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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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.