Auxly Cannabis Group Inc. (OTCMKTS:CBWTF) has announced financial results of the first quarter of 2020 that ended March 31, 2020, in which the company posted record revenue of almost $10 million.
Auxly report 1,100% growth in net revenue in Q1
The company reported a 1,100% increase in net revenue to $9.9 million compared to Q1 2019. This includes $9 million net revenue from cannabis products that mostly comprised cannabis derivatives sales from Dosecann as well as $0.9 million in research revenues from KGK. Vapes accounted for around 65% of the Auxly’s cannabis revenues. It reported strong sales in Ontario, Alberta, and British Columbia, which account for around 80% of its revenues.
The research revenues realized In the quarter are from third-part research contracts that are subject to change during the contract period. They are driven by milestone achievement on the current and new contracts. Therefore, such revenues are usually deferred to be recognized based on meeting specific milestones, and thus there is a timing difference as to when the company recognizes the revenues.
The company CEO Hugo Alves indicated that in the company’s first full of operations quarter, they generated considerable results with revenue of almost $10 million. Alves indicated that the incredible results were a result of the company’s focus and dedication to achieve its goals. He added that Auxly delivered on its promise of launching a wide range of cannabis products that offer safety, efficacy, and quality to consumers.
Other corporate updates
In the quarter, the company’s subsidiary Robinson’s Cannabis Inc., was granted a sales license by Health Canada. The license expands the product offering of the company, and now include a hand-crafted flower that is expected to be launched in the summer.
The company also secured a convertible debenture financing of $25 million, out of which already convertible debentures worth 3.3 million have been issued in two different tranches. Similarly, the company signed significant partnership agreements with OCAD University and Medical Cannabis by Shoppers Drug Mart. Also, Auxly acquired exclusive rights to Ahiflower oil globally from Natures Crops International.
WeedMD Inc (OTCMKTS:WDDMF) Signs A Pact With Fire & Flower To Manufacture CBD Cannabis Products: Will Announce Q2 2020 Revenues On September 24, 2020
WeedMD Inc (OTCMKTS:WDDMF) will submit the financial statements for Q2 2020 on September 24, 2020, within the 45 days window offered by the regulator. The auditors of WeedMD requested additional time to prepare and submit the results because of the ongoing coronavirus pandemic.
Signs a commercial arrangement with Fire & Flower
WeedMD entered a commercial pact with Fire & Flower for the manufacture of CBD cannabis products. As per the terms of the pact, WeedMD will produce, package, and transport Revity CBD products of Fire & Flower to the Saskatchewan provinces. The new products will hit the shelves of the retailer on August 14, 2020.
WeedMD will produce Revity CBD products at its most sophisticated extraction center – CX Industries, using its biomass. CEO of WeedMD, Angelo Tsebelis, said the company is excited to bag the contract order from Fire & Flower to produce Revity CBD products. It is the first commercial arrangement in Canada, and the company looks forward to working on this prestigious contract with Fire & Flower in its endeavor to introduce new products and enter strategic markets.
Angelo said the company intends to maintain a healthy longterm relationship with Fire & Flower by producing high-quality products using trichome rich biomass at its CX extraction hub. CEO of Fire & Flower, Trevor Fencott, said the company is excited to introduce its wellness-focused products to the underserved CBD markets.
Angelo further said WeedMD has an excellent track record in the production of high-quality products and leading innovation. After the initial launch in Saskatchewan, the Revity brand will be expanded nationwide.
Exclusive license accord to manufacture wellness products
WeedMD inked an exclusive license accord to manufacture Mary’s Medicinals wellness products. Under the terms of the deal with MM Technology Holdings, LLC, which holds Mary’s Medicinals product line and Mary’s brand, WeedMD will work as an exclusive partner for the production of Mary’s Medicinals products using its biomass at CX extraction center.
WeedMD will engage in the sale and distribution of Mary’s Medicinals’ products in Canada for medical use and adult use. CEO of Mary’s Brands, Jacques Panis, said the company is excited to partner with WeedMD to expand its Medicinals brands into Canada.
WeedMD posted revenues of $12 million in Q1 2020. It is driven by customer acquisition initiatives, Color Cannabis Brand recognition, and significant sales of biomass cultivated outdoors.
