Cannara Biotech Cannabis Co. Slightly Beats Estimates, Posts $7.2M In Q3 2021 Revenue

Author: Jelena Martinovic | July 29, 2021 02:22pm

Vertically integrated cannabis company Cannara Biotech Inc. (TSXV:LOVE) (OTCQB:LOVFF) (FRA: 8CB) reported Wednesday that it had generated $7.2 million in the third quarter of 2021, slightly beating previous estimates.

The sum, which represents a year-over-year increase of 837%, includes $5.9 million in cannabis sales, net of excise tax, reported the Montreal-based company.

Moreover, in the nine months ending May 31, the company's revenue amounted to roughly $10.8 million.

Zohar Krivorot, president and CEO at Cannara, said that results are "a testament to our strategy's efficacy and management's focus. With impressive revenue generation in our first full quarter of sales in retail market, the closing of our additional $5 million private placement, and headline acquisition of our latest one million square foot facility in Valleyfield, we are now positioned among the country's leading cannabis producers."

In June, Cannara bought The Green Organic Dutchman Holdings Ltd.'s (TSX:TGOD) (OTCQX: TGODF) facility, based in Valleyfield, Quebec for $27 million.

Here's a breakdown of what the third-quarter earnings report revealed:

Gross profit totaled $3.5 million or 49% and $4.4 million or 62% after fair value adjustments.
Operating expenses declined by 27% year-over-year to $2.2 million.
Adjusted EBITDA came in positive at $1.67 million, versus a $2.21 million loss in the same quarter of 2020.
For the nine months ending May 31, the company posted a negative adjusted EBITDA of $966,307.
Net income totaled $1.7 million or 24%.
As of May 31, the company had $57.9 million in total assets.

In April, Cannara Biotech uplisted to the TSX Venture from the Canadian Stock Exchange.