Delta 9 Cannabis provide guidance on selected yearend financial results for 2018:
- Based on preliminary (unaudited) results, the Company anticipates revenues of between $7.6 million and $8.4 million for the twelve-month period ending December 31, 2018, compared to $944,114 for the same period the prior year. Year over year revenues are expected to be up over 700% in 2018 versus 2017.
- Based on preliminary (unaudited) results, the Company anticipates revenues of between $5.3 million and $6.1 million for the three-month period ending December 31, 2018, compared with $1,251,213 for the three-month period ending September 30, 2018. Sequential revenues are expected to be up over 320% in Q4, 2018 versus Q3, 2018.
- Management believes that revenue growth and disciplined cost management will allow the Company to achieve positive cashflow in fiscal 2019.
Full audited year end results will be published on April 23, 2019, pre-market, followed by a conference call later that day, details for which can be found at the end of this release.
“2018 was a record year for Delta 9 as the completion of our phase 1 expansion program generated significant revenue growth across our retail and wholesale market segments” said John Arbuthnot, CEO of Delta 9.
Revenue growth for the year was driven by the Company’s strong market position in Manitoba, opening of its first retail store, completion of initial shipments on its wholesale supply contracts, and its medical products and services business. The Company continued to ramp up its production capacity to 4,228 kilograms of cannabis per year during 2018. Based on its current production capacity and the Company’s cultivation and harvest schedules, Delta 9 expects to increase overall production capacity to over 16,000 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.
“Going forward, we continue to see strong demand for our premium products from the adult usage market and with the anticipated opening of three additional retail stores in the first half of 2019, we expect revenues to continue to grow,” said Arbuthnot. “These factors, together with our disciplined approach to managing operating expenses, and our growing portfolio of higher margin products, puts us in a position to achieve positive cashflow this year.”