WeedMD Inc (TSXV: WMD) filed its first quarter financials yesterday evening, reporting net revenues of CAD$3.34mm for the quarter, with gross profits before fair value adjustments coming in at $0.5mm. Revenues were up on a year over year basis, wherein the firm recorded $1.14mm in the same quarter last year.
Gross revenues, which came in at $3.69mm, consisted of $0.44mm in sales directly to patients, while $3.26mm was attributed to wholesale sales – including sales to provincial regulatory bodies.
WeedMD reported its average selling price per gram of dried cannabis at $5.18, up $0.02 from the previous quarter. The firms selling price range also increased marginally, with the range now extending from $3.62 to $6.33 per gram, which has moved its way up from $3.41 to $6.33 on a per gram basis. Yield per plant improved significantly, from that of 39 grams per plant to a current 68 grams per plant expected.
Notable transactions throughout the period include the purchase of the 98-acre Strathroy property which houses WeedMD’s licensed Strathroy facility. The property was purchased for $17.6mm in cash, and $5mm in units of WeedMD common stock. There was also an initial deposit paid on the property, which consisted of three million share and three million warrants, with a value of $5.89mm. Total PP&E acquisition costs came in at $29.66mm for the quarter, which was covered by a loan sourced through Bank of Montreal.
To learn more about WeedMD’s Strathroy facility, view our facility tour here.
Total proceeds from the Bank of Montreal loan consists of $35.43mm for the quarter, out of a total $39mm available. The effective interest rate over the term of the loan is close to 5% per annum, but may fluctuate based upon the current prime rate. The loan is set to mature in 2022.
WeedMD reported a net loss of $2.43mm for the first quarter of 2019, or ($0.02) per share.
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