LOS ANGELES, March 03, 2020 (GLOBE NEWSWIRE) — via NetworkWire – Cannabis Strategic Ventures (OTCQB:NUGS) (“NUGS” or the “Company”), an emerging leader in the U.S. and California cannabis marketplaces, is pleased to announce robust growth and significant financial improvements for the most recently completed financial period ending Dec. 31, 2019. Revenue for the quarter ending Dec. 31 reached $1.35 million, representing sequential quarterly growth of approximately 91 percent, compared to the previous quarter. Gross margins grew meaningfully while operating efficiencies improved significantly.
“We’re excited to see consistent revenue growth,” commented Simon Yu, CEO of the Company. “In this highly regulated environment, it takes time to scale production. With a considerable portion of the permitting and construction behind us, we are poised for continued growth in the California cannabis marketplace.”
In addition to top-line growth, the Company’s total assets as of the end of the December quarter 2019 was just over $18.7 million from only $2.8 million for the year-ago period. Total current assets now equal approximately 113 percent of current liabilities. Cash and accounts receivables more than doubled as of the end of the nine-month period.
Gross margins for the December 2019 quarter rose to just over 33 percent from 25 percent for the nine month period ending Dec. 31, 2019, and from no gross margin production for the year-ago quarter. The net loss for the December quarter was cut to approximately $1.2 million from over $4.5 million during the September 2019 quarter. Expense ratios improved markedly for the periods ending Dec. 31, 2019.
Mr. Yu continued, “Both the business operations and our financials continue to trend positively. We have been able to substantially grow revenues and improve our gross margins while reducing our operational costs. We feel we are now starting to hit our business stride in the California regulated marketplace, and we look forward to a fruitful 2020.”
This robust growth follows what was already strong growth during the September quarter of 2019. For the nine month period ending December 31, Cannabis Strategic was able to increase revenues by more than $2 million. The Company expects strong revenue growth to continue for the foreseeable future.
About Cannabis Strategic Ventures
Cannabis Strategic Ventures Inc. (OTC: NUGS) is one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based that incubates, develops and partners with category leaders within the cannabis and ancillary sectors. The Firm’s NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands. For more information, visit http://www.CannabisStrategic.com
FORWARD-LOOKING STATEMENTS: This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management’s current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “would,” “could,” “will” and other words of similar meaning in connection with a discussion of future operating or financial performance.
Examples of forward-looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company’s actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward-looking statements. Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
Get Real-Time Updates from MJobserver.com
