POINT ROBERTS, Wash. and DELTA, British Columbia, Feb. 07, 2019 (GLOBE NEWSWIRE) — Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the rapid expansion plans coming to the market after strong Q1 Financials.
Q1 2019 is turning out to be quite the boon for many cannabis companies and most are wasting little time in taking advantage of this added cash flow and planning for future expansion of their respective companies.
Aurora Cannabis Inc. (TSX: ACB.TO) (NYSE: ACB) recently provided an expected revenue range for the second quarter of the Company’s Fiscal 2019; the period ended December 31, 2018, with the full results published on Monday, February 11, 2019 pre-market, followed by a conference call later that day.
Based on preliminary results, the Company anticipates revenues for Q2 2019 of between $50 million and $55 million, compared to $11.7 million for the same quarter in the prior year, and compared to $29.7 million for the previous quarter ended September 30, 2018 (“Q1 2019”). The results reflect an anticipated revenue growth rate in excess of 327% compared to Q2 2018 and in excess of 68% compared to Q1 2019.
Following the release of these results, Aurora quickly announced it has entered into a letter of intent to acquire all the issued and outstanding shares of privately held Whistler Medical Marijuana Corporation, in an all-share transaction valued at up to approximately $175 million.
Golden Developing Solutions, Inc. (OTC: DVLP), an emerging leader in the Cannabis, Hemp, and CBD marketplace, announced similar accelerating revenue growth for its “Where’s Weed” division, including quarterly year over year sales growth of 149% and total Q4 revenues in excess of $300K.
DVLP CEO Stavros Triant commented, “Frankly, our Where’s Weed segment has out-performed, both in terms of financial performance and in terms of network effects. One major consequence of this latter impact is that a large and increasing number of our platform dispensaries have indicated that they would be excited by a vertical integration on our side, such that DVLP represents a one-stop shop: marketing dispensaries, locating customers and supplying the product. We ran the math and it makes sublime sense. With the cash flow coming from that business, we can seamlessly add a powerful new segment in stride and everybody wins.”
Management states that the Company plans to market both 99% pure CBD distillate and full-spectrum CBD products and to target major wholesale manufacturers and dispensaries.
Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF), a leading vertically integrated Nevada cannabis company, announced increased sales in January, having served an average of 1,550 customers per day in January compared to an average of 1,430 per day in December, an 8.4% increase month over month.
Bob Groesbeck, Co-CEO of Planet 13, said, “Our Medizin dispensary grew from serving an average of less than 200 people per day, to over 800 people per day over a period of two years. The Superstore has been open for three months and we are very pleased with the steady growth in customer traffic and average ticket. We expect to continue growing monthly sales as we gain traction with visitors to Las Vegas, optimize our marketing programs and perfect the customer experience. Over the rest of the year we will also be taking action to build-out some of the remaining 112,000 square feet available to us at the Superstore location, starting with a coffee shop and consumer-facing edibles and concentrates production lines.”
“In our second quarter, Aphria continued strengthening its position as a premier supplier of medical and adult-use cannabis to the Canadian market, building long-term competitive advantage and developing key global opportunities,” said Mr. Neufeld.
He continued, “A top priority for Aphria is expanding production and automation to secure our long-term cost and scale advantages. The Part IV and V expansions of Aphria One are now complete and awaiting Health Canada approval, while an application for a cultivation license at Aphria Diamond has been submitted and is awaiting pre-cultivation inspection. Based on this, we now expect to generate first sales from these new facilities later in the calendar year.”
These strong early financials for 2019 having given the cannabis sector an added boost as each company expands to gain a stronger and larger footprint in the market. Where’s weed going? The financial answer seems to be: higher and higher.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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