THC Global Group Ltd's (ASX:THC) Canadian hydroponics equipment division Crystal Mountain increased revenue in the March quarter primarily due to stronger sales in the lighting and lighting equipment product ranges.
Crystal Mountain grew revenue to $991,000, a 22% increase on the previous quarter.
New distribution agreements
The division is also securing distribution agreements within Canada and has expanded into Europe and the United Kingdom.
As these distribution agreements are settled and products come on sale, the company expects to see stronger sales in these regions.
Expanded product range
Crystal Mountain has expanded its product range through distributing new products imported from partners across Canada, and soon internationally.
The division is also exploring new sales channels including online cannabis-focused offerings targeted to the micro-cultivator market, which is rapidly increasing in Canada.
THC Global chief executive officer Ken Charteris said: “We are pleased to see our hydroponics equipment division continue to grow, particularly through our partnership strategy as we are able to both expand our product offering and broaden our market reach - both of which are core drivers of revenue growth.”
Earlier this month THC Global opened a share purchase plan offering shareholders to apply for up to $15,000 worth of additional shares at 50 cents each.
The company also released its April 2019 briefing note, which highlighted the near-term outlook for the company including the receipt of final Australian cannabis licenses and permits enabling two manufacturing facilities and cultivation sites.
It also listed signing key offtake agreements for products and securing cannabis supply through domestic production in its near-term outlook.
In addition to its core medicinal cannabis business, THC Global owns two Canadian companies - Crystal Mountain Products and Vertical Canna Inc.
Crystal Mountain is a revenue-generating global hydroponics retailer and distributor of equipment, material, and nutrients to cannabis growers and producers.
Vertical Canna is an investment vehicle through which THC Global intends to build, through acquisitions and strategic partnerships, a vertically integrated Canadian cannabis producer and retailer.