Vibe Cannabis Revenue Spikes 225%, Dispensary Operator Touts Positive Adjusted EBITDA

Cannabis retailer Vibe Bioscience Ltd. VIBE VBSCF posted a first-quarter financial update Thursday showing strong growth to start 2020. 

The quarterly results were driven by substantially increased year-over-year sales volumes coming from Vibe's dispensaries in California.

Here’s what the company revealed in its first-quarter report: 

• Revenue of $4.27 million, up by 225% compared to the same quarter last year
• Quarterly adjusted EBITDA of $335,549,  a sequential increase of 312% and a 466% year-over-year increase
• Gross margin increased by 25% quarter-over-quarter, reaching $1.47 million
• Net loss of $220,000, down by roughly $2 million compared to the corresponding quarter in 2019
• General and administrative expenses decreased sequentially by 22% to $620,000 

“The first quarter of 2020 marked a significant milestone for Vibe,” CEO Mark Waldron said in a statement.

“Not only did we achieve record dispensary sales volumes and positive adjusted EBITDA, Vibe was one of only a few public cannabis companies to achieve positive pre-tax net income during a challenging quarter.”

Vibe's California dispensaries generated revenue of approximately $4 million during the first quarter.

Some of the company’s quarterly operational milestones include: the launching of retail operations at its Redding, California dispensary; the introduction of curbside pickup at all locations; the reconstruction of its dispensary in Sacramento; and receiving of delivery service approval from the city of Redding.

In March, the company’s subsidiary bought a 13,500-square-foot cannabis cultivation facility in Crescent City, California.

Under the deal, the Vibe subsidiary agreed to acquire NGEV, Inc.

In exchange, the company is required to issue 600,000 of its common shares and assume roughly $463,000 in term debt.

The company expects to launch an expansion of the cultivation canopy by 40% following the closure of the acquisition of NGEV Inc. cultivation.

In addition, it anticipates its revenue in the subsequent quarter will reach around $5.35 million to $5.5 million.

VBSCF Price Action

The stock was trading 3.14% higher to 13 cents at the time of publication Thursday.

Courtesy photo