Colorado-based General Cannabis Corp (CANN), announced its highest quarterly revenue results for the fourth quarter ending December 31, 2017, and paid down its long-term debt.
The company delivered approximately $990,000 in revenues for an increase of 27% over last year’s fourth quarter. Annual revenues increased 15% to $3.5 million versus last year’s $2.9 million. The company did not report whether it had a profit or loss for the quarter or the year. There was no formal filing for the earnings, only a press release.
General Cannabis is the parent company for three underlying companies. Next Big Crop is a consulting firm, Iron Protection provides security services and Chiefton is cannabis clothing and graphic design.
Iron Protection Group experienced decreases in revenue due to the drop in wholesale prices in Colorado. Revenues fell 11% for the quarter and 16% annually. The company acquired Mile High Protection Services in August 2017 to reduce its dependence on the cannabis industry. This company segment received a license to operate in California and hopes to see growth from this market in 2018.
Next Big Crop consulting was the most successful of the three companies with revenues increasing 323% for the quarter and 193% annually, although no sales figures were given in the press release.
Chiefton was reported to have a 95% increase in revenue for the quarter and a 26% increase for the year. The company said that it had added a new managing director in August 2017 to focus on its apparel business, which positively impacted revenues for both apparel sales and design revenue.
Elimination Of Debt
General Cannabis said in the press release that it had paid down all of its existing long-term debt. The statement read, “In addition to raising $4 million through a capital raise in 2017, we have received an additional $3.5 million in funds through the exercise of warrants and stock options in 2018. We used a portion of these funds to pay off the remaining $1,621,250 due under our 12% Notes in January 2018, and to pay off the $1,370,000 due under the Infinity Note in February 2018.”
“Our continued growth in revenue is a reflection of our ability to pursue opportunities from the expanded legalization of medical and recreational cannabis in numerous states,” said Robert Frichtel, Chief Executive Officer of General Cannabis. “We also have achieved a significant milestone in the Company’s history, paying down our long-term debt.”
“We are now well positioned to continue our growth,” Frichtel added, “and focus on achieving profitability within each of our operating divisions.”