- Next Green Wave (NGW) has released financial results for Q2 2021
- Total revenue decreased due to non-recurring hardware updates and shifting preferences in the cannabis derivatives market
- The company has also been awarded its building permit by the City of Coalinga for a 62,000 square foot indoor cultivation facility
- The company’s quarterly shareholder call is scheduled for September 2, 2021 at 3:30 pm PT
- Next Green Wave Holdings is an integrated seed-to-shelf craft cannabis producer
- Next Green Wave (NGW) is down by 27.78 per cent and is currently trading at $0.52 per share
Next Green Wave (NGW) has released financial results for Q2 2021.
The company has introduced a new type of revenue called distro revenue, which involves the buying and selling of third-party flower.
Q2 revenues decreased due to the following non-recurring items:
- Significant shifts in the market for derivatives at both the retail and wholesale level. The company adjusted its branded product mix, deemphasizing edibles, pre-rolls and dabbables, which resulted in lower overall sales for the quarter
- A hardware update for branded sauce carts, resulting in lower overall sales for the quarter. With R&D successfully completed, the company anticipates relaunching its sauce cart 2.0 in September with growing sales month-over-month until meeting internal production capacity in early 2022
The company has been awarded its building permit by the City of Coalinga. The construction timeline for the 62,000 square foot indoor cultivation facility (Facility B) is as follows:
- Civil work completed in August 2021
- Building permit obtained in August 2021
- Certificate of occupancy to be obtained in Q4 2022
Facility B is facing a three to six-month delay due to disruptions in the supply chain, mainly regarding steel.
The company’s quarterly shareholder call is scheduled for September 2, 2021 at 3:30 pm PT.
The company’s 2021 annual general meeting will take place on November 5, 2021 at 2:30 pm PT.
Michael Jennings, Next Green Wave’s Director and CEO, commented,
“Due to the necessary adjustments made to our branded product menu, we have seen a strong rebound to both the top and bottom line in Q2 2021. By increasing per-plant yields, reducing turnaround time between cycles, improving operational efficiencies and continually adding better performing genetics through our pheno hunts, we have made up significant ground replacing any lost derivative revenue in less than one fiscal quarter.
As such, we are very excited about the testing results coming out of our facility right now, and when combined with the increasing quarter-over-quarter yield, I am very excited about the revenue and brand growth potential this brings to Next Green Wave in the short and long term. We currently have six unique strains testing consistently above 30 per cent THC and we anticipate our entire menu consisting of strains above 30 per cent THC in early 2022.
Additionally, we are actively pursuing the acquisition of retail locations in key markets throughout the state to fulfill NGW’s mission of becoming a top 5 integrated premium producer, brand and retailer in the California market.”
Next Green Wave Holdings is an integrated seed-to-shelf craft cannabis producer.
Next Green Wave (NGW) is down by 27.78 per cent and is currently trading at $0.52 per share as of 11:29 am ET.