Delta 9 Cannabis (TSXV: NINE) (OTCQX: VRNDF) reported financial results for the fourth quarter and the year ending Dec. 31, 2018.
Operating revenues for the three-month period ending Dec. 31 was of C$5.27 million, up 321%, from C$1.25 million for the three-month period ending Sept. 30.
The company says that prudent cost management helped it narrow the quarterly loss to C$2.17 million, or a loss of C$0.02 per share, for the three-month period ending Dec. 31, versus a loss of C$2.23M, or a C$0.03 loss per share, for the three-month period ending Sept. 30.
The company reported operating revenues of C$7.57 million for the year ending December 31 up 702%, from C$944,114 for 2017. Net loss was C$8.61 million for the year, versus a loss of $7.92 million for 2017. The company attributed the loss primarily to expansions it made in advance of legalization of recreational use cannabis in the fourth quarter of 2018.
Delta 9 seems to be in a strong financial position, with working capital of C$20.7 million and total assets of C$46.0 million, having raised over C$30.7 million in debt and equity during the year.
“2018 was a transformation year for Delta 9 as we proved our business model of using retrofitted shipping containers (Grow Pods) to grow cannabis successfully and produced a consistent high-quality cannabis product,” CEO John Arbuthnot said in the earnings release.
“Our strategy of being one of Canada’s only vertically integrated cannabis companies with licenses for production, processing, distribution and retail operations is paying off and now producing significant financial results. The legalization of the adult consumer recreational market in October last year is only the beginning of many new and exciting opportunities for the Company,” Arbuthnot added.