Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) sold 60 per cent more kilograms of pot than last quarter thanks to its new Valleyfield facility.
On Wednesday, the cannabis producer released its financial results for its third quarter ended May 31 and reported a quarterly revenue increase of 36 per cent from last quarter to $10.1 million. Cash totalled $3.9 million this quarter.
It also reported a net income of $1.4 million and recorded its first revenue from its Valleyfield facility. The company also introduced two new cultivars under the Tribal brand Nugz and one new under the Nugz brand in Quebec.
The company sold approximately 2,000 kilograms of cannabis across three brands during the quarter thanks to the up in production from its Valleyfield facility. During the quarter, the company invested $4.9 million in capital expenditures.
Company stock stayed flat on Wednesday at $0.10 on the Canadian Ventures Exchange.
Cannara Biotech Inc. Fiscal Third Quarter 2022 Financial Results. Graph via Cannara Biotech Inc.
Read more: Cannara Biotech sales recover slightly to $6.6M in Q1
Read more: Cannara Biotech ups annual sales 565% to $17.3M
“I am very proud of the entire team at Cannara for their continued focus and hard work. The positive financial performance is a direct result of the collective efforts of all our great employees,” Cannara CEO Zohar Krivorot said.
“We continue to be ahead of schedule on all of our stated objectives for this year while at the same time delivering record revenue, our fifth positive quarter of Adjusted EBITDA, and positive net income,” he added.
“We are also pleased to report to shareholders that our new state-of-the-art Valleyfield Facility, as of today, is producing out of six of its twenty-four growing zones, each containing 9,600 plants each.”
CFO Nicholas Sosiak said that being able to deliver its fifth consecutive quarter of Adjusted EBITDA and its third quarter in positive net income are milestones that the company is proud of.
“Cannara continues to surpass its financial targets which allows us to lay the foundation for our long-term goals, as evidenced by the $50 million credit facility Cannara secured with BMO Commercial Banking. The credit facility provides the Company with the necessary liquidity to continue to execute our expansion plans,” Sosiak said.
“These additional resources will assist Cannara to increase its cannabis supply through capital investment at the Valleyfield Facility with a continued focus on providing consumers with premium products at sustainable, market-disrupting high-value propositions. This strategy has allowed us to increase market share while simultaneously entering into new provinces.”
Cannara owns two mega facilities based in Québec spanning over 1,650,000 square feet which can produce up to 125,000 kilograms of weed each year.
