Cann Group Limited (ASX:CAN) released its quarterly activities reports and cash flow statement for the quarter on June 30. The company was the first to receive a medical cannabis cultivation license following legalization of cannabis in Australia.
Cann Group Q4 2019 highlights
In the company’s quarterly release the company has indicated that it delivered its first commercially grown and Australian sourced cannabis to the government under a supply agreement with the Victorian government for use by patients. The company has stated that the cannabis resin delivered was extracted from dry cannabis flower produced at the company’s Southern facility in Melbourne according to a supply agreement with DHHS.
Equally the company took steps to possess the Mildura site in the quarter as part of the company’s third planned facility for cultivation and large scale production of medical cannabis. Already groundwork and transformation of the manufacturing area has begun at the site. The required prefabricated elements necessary to begin the remodelling of the greenhouse facility have already been shipped by the company’s supplier in Netherlands.
In April Cann Group completed a NZ$6 strategic investment in New Zealand based cannabis company Pure Cann NZ limited. The investment secured a 20% stake in the company and it will accrue in stages with the first 10% supposed to be completed before or on August 30. The company also signed a Technical Services Agreement with Pure Cann to help in accelerating its growth plans in the New Zealand market.
The company reported that it secured sales revenue of up to $2.3 million in the quarter which led to a 413% increase in year-over-year revenue. Around AUD 2.08 million was spent in operations in the quarter which include AUD 27, 000 on research and development. In the next quarter the company has predicted total cash outflow to be around AUD 13.76 million. At the end of the quarter the company’s cash balance was around AUD 46.4 million.
Cann Group’s stock jumped 1.4% following the release to close the session at AUD 2.180. currently the stock has a market cap of AUD 304.88 million.