Ventura Cannabis and Wellness Corp (CSE:VCAN) (OTCMKTS:CVHIF) shares jumped on Wednesday after the firm released preliminary fiscal second quarter results Wednesday that revealed a major uptick in cannabis revenue.
The company said it expects cannabis revenue to exceed $350,000 for the three months ending August 31, nearly four times greater than the $92,000 it reported last quarter.
Cash on hand is expected to come in just above $4.25 million, the company added, also a quarter over quarter increase.
Going forward, Ventura said it plans to continue looking for opportunities to sell its addiction services assets and focus solely on growing its cannabis revenue.
"We saw good growth from our core cannabis business and I am looking forward to publishing our full quarterly financials at the end of the month as it has been a good quarter for us,” Ventura's president Chris Heath said in a statement.
Heath also acknowledged recent volatility in the company’s share price, but said there wasn’t an obvious market explanation.
“We are unaware of anything in our business that would result in the recent volatility in our share price,” Heath said. “It seems the entire capital market for cannabis is challenging at the moment. In this environment, it remains important to note that we have cash that can finance our plan to increase our cannabis revenues and cash flows and we are not reliant on the capital markets for funding that growth."
The company’s share price rose by 16% on Wednesday to C$0.29.
—Updated to include closing price—
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