In a statement, the company said it ended the third quarter of fiscal year 2020 on November 30 with $501,000, compared to $402,000 in the second quarter, or a 24% increase. In the first quarter the company hauled in just $92,000 in revenue, or a 444% increase. Annualized, the company saw an organic growth rate of 96%.
Gross margins for cannabis operations were 34%. But as with most US cannabis assets, free cash flow continues to be limited, the company said.
READ: Ventura Cannabis and Wellness triples cannabis revenue thanks to strong pot sales in second quarter
Cash remained roughly neutral quarter-over-quarter as Ventura Cannabis continued to await regulatory approvals for new assets.
Total assets grew to $19,182,000 as accounts payable decreased by $500,000 between second quarter and third quarter of this year.
The company said management continues to work to dispose of or unwind the addiction services assets, as well as reduce liabilities and define the contingent liabilities more clearly.
"We had a fantastic quarter for revenue growth, the overwhelming majority of which was organic," said CEO Chris Heath.
"For the third quarter in a row we have seen revenue growth, but this quarter was different. We have proven to ourselves and the market that we can acquire brands and businesses and improve them quickly, increasing our market share and reducing our post-acquisition multiple.”
Heath said the company is well positioned for future revenue growth.
“First, we have a solid team on the west coast of the US that has years of experience in the full supply chain of cannabis, from seed to sale, with a proven track record for three consecutive quarters. Second, we have contracts in place where we expect to manufacture, distribute and dispense cannabis products in California and Oregon, and we are working on several other west coast states in the US for acquisitions and licenses. Lastly, we have no debt and we are operating our cannabis assets above breakeven," said Heath.
In other company news, Lloyd Kaplan has been appointed chairman of the Board, effective March 1, 2020, with a mandate to initiate capital markets communication and develop relationships in the capital markets to enable continued revenue growth.
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