Any time a cannabis company – one of many legal ones these days – comes out with news, it makes investors sit up and notice.
Toronto-based Newstrike Brands Ltd. (TSX-Venture:HIP) came out with fourth-quarter financial numbers, their first annual figures since the legalization of marijuana last fall.
The company's wholly-owned subsidiary, UP Cannabis Inc. by the bye, is a licensed producer of cannabis and related products under the Cannabis Act, 2018.
HIP realized Q4 sales of cannabis to the adult-use and wholesale markets in excess of $5.3 million. Gross margins before the fair value adjustment on the sale of this inventory was $2.5 million, or 53.5% of net revenue.
The company has been chomping at the bit since last summer and anxious to get the product to market. In October, Up Cannabis educated members of the general public about the responsible use of cannabis through activities including free outdoor yoga classes, live visual art displays, breakdance battles, live recordings of the Into the Weeds Podcast, and free concerts by Canadian artists, including Meghan Patrick and members of The Tragically Hip.
In the last quarter of calendar 2018, HIP generated net revenue of $4,652, compared to nary a penny by New Year’s Eve last year.
Newstrike shares approached noon EDT on Tuesday ahead three cents, or 6%, to 53 cents, on volume towering over 562,000 shares.
Related Stories
