Source: Cannara Biotech Inc.
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  • Total revenue of $7.2 million, including $5.9 million in cannabis sales
  • Gross profit of $3.5 million or 49 per cent
  • Operating expenses are down by 27 per cent
  • Sold approximately 1,400 kg of cannabis for a total value of $1,265,000
  • Cannara Biotech Inc. (LOVE) is a producer of cannabis and cannabis products for the Quebec and Canadian markets
  • Cannara Biotech Inc. opened trading at C$0.175 per share

Cannara Biotech (LOVE) has announced its third-quarter financial and operating results for the three and nine-month periods ended May 31, 2021.

All financial results are reported in Canadian dollars unless otherwise noted.

Third-quarter 2021 highlights

  • Total revenue of $7.2 million, including $5.9 million in cannabis sales, net of excise tax
  • Gross profit of $3.5 million or 49 per cent and $4.4 million or 62 per cent after fair value adjustments
  • Operating expenses are down by 27 per cent to $2.2 million in Q3 2021 from $3.0 million in Q3 2020.
  • Adjusted EBITDA of $1.7 million or 23 per cent.
  • Net income of $1.7 million or 24 per cent
  • Sold approximately 1,400 kg of cannabis it had in inventory from previous harvests for a total value of $1,265,000
  • Uplisted to the TSX Venture (TSXV) from the Canadian Securities Exchange (CSE) on April 8, 2021

“This quarter’s results are a testament to our strategy’s efficacy and management’s focus,” said Zohar Krivorot, President & Chief Executive Officer of Cannara.

“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.”

“Our positive net income and strong gross margins confirm our operational excellence, uniquely lean company structure, and continued growth,” said Nicholas Sosiak, Chief Financial Officer of Cannara. “Cannara’s core competence is our differentiated model that underscores our ability to excel at maximizing the use of our resources. We are executing against this proven model, as we continue to scale our business in the next chapter of our growth roadmap.”

Highlights subsequent to quarter-end

  • Acquired a one million sq. ft. state-of-the-art cultivation facility from The Green Organic Dutchman Ltd. (“TGOD”) for $27 million, providing Cannara with the ability to reach an annual cultivation capacity of 125,000 kg of premium-grade cannabis
  • Closed private placements of $24.3 million priced at a premium to the market price at the time of the transaction and $5.7 million in convertible debentures bearing interest at 4 per cent to fund the acquisition of the Valleyfield facility and related working capital expenditures
  • Converted the Company’s existing $5 million credit facilities bearing interest at 13 per cent into a convertible debenture bearing 4 per cent interest and subject to a statutory hold period of four months and one day from the date of issuance
  • Granted an aggregate total of 425,000 stock options to certain employees at an exercise price of $0.18 per common share, subject to certain vesting conditions
  • Launched an additional six SKUs under the Tribal and Orchid CBD brands in June 2021
  • Released three new cannabis genetics, Cuban Linx, Do-Si-Dos, CBD Runtz, in dried flower and pre-roll formats

Cannara Biotech Inc. (LOVE) is a producer of premium–grade cannabis and cannabis–derivative products for the Quebec and Canadian markets.

Cannara Biotech Inc. opened trading at C$0.175 per share.

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