Business
Cannabis Strategic Reports 91% Sequential Growth to $1.35 Million, Strong OpEx Reductions and Balance Sheet Improvements
Cannabis Strategic Reports 91% Sequential Growth to $1.35 Million, Strong OpEx Reductions and Balance Sheet Improvements.
About this update from Cannabis Strategic Ventures
[{"type":"text","content":"\n LOS ANGELES, March 03, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Cannabis Strategic Ventures (OTCQB:NUGS) (“NUGS” or the “Company”), an emerging leader in the U.S. and California cannabis marketplaces, is pleased to announce robust growth and significant financial improvements for the most recently completed financial period ending Dec. 31, 2019.  Revenue for the quarter ending Dec. 31 reached $1.35 million, representing sequential quarterly growth of approximately 91 percent, compared to the previous quarter.  Gross margins grew meaningfully while operating efficiencies improved significantly. “We’re excited to see consistent revenue growth,” commented Simon Yu, CEO of the Company.  “In this highly regulated environment, it takes time to scale production.  With a considerable portion of the permitting and construction behind us, we are poised for continued growth in the California cannabis marketplace.” In addition to top-line growth, the Company’s total assets as of the end of the December quarter 2019 was just over $18.7 million from only $2.8 million for the year-ago period.  Total current assets now equal approximately 113 percent of current liabilities.  Cash and accounts receivables more than doubled as of the end of the nine-month period. Gross margins for the December 2019 quarter rose to just over 33 percent from 25 percent for the nine month period ending Dec. 31, 2019, and from no gross margin production for the year-ago quarter.   The net loss for the December quarter was cut to approximately $1.2 million from over $4.5 million during the September 2019 quarter.  Expense ratios improved markedly for the periods ending Dec. 31, 2019. Mr. Yu continued, “Both the business operations and our financials continue to trend positively.  We have been able to substantially grow revenues and improve our gross margins while reducing our operational costs.  We feel we are now starting to hit our business stride in the California regulated marketplace, and we look forward to a fruitful 2020.” This robust growth follows what was already strong growth during the September quarter of 2019.  For the nine month period ending December 31, Cannabis Strategic was able to increase revenues by more t...