Exactus Inc (OTCMKTS:EXDI), the healthcare group which farms and manufactures hemp-derived cannabidiol (CBD) products, said 2019 saw it build the foundation to become an industry leader.
"2019 was a transformational year for Exactus as we entered into the hemp market in January,” Emiliano Aloi, Exactus president said in a statement accompanying the firm's results for the year to December 30, 2019.
"We completed our first harvest which is currently being processed into raw ingredients and have entered into multiple supply agreements with industry leaders in anticipation of additional supply as we are confident in our build out of the sales and marketing team,” Aloi added.
Entering the hemp market early in 2019 meant the group posted revenue for the year of C$345,680 versus zero in 2018, while the net loss was around C$10.2 million from a loss of around C$4.3 million the previous year as expenditure inevitably increased.
Exactus said it expects gross margins to improve as it begins using lower-cost inventory from its fall harvest.
Looking ahead, the group noted that, during the first quarter of this year, it received purchase orders for around C$900,000 of CBD and CBG products.
"We now have the components in place to execute our long-term strategy and are looking forward to growing off of the foundation that we have established," the group added.
Shareholders’ equity increased to C$3.7 million in calendar 2019 from a shareholder deficit of C$3.4 million in 2018.
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