Entourage Health Posts $14.9 Million Record Revenue In Q3 Following Rebrand From WeedMD

Canadian producer and distributor of cannabis Entourage Health Corp. ENTG ETRGF announced its financial results Tuesday for the three and nine months ended Sept. 30, 2021.

The Toronto-based company reported a 94% year-over-year increase in the total revenue reaching $14.9 million. Net revenue amounted to $10.8 million, up 71% from the prior year, reflecting higher direct-to-consumer and direct-to-patient sales.

"Our third-quarter results reflect the advancements we are making in our business transformation as we focus on product quality and craftsmanship while improving operational efficiencies throughout our organization," said George Scorsis, interim CEO and executive chair at Entourage. "With a fourth consecutive quarter of record revenue growth in both adult-use and medical sales, our award-winning products are standing out in the marketplace."

Q3 2021 Financial Highlights

• Gross loss, before changes in fair value, was $4.2 million compared to gross profit of $3.1 million for the prior period and $0.1 million in the same quarter of 2020.
• Gross margin % of net revenue before changes in fair value vas negative at 39%, versus 1% in the same quarter of 2020.
• Loss and comprehensive loss totaled $17.5 million, compared to a $26.2 million loss in the corresponding quarter of 2020.
• Adjusted EBITDA came in negative at $4.1 million, versus a $1.9 million loss in the prior year's period.
• Selling, general and administrative expenses totaled $4.5 million, compared to $10.4 million in the prior quarter and $5.3 million in the corresponding period of 2020.
• As of Sept. 30, the company had roughly $12.4 in cash and cash equivalents, $27.6 million in inventory, $564 000 in biological assets, working capital of negative $41.6 million, and total assets of $151.2 million.
• The average yield per plant was 186 grams compared to 104 grams in the same quarter of last year.
• Total dried cannabis sold was 4,136 kgs, compared to 2,098 kgs in the same quarter of 2020.
• The weighted average cost per gram of inventory on hand was $0.55, compared to $2.11 for the same period in 2020.

Corporate Highlights During & Post Q3

• Announced a corporate name change and rebrand from "WeedMD Inc." to "Entourage Health Corp." in July.
• Changed OTCQX market ticker symbol for its shares from "WDDMF" to "ETRGF" in September.
• Introduced Saturday Cannabis 510-vapes in Blood Orange cultivar.
• Pre-Roll products in Mango Haze and Pedro Sweet Sativa continue to be top-sellers in BC, with 10-pack pre-roll products a top seller in the third quarter.
• Expanded its Color Cannabis products into New Brunswick commencing in July 2021, making it accessible to over 95 percent of Canada's retail market.
• Confirmed the expansion of its Saturday Cannabis brand into Quebec, expanding Color and Saturday product SKUs.
• Announced it had entered into agreements with BBCCC, Inc., a subsidiary of The Boston Beer Company, Inc., and Ontario-based Peak Processing Solutions to launch a new portfolio of non-alcoholic cannabis-infused beverages in Canada.
• Announced the launch of Fire & Flower-branded CBD softgel product line produced in-house at its Aylmer-based extraction hub.
• Announced the Canadian launch of acclaimed Mary's Medicinals Transdermal Patches.
• Closing of the previously announced acquisition of CannTx Life Sciences on Nov. 1.

ETRGF Price Action

Entourage Health's shares traded 11.82% lower at $0.0925 per share at the market close on Monday.