Pot sales for Quebec-based producer Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) bounced back in the first quarter of fiscal 2022, after a lull in Q4.
On Thursday, the company published its earnings results for the three months ended Nov. 30, 2021, with gross revenue of $6.6 million, up 5 per cent from $6.3 million in the previous quarter.
But revenue was still down from a strong third quarter with $7.2 million in sales.
Net loss was negative $531,000, down 53 per cent from a $1.1-million profit the previous quarter. The major difference between the two quarters was the change in fair-value adjustments.
Cannara posted its third-straight quarter of positive adjusted earnings before, interest, tax, depreciation and amortization (EBITDA) with $1.2 million.
In a statement, Cannara boasted its ability to maintain positive EBITDA while ramping up production at its Valleyfield Facility, which it acquired from The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (US-OTC: TGODF) in a $27-million transaction last fall.
Also in the quarter, the company increased its bank debt facility to $22 million from $5.4 million, ending the quarter with $14 million in cash and $18.7 million in working capital.
At the end of the fourth quarter, the company granted a total of 7.9 million stock options to board members and certain employees at $0.18 pr common share.
CEO Zohar Krivorot says that Cannara is at a pivotal point in its brief but successful history, as his team focuses on delivering premium products at “disruptive” pricing while significantly increasing production.
“We have made significant improvements to the [Valleyfield] facility and the results have been extremely positive through our initial grow,” he says in the statement. “We also continue to see increased demand for our products and, as we move forward in 2022, our mission is to increase our production capacity to help meet that unmet and growing demand while further driving shareholder value.”
Cannara makes the brands Tribal, Nugz and Orchid CBD, and recently expanded its sales footprint into Ontario.