ABcann Global Corporation (ABCCF) reported net sales of C$922,030 in 2017 versus C$525,940 in 2016. The annual report or business update did not provide much in the way of standard financial reporting with regards to profits or losses.
The company did report that bulk sales to other Licensed Producers represented approximately 21% of its sales by dollar value versus 65% in 2016. In the filing, the company stated that the remaining 79% of sales by dollar value was made to clients and that the reliance on bulk sales in 2016 was to accelerate revenue and, as expected, declined substantially in 2017 as ABcann’s client base continued to grow. Patient count and sales grew steadily throughout the year and show no signs of seasonality.
ABcann’s 2017 audited annual financial statements showed a cash balance on December 31, 2017, of $70.8 million and operating expenses totaling C$27.5 million. The report stated, “These expenses included very substantial one-time costs related to taking ABcann public and internal restructuring matters. While the restructuring continued into Q1 of 2018, the impact of these costs is expected to have a far lesser impact on the Company’s financial statements for that period.”
“Over the past two quarters, we have enhanced our leadership team, strengthened our balance sheet, improved operational effectiveness, and made significant commercial advancements. ABcann is well-positioned, with approximately $130 million in cash, to accelerate the growth of our business,” commented Barry Fishman, Chief Executive Officer of ABcann.
In The Pipeline
ABcann said that its 2018 capacity would be 800 kilograms of indoor grown premium dry flower and 1,500 kilograms of seasonal greenhouse cannabis. The 2019 capacity is expected to be 1,500 kilograms of indoor grown premium bud and 14,000 kilograms of seasonal greenhouse cannabis to be used primarily in finished medical and adult-use products
The company’s Vanluven expansion which is targeted for the third quarter includes state-of-the-art areas for cultivation, extraction, formulation, and packaging. ABcann is expecting to receive GMP certification in late Q4 2018 or early Q1 2019, facilitating the export of products to certain international markets.
The company also plans a rebranding which is planned for mid-year 2018 and the introduction of new consumer brands. Harvest Medicine to open a second clinic in Edmonton in early Q3 2018 and Harvest Medicine is to launch a telemedicine platform in Q3 2018 to provide access to patients seeking medical cannabis in underserved communities.
The stock was lately trading at $1.18 on the OTC Markets, down from its 52-week high of $3.29. It traded at C$1.50 on the Toronto Exchange, down from its year high of C$4.06.