Australis Capital Inc (CSE:AUSA, OTCQB:AUSAF) (dba Audacious) said its 3Q 2022 revenue has grown exponentially thanks to its international expansion efforts and new commercial agreements with distributors.
The Las Vegas-based cannabis company reported C$2.37 million in revenue over the three-month period to end December 31, 2021, up 2,400% year-over-year from $90,400.
During the quarter, Audacious recorded its first billings in California, which was offset by lower kiosk income as the Cocoon business is wound down.
READ: Audacious accelerating its multi-market entry strategy, its says in corporate update
The third quarter also saw the firm expand internationally through its partnership with Green Triangle Health, which Audacious CEO Terry Booth said has already started generating revenues.
“Our partner is exceptionally well-connected, which is translating into commercial arrangements with major regional and international distributors,” Booth told investors in a statement.
In the US, the firm moved into New York through a partnership with First Americans of the Saint Regis Mohawk Tribe, which Booth termed a “significant early mover advantage” ahead of statewide adult-use sales beginning.
“Our partnership with PBR has seen us launch our Wreck Relief brand, which is now starting to generate online sales, and our Provisions and LOOS brands continue to do very well in California, in part through our partnership with EAZE, the world's largest legal cannabis delivery company,” Booth added.
The company also narrowed its net loss to $4.32 million compared to the same period last year, when it reported a $5.06 million loss.
Gross margins also grew 49% over the subsequent quarter, according to the company.
As for the coming months, Audacious said it anticipates entering new jurisdictions, including New York and New Jersey, as well as further expand its product line portfolio.
Additionally, the company said it will be pursuing several initiatives to increase production volume.
Audacious said it is following “rigorous financial discipline” and anticipates reducing certain operating expenses in the coming months.
“Additionally, following conversations with the regulators in Nevada, the company is confident the license transfers relating to the GT acquisition will be completed shortly, following which the company can consolidate the GT results, further boosting growth,” the company said.
The firm ended the period with C$657,000 in cash.
Contact Angela at angela@proactiveinvestors.com
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