Humble & Fume Inc. (CSE: HMBL) (OTCQX: HUMBF) saw profits during its last quarter attributed to a recent acquisition of a California cannabis distribution company.
On Thursday, the company released its financial results for the fiscal 2022 fourth quarter and year ended June 30 and reported a revenue of $15.1 million. Last year, the company acquired the California pot distribution business Green Acre Distribution which delivers products to 95 per cent of the state’s pot shops within 24 hours.
The investment in the distribution business has resulted in generating $2.9 million in revenue in the first two months of operations.
The company reported a loss of $8.6 million in operating expenses, which was a decrease from $2.5 million last year. It also reported net losses after taxes to be negative $7.7 million and adjusted earnings before interests, taxes and depreciation to be negative $4.5 million.
Operating expenses increased due to a one-time asset impairment expense of $3.2 million related to the closure of its facility. The organization also spent $2.8 million on the launch of the California cannabis distribution firm.
During the quarter, the company announced it formed HC Solutions Holdings Inc., a joint venture with Green Acre Capital Distribution Corp., for the purpose of distribution of cannabis throughout the United States.
Humble also announced an exclusive distribution service agreement with the California brand house Canndescent Brands for the sale and distribution of all its product lines
Company stock stayed flat on Friday at $0.12 on the OTC market exchange.
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“As our business fundamentals are improving, we can prioritize the market expansion of the Cannabis business that will generate positive gross margins,” CEO Joel Toguri said.
“As we continue our efforts to right-size our business, delivering a seamless end-to-end-user experience for our brand and retail partners is always top of mind. To ensure faster turnaround times and accuracy in our fulfillment process, we completed the closure of the Nevada warehouse location ahead of schedule and under budget,” Toguri said.
“As we look ahead, we are focused on accelerating our Cannabis expansion efforts in the U.S., building stronger relationships with our brand and retail partners throughout North America, and seeking out the most sought-after cannabis brands.”
“We are committed to becoming the industry-leading distributor of cannabis and accessories, generating a sustainable profit and positive cash flow to deliver long-term shareholder value.”
