Nabis Holdings Inc (CSE:NAB) (OTCMKTS:NABIF), the cannabis investment firm, told investors it expects increased revenues and profit margins going forward, now that it owns the rights to operate the Emerald dispensary in Phoenix, Arizona.
Reporting fourth-quarter results for the three months to end October, the group said the transfer of ownership occurred on October 10 and in just 21 days, the group reported gross revenue of C$644,000 from dispensary operations.
"We continue to make progress on our strategic plan by diligently working on building out our investments in both Arizona and Michigan," said Shay Shnet, the chief executive and director of Nabis, in a statement.
READ: Nabis Holdings beefs up Michigan assets as the state prepares for recreational cannabis sales on December 1
"In parallel with our buildout of our Camp Verde hub, we are also moving full-steam ahead with our dispensary build-outs in Michigan and plan on capitalizing on the newly legalized recreational market by the first half of 2020."
The firm's cannabis investment portfolio in Michigan currently stands at seven properties and a parcel of land, significant since the state legalised recreational adult use of cannabis as of December 1, 2019.
In September, Nabis also acquired a 44,000 sq ft cultivation, fulfillment and production facility in Camp Verde, Arizona - to serve as a hub for group operations.
Nabis said the cost of goods sold and the corresponding gross profit from the dispensary operations from October 11 to October 31 were C$444,000 and C$201,000 respectively.
The net loss in the fourth quarter was C$4.3 million compared to a net loss of C$4 million in the same quarter 2018.
As of October 31, Nabis had total assets of C$45.3 million, including cash and cash equivalents of C$4.8 million.
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