Delta 9 Cannabis Posts Revenues of $8.88 Million

Delta 9 Cannabis (TSXV: DN) filed its second quarter financials after the bell today, recognizing $8.88 million in revenues with a net loss of $1.31 million for the quarter ended June 30, 2019. The revenues beat prior guidance provided by the firm for revenues of $8.1 to $8.8 million.

While Delta 9 also guided towards positive cash for fiscal 2019, evidence of such guidance has yet to appear in financial filings. The firms cash position decreased from $7.76 million to that of $3.04 million over the current quarter. Receivables elected to go in the other direction, growing from $3.41 million to $5.78 over the quarter, while inventories grew to $5.72 million from $5.18 million.

Accounts payable decreased over the quarter by roughly $0.24 million, however current liabilities more than doubled to $11.35 million thanks to a lease liability becoming current. However, total liabilities increased marginally by $0.06 million.

Revenues increased by 57.77% on a quarter over quarter basis, demonstrating solid growth from the company over the three month term. A gross profit of $2.94 million was posted for the quarter, with gross margins at 33.18%, versus last quarter at $1.81 million and 32.24% respectively. Associated expenses decreased 10.13% over the quarter to that of $4.64 million, with general and admin consisting of $3.07 million.

The average sale price of cannabis on a per gram basis remained unchanged at $7.86, with the average plant maintaining an average yield of 30 grams.

Delta 9 Cannabis closed today’s session at $0.77 on the Venture, down 9.41%.

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Information for this briefing was found via Sedar and Delta 9 Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.