Yooma Wellness Inc (CSE:YOOM, OTC:LVVEF, AQSE:YOOM) said it achieved “significant” revenue growth so far this year and predicted revenue in excess of US$5mln for the final quarter of 2021, equivalent to an annualised run rate of US$20.3mln.
The company, which has a portfolio of cannabis-related wellness brands, reported revenues of US$2.1mln for the third quarter.
Net losses came in at US$2.6mln, reflecting cost of sales of US$1.6mln and expenses of US$3.2mln, partly relating to the integration of acquisitions and the capital raising and AQSE dual-listing in August.
Yooma continued to grow its portfolio in the third quarter with the acquisition of Vitality CBD, a UK distributor of CBD products, and Big Swig, a US-based specialty drinks business.
Since the period end, it has bought Vertex, a Japanese wellness company, and N8 Essentials.
The company recently announced the launch of Vitality CBD products in 300 ASDA stores and said it is now the most extensive CBD product range in the British supermarket group.
Looking ahead, Yooma said it continues to integrate its existing operations with recent acquisitions to take advantage of opportunities in the global wellness and CBD markets.
It added that is achieving cost synergies and exploring new sales channels for its products.
Yooma chairman Lorne Abony described the company as “a clear leader in the global CBD and wellness space” and said it is undervalued compared with its rivals.
“Based on actual revenue achieved in the third quarter of US$2.1mln, with only partial revenue contribution so far from key strategic acquisitions acquired during the quarter and subsequent to quarter-end, we believe that Yooma is significantly undervalued compared to its public competitors," Abony said.
Chief executive Jordan Greenberg added: "We are extremely pleased with the progress Yooma made in the third quarter, including the dual listing of the company's shares on the AQSE exchange in London, successful completion of a US$10.3mln capital raise, and the closing of two additional strategic acquisitions.
“We continue to integrate our existing assets to achieve both operational synergies and revenue growth."