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Ventura Cannabis and Wellness says California cannabis assets have big revenue potential as the firm delivers C$1.3 million in revenue during 1Q

The cannabis company said that gross profits from cannabis came in at 36% for the three-month period ended May 31, with a cash balance of nearly C$2.8 million by the end of the quarter

Ventura Cannabis and Wellness -
Ventura’s assets include manufacturing and distribution licenses in California as well as a 700-square foot facility in the San Francisco Bay area

Ventura Cannabis and Wellness Corp (CSE:VCAN) released its first-quarter financials on Thursday showing revenue of nearly C$1.3 million.

The cannabis company said that gross profits from cannabis came in at 36% for the three-month period ended May 31, 2020, with a cash balance of nearly C$2.8 million by the end of the quarter.

“The management team has done a great job of disposing of the rehab assets, practicing financial discipline and managing our balance sheet,” said Lloyd Kaplan, chairman of Ventura Cannabis.

READ: Ventura Cannabis expects “solid assets” in California and Oregon to generate revenue in 2020

“We will continue to use our cash position to sustain the suite of cannabis assets under management and consider strategic transactions, while being flexible about how to best monetize them as the capital markets continue to be challenging to small cannabis companies in general.”

During the quarter, Ventura generated an annual run-rate of approximately $1.7 million in cannabis revenues, it said in a statement.

Ventura’s assets include manufacturing and distribution licenses in California as well as a 700-square foot facility in the San Francisco Bay area. The company has also developed an initial vape brand.

The firm told shareholders that its California assets have “tremendous revenue potential” once they become fully operational.

Los Angeles-based Ventura also has a revenue-generating, luxury retail dispensary in Portland, Oregon, and is in the process of acquiring a processing and wholesale license in the state.

“I continue to be proud of the accomplishments from the Ventura team over the past year, which has included disposing of the rehab division, while simultaneously launching and operating a cannabis business,” said Chris Heath, Ventura’s CEO.

“In the span of just over 12 months, the team has been able to create an attractive suite of cannabis assets in a cost-effective manner, while efficiently disposing of the rehab businesses, in a deteriorating industry where many of its past competitors could no longer operate. Every day we think about how to use our assets, which include cash and valuable cannabis operations and licenses, to maximize shareholder value.”

The firm reported a net loss of C$869,000 compared to $819,000 during the same period a year prior.

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

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Price: 0.075 CAD

CSE:VCAN
Market: CSE
Market Cap: $2.78 m
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