Lotus Ventures Inc., a premium cannabis producer in Canada, today announced the results for the three and nine months ended May 31, 2021.
- The Company reported quarterly revenue of $1.43 million and $4.24 million for the nine months ended May 31, 2021. The third quarter was also the fifth consecutive quarter where revenues continued to exceed $1.37 million.
- Gross margin before fair value adjustments of $478,268, or 33% of net revenue for the three-month period. Gross margin after fair value adjustments of $616,083, or 42% of net revenue in the third quarter.
- The Company reported its fourth profitable quarter and net income of $208,893 or 14% of net revenue for the three-month period.
- The Company has now recorded positive EBITDA in four quarters since commencing operations.
- The Company paid $415,765 of loans payable during the nine months ended May 31, 2021.
- The Company increased harvest yields by approximately 15% and sold 626,000 grams in the third quarter. The Company cleared out a portion of small flower inventory at market prices which weighed on the average selling price in the quarter. The Kalifornia continues to obtain favorable wholesale selling prices when sold to the market.
- The Company’s Kalifornia flower continues to test with consistent THC and terpene results. The Company’s flower is currently sold in six provincial cannabis retailers from B.C. to Nova Scotia and is sold at leading private cannabis retailers such as Spiritleaf, Fire and Flower and Canna Cabana.
- The Company completed its 51st harvest since commencing operations, achieving craft quality at a commercial scale.
- The Company engaged Oak Hill Financial on May 25th, 2021 to enhance the Company’s capital market presence. Oak Hill has introduced the Company to new institutional investors and prospective lenders in preparation for the Phase 2 Expansion.
RESULTS OF OPERATIONS
Selected Quarterly Financial Data (unaudited)
The financial results of the Company for the five most recent quarters are summarized below:
|Description||Three months ended May 31, 2021||Three months ended Feb 28, 2021||Three months ended Nov 30, 2020||Three months ended Aug 31, 2020||Three months ended May 31, 2020|
|Cost of Goods Sold||$(959,495)||$(741,533)||$(616,880)||$(683,159)||$(807,079)|
|Net Income (Loss)||$208,893||$329,414||$(339,835)||$(231,443)||$1,231,779|
|Net Income (Loss) per Share, Basic and Diluted||0.00||0.00||$0.00||$0.00||$0.01|
|Total Long-Term Liabilities||$Nil||$Nil||$Nil||$Nil||$Nil|
|Cash Dividends / Share||$Nil||$Nil||$Nil||$Nil||$Nil|
“This quarter was another step towards stabilizing our financial performance as we prepare to expand our facility, and our sales have been consistent throughout the first three quarters of this year,” said Dale McClanaghan, Lotus CEO.
The Company’s third quarter financial results are available on SEDAR or on the Company’s website at lotuscannabis.ca/investors. In addition, the Company has uploaded a new Investor Presentation to its website.
About Lotus Ventures Inc.
Lotus Ventures Inc. is one of the largest independent premium-craft cannabis producers in Canada. The Company leverages its decades of experience in controlled-environment agriculture, construction and real estate development with the goal to be a low-cost producer of high-quality cannabis. Our consumer brand Lotus Cannabis Co. ™ has achieved one of the top selling flower products in Ontario through a collaborative strain launch with Kolab Project, helping cultivate our reputation as a consistent and high-quality flower producer. The Company has established wholesale relationships across Canada and has its flower listed in eight provinces.