Cannabis beverage maker HYTN Innovations Inc. (CSE: HYTN) says it’s seen a swift path to revenue after completion of its manufacturing facility in Kelowna, and rapid licence approvals from Health Canada.
On Wednesday, the Vancouver-based company said that its operations subsidiary HYTN Beverage Corp. reported its first-quarter financial results for the three months ended Dec. 31.
In the quarter, the company reported its first sales of $212,000.
HYTN’s net and comprehensive loss totalled $482,000, up over 300 per cent from $100,000 last quarter. Cash on hand at the end of the period totalled $139,000.
In February, HYTN Beverage completed a share exchange agreement with Mount Dakota Energy Corp., where the latter company acquired all the outstanding securities of HYTN in exchange for 15.5 million common shares and 2.5 million warrants to security holders. Mount Dakota Energy is now known as HYTN Innovations.
The acquisition means a change of business and a reverse takeover of HYTN Innovations. Company shares were delisted from the TSX-V, and began trading on the Canadian Securities Exchange on Feb. 22.
Also in February, HYTN Innovations entered into an agreement to acquire HYTN Cannabis Inc., a private firm headquartered in Kelowna. The deal involved a nominal price, and consolidated legal ownership of HYTN Cannabis’s standard processing licence.
HYTN Innovations CEO Elliot McKerr says that after the reverse takeover and business combinations, the company is optimistic about the its simplified balance sheet, focused strategic vision and revenue trajectory.
As of Dec. 31, HYTN Innovations had loaned $244,000 to HYTN Cannabis, which was consolidated from the date of acquisition.
The firm recently sent its first shipment of cannabinoid-based drinks to Australia, for sale on the medical cannabis market there.
Company stock traded flat at $0.32 Wednesday on the Canadian Securities Exchange.
Read more: HYTN starts selling cannabis drinks to Australian patients
Read more: Emerald Health partners with HYTN to launch THC drinks in Canada
Correction: A previous version of this story had an incorrect headline reading that the company made $482K in revenue.
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