Canadian cannabis retailer Kiaro Holdings Corp. (TSXV: KO) has added to its topline revenue, following acquisitions this year to give it a number of new stores across the booming Ontario market.
On Friday, the company released its earnings results for the three months ended Oct. 31, with sales climbing 23 per cent to $7.5 million from $6.1 million in the previous quarter.
But operating expenses jumped 32 per cent to $3.3 million from $2.5 million. And net loss expanded 38 per cent to $1.1 million from $800,000.
Recent acquisitions of Cozy Cannabis for $1.3 million and Hemisphere for $7.3 million “have solidified [Kiaro’s] presence in Ontario, including prominent Toronto and Ottawa centers,” the company says in a statement.
Read more: Kiaro’s revenues rise 20% to $6.2M
The company’s store footprint has increased to 14, from eight in July.
Additional licensed locations set to open in the fourth quarter would bring its total operational stores to 17 across British Columbia, Saskatchewan, and Ontario.
As for its wholesale operations in Saskatchewan, Kiaro says its National Cannabis Distribution Inc. services over 75 per cent of the province’s licensed pot shops, an improvement of 25 per cent over last year.
The company notes that Saskatchewan’s cannabis retail market has doubled since the province’s regulator removed the cap on stores in September 2020.
Kiaro ended the quarter with an improved cash position of $3.7 million, for total working capital of $4.6 million, after issuing nearly $3.8 million in convertible debentures in a private placement that closed in October.
“Our team has delivered significant value to shareholders with the acquisition and skillful integration of Hemisphere into the Kiaro family,” CEO Daniel Petrov said in the statement.
“In addition, our investors have supported a successful raise of $3.7M to support the company’s efforts to actualize the value from our 2021 acquisitions. On top of this success, teams across wholesale, retail and ecommerce delivered outstanding financial results.”
Kiaro says it plans to expand its last-mile delivery in B.C. and Ontario, while improving its ecommerce revenues through its Kiaro.com and Vaped online platforms.
Company stock traded flat on Friday at around $0.08 on the TSX Venture Exchange.