Gage Growth Corp. (CSE: GAGE) this morning announced its financial results for Q2 2021, which saw US$26.4 million in revenue. This is an increase from Q1 2021’s revenue of US$17.6 million and Q2 2020’s revenue of US$11.5 million.
The cannabis firm relayed that the revenue boost was driven primarily by cultivation capacity expansion and the addition of a new dispensary.
Gross margins for the quarter came in at 34.2%, a climb from the previous quarter’s 26.1%, but a decline from previous year’s 47.3%. As with the last quarter’s margin improvement, the company said this quarter also benefitted from a greater mix of higher-margin sales from retail locations and cultivation capacity expansion.
WIth US$14.8 million total operating expenses, the company posted a net loss of US$9.4 million for the quarter, compared to last quarter’s net loss of US$10.8 million and last year’s net loss of US$2.9 million. The quarter’s net loss translates to US$0.07 per share.
Meanwhile, adjusted EBITDA came in at a loss of US$1.9 million, up from Q1 2021’s loss of US$3.8 million.
The company ended the quarter with US$32.8 million in cash and cash equivalents coming from a starting balance of US$45.5 million at the beginning of the year. This figure puts the value of the current assets at US$50.4 million while current liabilities ended at US$27.3 million.
The Toronto-based company also shared that the state of Michigan posted $171 million of cannabis sales in July, positioning it as the third-largest cannabis market in the United States.
Gage Growth Corp. last traded at $2.42 on the CSE.
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