1933 Industries Inc (CSE:TGIF) (OTCQX:TGIFF) CFO Stephen Radusch said that the cannabis company had implemented “prudent financial measures” during the group's fiscal third quarter to deal with the realities of the coronavirus (COVID-19) pandemic and position the company for growth.
In a statement accompanying the latest numbers, Radusch said: "During this challenging period, our main priority has been to implement prudent financial measures that will enable us to weather the uncertain climate brought on by the temporary closure of retail locations where our products are sold.”
He added: “We have reduced expenses and we are carefully managing our cash position, while maintaining operations amidst the pandemic. Going forward, we will continue to focus on cost controls and additional reductions as we improve efficiencies. We have continued to push the cultivation facility to full capacity, while building inventory for our AMA branded extraction products.”
The CFO said that as consumer buying trends have shifted to online sales, the company has adapted the strategy for its CBD business with expanded online sales channels for its Canna Hemp line.
Eugene Ruiz, the newly-appointed president of 1933 Industries, further stated: "We continue to take appropriate measures to reduce our expenses, so that we can effectively manage our business as the Las Vegas market returns to normal, with our over-arching goal of getting 1933 Industries to cash flow positive as soon as possible."
The vertically integrated cannabis company said it has postponed further expenditure towards its expansion projects in Nevada for both hemp and cannabis extraction.
“The company is holding off on any further capital investments to complete the hemp lab and, while the THC extraction lab has received all necessary permits, the company is pausing further construction for the time being,” the group said in a statement. Instead, 1993 Industries is maximizing production of THC concentrates in the existing facility. The decisions will be re-assessed when market conditions change, it added.
For its fiscal third quarter ended April 30, 2020, 1933 Industries clocked up revenue of C$2.6 million, a 17% decrease from the C$3.1 million netted in the previous quarter.
Operating expenses were $5.6 million, while the company posted a net loss of C$4.7 million, or C$0.02 per share. The adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization loss was C$3 million, a 45% improvement from the C$4.8 million loss in the fiscal second quarter.
The company’s balance sheet had C$4.9 million in cash and total assets worth C$54.6 million at the end of the quarter.
In business highlights, the company said it scaled up operations in its cultivation facility in Las Vegas, with all 15 grow rooms populated and continuous harvests occurring every 14 days.
The company also launched a new line of Canna Hemp products made with hemp seed oil.
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