Licensed producer Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) continues to lead Canada’s premium flower and pre-roll categories, boosting revenues and claiming more market share.
On Wednesday, the Vancouver, B.C.-based cannabis company released its results for the third quarter ended Sept. 30, reporting net revenue of $7.1 million, a 54-per-cent increase over $4.6 million last quarter.
The firm says its record market share of 8.3 per cent in the premium smokables category was due to a steady rise in sales of its Simply Bare Organic brand, the launch of 1964 Supply Co. in Ontario, B.C. and Alberta, as well as the launch of Homestead Cannabis Supply in the Western provinces.
But as expenses remain high, the firm reported a net loss of $3.8 million, dropping 26 per cent from a loss of $5.1 million last quarter.
Reported gross profit before fair value adjustments was $1.8 million, or a gross margin of 25 per cent.
Loss from operations fell by 27 per cent to $3.6 million, from $4.9 million in the second quarter. Total cash at the end of the period was $11.9 million, up from $4 million.
The company says September was its highest month for revenue to date, and was profitable in terms of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first time.
Adjusted EBITDA loss in the quarter improved by 81 per cent to a loss of $644,000.
“Our record net revenue this quarter is a strong validation of our strategy to create an innovative portfolio of branded products, rooted in the production of high-quality organic cannabis,” CEO Jesse McConnell said in a statement.
Rubicon made US$8.0 million from issuing a secured debenture to Green Island Investments Ltd. in July.
Company stock remained flat at $2.60 on Wednesday on the TSX Venture Exchange.
Rubicon produces premium cannabis brand Simply Bare Organic, CBD-focused Wildflower, craft concentrates brand Lab Theory, as well as flower and pressed hashish brand 1964 Supply Co.
The company says it expects to deliver international exports for the first time in the first half of 2022.
According to Rubicon, it holds 19 per cent of the Canadian pre-roll market, with a 26-per-cent share of the premium pre-roll market in B.C. alone.
During the third quarter, the company expanded its Simply Bare listings, and launched 1964 Supply Co. in Ontario for the first time in September. It also received its research and development licence from Health Canada.
The company recently signed a supply deal with Medical Cannabis by Shoppers Drug Mart.