Slang Worldwide Shares Slightly Slide On Preliminary Results

Slang Worldwide Inc. SLNG SLGWF released Tuesday preliminary, unaudited full-year and fourth-quarter 2020 financial results with quarterly revenue of CA$9.66 million ($7.7 million), compared to CA$8.7 million in the same period of 2019.

Financial Highlights

The cannabis consumer packaged goods company reported full-year 2020 revenue of CA$ 26.82 million, which compares to CA$29.2 million in the prior year.

Slang also reported an adjusted EBITDA loss in a range of CA$900,000 to CA$1.4 million.  

At the end of 2020, the company held CA$6.48 million in cash and cash equivalents, which is less than the CA$18.9 million it held at the end of 2019.

During the fourth quarter, Slang achieved several milestones including two acquisitions: Oregon’s LBA Global Corporation, and Pleasant Valley Ranch. The company also partnered with Natura and Flower By Edie Parker, and launched a new concentrate product named the Gyro.

“In 2020 Slang became a stronger, more vibrant business as we integrated companies, signed new strategic partnerships and continued to grow our brands,” Chris Driessen, CEO of SLANG, stated. “We are now a plant-touching company, which is in the early phases of providing more meaningful revenue and the opportunity to generate profit in the coming quarters. In Q4, we generated solid results to cap off our year and set the stage for a promising 2021.

Recent Business Activities

The company highlighted its strategic collaboration with a Vancouver, Washington-based grower and processor, Snowcrest LLC, to reach the state with its products. Under the partnership, Snowcrest will produce SLANG-branded products, while Slang’s team will work on placing them in stores across the state. The agreement incorporates a royalty-based payment format.

Furthermore, Slang said it expects its new line of Slang products, dubbed District Edibles, to hit the shelves across Florida by May.

At the time of writing, Slang’s shares were trading 3.58% lower at 33 cents per share.

Photo by Esteban Lopez on Unsplash