Cannara Biotech Cannabis Co. Expects To Post $7.1M In Q3 Revenue After Successful Market Launch In Quebec

Cannara Biotech Inc. LOVE LOVFF 8CB disclosed Monday it expects to generate roughly $7.1 million in the third quarter of 2021. That's a $5.1 million revenue growth compared to the prior period.

The cannabis revenue, net of excise tax from products destined for retail, is projected to range between $3.2 million to $3.4 million for the quarter. In addition, Cannara anticipates that cannabis revenue from wholesale supply agreements will be in the range of $2.8 million to $2.9 million, up from $1.1 million in the previous quarter.

The company's lease revenue is expected to hit roughly $800,000 for the period.

"We could not be more pleased with our preliminary results, which validate our capabilities and foresight in responding to consumer demand," Nicholas Sosiak, the company's CFO said.

Zohar Krivorot, Cannara's president and CEO agreed. "Our market launch results reaffirm that our brand strategy is working and will deliver long-term value for our shareholders."

The Montreal-based company recently purchased the Quebec-based grow facility under a deal with The Green Organic Dutchman Holdings Ltd.'s TGOD TGODF, a subsidiary of Medican Organic Inc., for $32.7 million.

"Valleyfield facility was driven by our anticipation of the tremendous growth in revenue over this past quarter," Sosiak continued.

The deal included all industrial and agricultural land, main hybrid greenhouse, rooftop greenhouse, as well as all support buildings and certain related equipment located in Valleyfield.

"Cannara intimately understands the quality and pricing that today's modern consumer deserves, and we look forward to expanding our market reach with added capacity from the acquisition of our Valleyfield facility," Krivorot added.

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