Delta 9 Cannabis Inc. (TSX:DN) (OTCQX:VRNDF) has provided strong guidance for its fourth quarter and year-end results ending December 31, 2020, based on preliminary results.
The company said it anticipates net revenues for the three-month period ending December 31, 2020, to be between $13.7 million and $14.2 million. It noted that the figures compare with $10.6 million for the same period in 2019, an increase of between 29% and 34%, and $13.1 million sequentially from the third quarter of 2020, an increase of between 5% and 8%
Delta 9 said it anticipates revenues for the year ending December 31, 2020, to be between $51.8 million and $52.3 million, compared to $31.8 million for the same period in the prior year.
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The company added that it anticipates reporting direct cannabis production cost per gram of $0.67 and total cost per gram of $0.80 for the fourth quarter of 2020, compared with $0.74 and $0.86 respectively for the third quarter of 2020.
It also anticipates reporting total grams of cannabis produced of 2,128,288 for the fourth quarter of 2020, compared with 1,908,875 grams of cannabis for the third quarter of 2020, and anticipates reporting total retail transactions processed of 202,347 for the fourth quarter of 2020, compared with 184,750 for the third quarter of 2020.
“We are anticipating reporting record year-over-year and sequential revenue results for the fourth quarter of 2020,” said John Arbuthnot, CEO of Delta 9 in a statement. “Delta 9 is working to separate itself from its peers by posting strong financial and operating results and continuing to grow its revenue streams from its three core business units.”
Delta 9 said it will provide investors with a full breakdown on its progress in these areas when it releases its results for the 2020 year-end on March 30, 2021, and will hold a conference call to discuss them on that day at 9.00am. Eastern Time. Arbuthnot and the group's chief financial office Jim Lawson will give a presentation, followed by a question-and-answer period.
Investors can dial in to the call via1-888-886-7786; a replay will be available until 12.00am midnight on Eastern Time, June 30, 2021, via 1-877-674-6060, replay passcode: 641689 #
Delta 9 is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells its cannabis 'Grow Pods' to other businesses.
The group's wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com