The medical-grade cannabis producer’s 2019 revenue figures represented a 162% increase over 2018 levels, which came in at C$8 million.
During its fourth quarter ended December 31, 2019, the company saw its total revenue hit nearly C$2.9 million, derived entirely from consumer sales.
READ: WeedMD to report 2019 financials in May, enacts personnel and safety measures in response to the coronavirus
“With the significant ramp-up of our production platform, 2019 was a year of planned investment coupled with a strategic focus on building strong brands and distribution channels,” said Angelo Tsebelis, CEO of WeedMD. “The company’s $2.9 million in fourth quarter 2019 net revenue was comprised entirely of consumer sales as availability and demand for our Color Cannabis adult-use brand continued to expand.”
The cannabis company harvested 17,988 kilograms in 2019, a 921% increase compared with 2018 which includes 8,950 kilograms attributable to the WeedMD’s harvest of outdoor crops.
Toronto-based WeedMD also reported preliminary 1Q 2020 revenue of C$12 million in what was the first full quarter after its blockbuster deal with Starseed Holdings Inc in December 2019.
Path to profitability
“The strong momentum carried into the first quarter of 2020 where the company generated preliminary unaudited net revenue of $12 million, a record high quarter for WeedMD, with the Starseed medical brand and direct-to-consumer platform contributing significant high margin revenue,” Tsebelis told shareholders.
“This solid year-over-year and quarter-over-quarter revenue growth is reflective of our strategy emphasizing customer-centric initiatives to drive direct-to-consumer sales and stronger margins and cash flow as we execute on our commercial plan.”
CFO Lincoln Greenidge told investors that the company’s scaled-up cultivation and production capabilities combined with strong distribution channels puts it on a path to profitability.
“Our integrated cultivation, extraction and fulfilment operations will enable us to produce low-cost, quality cannabis to create an assortment of high-margin finished products, which should significantly enhance our profitability over the remainder of the year,” Greenidge said.
The firm reported a net loss of C$10.4 million for the year compared to C$895,000 during fiscal 2018. It ended the year with C$8.2 million in cash.
WeedMD recently kicked off its second outdoor cultivation season at its flagship Strathroy, Ontario facility where it will grow cannabis at the 27-acre outdoor field, with clones planted by early June and harvested throughout the fall of 2020.
Contact Angela at [email protected]
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