Delta 9 Cannabis Inc has provided guidance on its revenue forecast for the three-month and six-month period ending June 30, 2022, expecting solid growth based on preliminary results.
The company said it anticipates revenue for the three-month period ending June 30, 2022, to be between $17.4 million and $18.0 million compared with $12.5 million for the first quarter of 2022 and $16.7 million for the second quarter of 2021.
Delta 9 anticipates revenue for the six-month period ending June 30, 2022, to be between $29.9 million and $30.5 million.
"Sequentially and year over year, Delta 9 anticipates another record quarter with all three business units contributing to the success of the quarter," said John Arbuthnot, Co-founder, and CEO of Delta 9 in a statement. "We remain optimistic that the second half of 2022 will continue to outperform the first half of the year for Delta 9."
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Delta 9 said it will provide investors with a full breakdown of its revenue and financial results as part of the second quarter news release which will be issued on August 15, 2022, after markets close.
This will be followed by a conference call the following day on August 16, 2022. The conference call will be hosted that day at 1.00pm. Eastern Time by John Arbuthnot, the company's chief executive officer, and Jim Lawson, its chief financial officer, followed by a question-and-answer period. Dial in number # 1-888-886-7786. Replay number 1-877-674-6060; replay passcode 599533 #; available until 12.00am Eastern Time, September 15, 2022.
The preliminary estimated revenues for the three-month period ended June 30, 2022, set forth are subject to the completion of the company's financial closing procedures. These preliminary estimated financial results have been prepared by and are the responsibility of the company's management.
The company said it currently expects that its final results for revenue will be consistent with the estimates set forth above, but such estimates are preliminary, and the company's actual results of operations and other data could differ materially from these estimates due to the completion of its financial closing procedures, final adjustments and other developments that may arise between now and the time such consolidated financial statements for the period ended June 30, 2022, are issued.
Convertible debenture cash repayment
In a brief separate statement, Delta 9 Cannabis also announced the completion of the cash repayment of its unsecured 8.5% convertible debentures issued on July 17, 2019, which had a maturity date of July 17, 2022. The $11.8 million cash repayment represents a full payout of the convertible debentures which were previously traded on the Toronto Stock Exchange under the trading symbol DN.DB.
The company said it met the pre-disbursement conditions required to draw down $11.8 million under its credit facility with ConnectFirst Credit Union and concurrently made the cash repayment of the convertible debentures. The company's $11.8 million draw-down from its credit facility is subject to a 60-month repayment term at a fixed rate of 4.55% per annum, amortized over 144 months.
Delta 9 Cannabis 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.
Delta 9'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 also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com