WeedMD Inc (CVE:WMD), the medical cannabis producer, is hitting the development goals it promised shareholders and posted revenue of $235,659 in its first quarter of sales, it said, unveiling results for the three months to end June.
Revenues were mainly from the sale of dried medical cannabis and live cannabis plants.
The company received its licence from Health Canada to sell medical cannabis under the ACMPR legislation on April 28, 2017, and most of these sales occurred in June.
"We are hitting all of our licensing milestones, generating strong yields, maintaining costs in line with our budget and producing product that is exceeding our patients' expectations," said Bruce Dawson-Scully, chief executive at WeedMD.
"We are building our business and look forward to continuing to deliver value for all of our shareholders."
Highlights of the period included that the group's 25,620-square-foot indoor production facility in Ontario is now operating at full capacity and on track to produce in excess of 1,200 kg a year.
On June 15 it announced a partnership with Van der Pop to bring a leading female-focused brand to Canada and WeedMD expects to deliver medical cannabis under the Van der Pop brand to its Canadian patients starting in late 2017.
And Dawson-Scully said the momentum of the second was continuing into the third quarter
"We are leveraging management's deep industry expertise and relationships in the seniors, assisted-living and long-term care industries.
"The company is making significant strides in securing initial supply contracts in long-term care with our proprietary integrated care program. In addition, the company is working on a very compelling expansion opportunity to position the company strategically ahead of the future adult-use market," he added.
The company had cash of around $3.96mln at the end of the period and working capital of $6.5mln.
Management believes it has sufficient working capital to maintain its existing operations through the summer of 2018.