Planet 13 Holdings Inc (OTCMKTS:PLNHF) Reports A Drop Of 34.9% In Q2 2020 Revenues
Planet 13 Holdings Inc (OTCMKTS:PLNHF) posted a decline of 34.9% YoY to $10.8 million in Q2 2020. It also reported a drop of 51.54% in gross profits to $4.7 million in Q2 2020. The company reduced the operational expenses by 18.5% to $5.8 million.
Preserves capital and adds new customers
Co-CEO of Planet 13, Larry Scheffler, said all the Nevada businesses faced challenges in Q2 2020. Despite the challenges, the Planet 13 put in significant efforts to preserve the capital and add new clients in Q2 2020. After the states are reopened, Planet 13 gained momentum and reported better sales in July and August 2020.
Brands sales at superstores
Co-CEO of Planet 13, Bob Groesbeck, said its brands are performing well and posted a 28.5% increase in sales at superstores in Q2 2020 compared to 14% in Q2 2019. The company expects to post higher sales of brands going forward because it has expanded the cultivation to supply its popular Medizin line.
Planet 13 is also enjoying success in the wholesale space after it commenced the supply in June 2020. The customers can buy its products across 33 Nevada based dispensaries. Its top-performing SKUs include concentrates, edibles, and beverages.
Begins upward journey
Planet 13 posted monthly revenues of $7 million in July and August 2020. The company will soon inaugurate Medizin dispensary and Santa Ana next year.
Planet 13 implemented operational enhancement in Las Vegas. It is helping the company for higher conversion of visitors into potential customers. The company also made improvements at the Superstore to attract residents in Las Vegas.
Planet 13 generated revenues of $1.7 million in July 2020 from curbside pickup and delivery. It represents 17% of the overall sales.
Planet 13 also strengthened its cash balance to $22.7 million. Its total assets also increased to $81.9 million. The company acquired Santa Ana on May 21, 2020. It also mobilized CAD 11.5 million through bought deal offering on July 13, 2020.
Planet 13 took over 45,000 Sq.Ft. indoor cultivation on July 17, 2020. It also received a dispensary license in Nevada on August 10, 2020.
The vertically integrated cannabis company based in Nevada – Planet 13 engages in manufacturing, cultivation, and dispensary operations, mainly in Las Vegas.
Medical Marijuana Inc (OTCMKTS:MJNA) Sells Over 1.6 Billion Hemp Derived Cannabidiol As Consumers Prefer CBD Oil
Medical Marijuana Inc (OTCMKTS:MJNA) achieved a significant milestone of selling over $1.6 billion mg of CBD. It is on the backdrop of an increased percentage of consumers preferring CBD oil during the ongoing coronavirus. Around 15% of consumers intend to use a higher dosage of cannabidiol.
Real Scientific Hemp Oil
Dr. Stuart Titus, CEO of Medical Marijuana, said the company supplied Real Scientific Hemp Oil, an oral version of high potency cannabidiol, for 10 years. According to the global media coverage, several customers across the world demonstrated positive experiences in using its products for almost 5 years.
Satisfies high consumer demand for CBD oil
Stuart further said several other products that are sold as hemp-based products do not contain cannabidiol. They are just a CBD isolate. Medical Marijuana is committed to delivering high-quality cannabidiol oil and satisfying consumer demand.
CBD products are popular among Americans. Around 33% of people in the US have used cannabidiol products at least once in their life. Blake Schroeder, COO of Medical Marijuana, said CBD derived products and cannabidiol products are now part of everyone’s life in the US to maintain wellness.
Stuart features in Reuters
Stuart featured in Reuters, a global financial news hub, on August 11, 2020, and discussed the present landscape of M&A (mergers and acquisitions) in the cannabis space.
An article in Reuters provided an insight into how the cannabis companies fare after the coronavirus, which boosted demand for cannabis. According to Stuart, the cannabis industries celebrate financial success at these difficult times. The same trend expects to continue for some more months before M&A takes place in the industry.
On the expectation of legalization of cannabis in the US after November 2020, the presidential election, the cannabis retailers are busy finalizing the deals. A cautious approach is expected in spending the funds in the aftermath.
Stuart further stated the company engages in developing sales strategies to maintain profitability and exploring new opportunities for enhancing its product line.
Promotions of top-level executives
Medical Marijuana promoted Todd Morrow as CFIO (Chief Financial and Information Officer). It also improved morale by promoting Michelle Sides, Esq. as CLO.