DELTA 9 CANNABIS INC. provided guidance on select second quarter results for the three-month and six-month period ending June 30, 2019:
- Based on preliminary results, the Company anticipates revenues for the three-month period ending June 30, 2019to be between $8.1 million and $8.8 million compared with $715,746 for the three-month period ending June 30, 2018.
- Based on preliminary results, the Company anticipates revenues for the six-month period ending June 30, 2019 to be between $13.8 million and $14.5 million for the six-month period ending June 30, 2018, compared to $1.05 million for the same period the prior year.
- Management believes that continued revenue growth and disciplined cost management initiatives will allow the Company to achieve positive cashflows from operations in fiscal 2019.
“Going forward, we continue to see strong demand for our premium quality products from the recreational usage market and with the anticipation of Health Canada’s rules on extraction this October, we expect revenues to continue to grow this year,” said John Arbuthnot, CEO of Delta 9. “These factors, together with our B2B growth in Grow Pod sales to micro producers and our growing portfolio of higher margin products, puts us in a position to achieve positive cashflow this year.”
Revenue growth for the first six months of 2019 was driven by the Company’s strong market position, with three retail stores strategically located in Winnipeg and Brandon, Manitoba and first shipments of our wholesale supply contracts to Alberta and Saskatchewan.
The Company continues to ramp up its production capacity to 5,350 kilograms of cannabis per year during 2019.
Delta 9 is also looking forward to the upcoming finalization of the draft regulations which will allow derivative, higher margin products such as vape pens, beverages, and edibles to be sold in the Canadian adult use market during 2019.
Full second quarter results will be published on August 27, 2019, after the close of the market, followed by a conference call the next morning, details for which can be found at the end of this release.