SpeakEasy Cannabis Co. Reports 2Q Sales And 3Q Earnings, Expects To Quadruple Capacity To Process Extracts

Cannabis company SpeakEasy Cannabis Club Ltd. EASY (Frankfurt:39H) has generated $1.65 million in revenue from the sale of flower, extracts and services over the nine months ended April 30.

According to its earning report posted Friday, that's a growth of 100% over the comparable period.

CEO Malcolm Davidson said the company is still "ramping" its sale profile while maintaining a positive gross margin.

"We are pleased to report our earnings for Q3 2021, marking this the second quarter of reported revenues," Davidson said.

Financial Highlights

  • Gross profit before fair value adjustments amounted to $1,008,604 in the nine months ended April 30.
  • Operating expenses for the same period totaled $5,808,018.
  • A total of 383,593 grams of product were sold.
  • Loss per share amounted to 2 cents.
  • Cannabis inventory of $11,352,687 for the period.
  • As of April 30, the company had roughly $36.4 million in total assets, total liabilities of $9.43 million and $11.25 million in working capital.
  • Over the period, the company invested more than $2.5 million in growing facilities and equipment.

Operational Highlights

Based in Rock Creek, British Columbia, the company recently disclosed that it had reached a maximum production of its indoor flower, extracts and pre-rolled joints.

Potential production capacity for extracts increased by up to 400% after the company's partner, RC Frontier Labs Ltd., which is scheduled to be fully operational in early July, bought new extraction equipment.

The company, which anticipates processing and selling its 2021 crop by November 2022, also

intends to increase indoor flower production to approximately 365 kilos per month by October 2021 and to over 650 by December 2021.

"We are well on our way with our preparations for the 2021 outdoor grow operation," Davidson said. "We expect our 2021 harvest yield to double the 72,000 kgs that were harvested in 2020."

Photo by Elsa Olofsson on Unsplash

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