That's a year-over-year increase of 265%.
The significant revenue growth over the first quarter of fiscal 2020 can be attributed to adult-use and medical channels as well as outdoor biomass sale, the company said Wednesday.
WeedMD CEO Angelo Tsebelis pointed out that substantial sales growth is driven by "increased brand recognition, higher product availability and customer acquisition initiatives."
The company also "ramped-up retail engagement" of its Color brand in the adult-use market, Tsebelis continued.
Quarterly highlights from the earnings report include:
- Gross profit (before changes in fair value) of $1.37 million compared to the gross profit of $2 million in the previous quarter
- Gross margin (before changes in fair value) of 11% versus a negative gross margin of 70% in the fourth quarter of fiscal 2019
- Net and comprehensive loss of $9 million, what's a sequential increase of 25%
- Negative adjusted EBITDA of $5.1 million versus a loss of approximately $8.2 million in the previous period
- Cash and cash equivalents amounted to $14.1 million, compared to around $8.2 million in the prior quarter
- Cultivation cost of $0.84 per gram, up by 13% compared to the fourth quarter of last year
- 5,084 kilograms of dried cannabis sold
- That's an increase of 744% compared to the prior period
WeedMD CFO Lincoln Greenidge explained that the first quarter results "show the benefits of our combination with Starseed," which the company acquired in December. Simultaneously, the company obtained a $25 million equity investment from the LiUNA Pension Fund of Central and Eastern Canada.
WeedMD's Recent Moves
Meanwhile, last month, the Toronto-based company inked a deal with The Blinc Group, a manufacturer of bespoke vaporizers, via Starseed to utilize Blinc Group's proprietary vaping technology in its new 'Aurum Vapes.'