common shares at a price of CA$0.18 per share.

Full Year 2021 Financial Highlights

• Delivered a total revenue of CA$17.3 million, an increase of CA$14.7 million from the year prior;
• Gross profit of CA$10.5 million or 61%, representing an increase of CA$9.3 million from the year prior;
• Adjusted EBITDA amounted to CA$1.5 million, an increase of CA$9.8 million from the year prior;
• Net loss amounted to CA$1.5 million, a significant decrease of $11.6 million from a net loss of $13.1 million in the prior year;
• Cash on hand of CA$8.2 million, an increase of CA$0.4 million from the year prior.

Executive Team Appointments

• Nicolas Dupuis joins the company with 25 years of progressive operations leadership experience in global manufacturing in the pharmaceutical industry, assumed office as vice president, supply chain to spearhead the supply strategy and further streamline business operations;
• Brian Sherman joins the company as VP of legal affairs to lead strategic advice in regulatory compliance matters. Sherman brings industry experience having served as a senior member of the legal team at Canopy Growth CGC.

"Our impressive increase in revenue this quarter and incredible overall results for this year demonstrate a year of sustained growth and profitability, one which continued to drive our net income and adjusted EBITDA up," Zohar Krivorot, president & CEO of Cannara said. "Our three flagship brands carved unique niches in the industry, offering handcrafted, hang-dried, slow-cured and hand-trimmed cannabis with the flower's natural properties intact. The consumer response to these products outperformed even our expectations, as we saw a remarkable increase in both new and loyal customers embracing the dynamism of our product portfolio. “

Price Action

Cannara’s shares closed Wednesday market session 20.32% higher at 11 cents per share.

Photo: Courtesy of Avery Meeker on Unsplash