Icanic Brands Posts Record Revenue As It Absorbs LEEF, Sheds Debt

The company also announced the appointment of a new CEO, Micah Anderson, in conjunction with the resignation of Brandon Kou.

Icanic Brands (CSE: ICAN) (OTCQB: ICNAF) posted mixed results as the company touted record revenues for the quarter while racking up $15 million in losses.

The California-based cannabis company released its financial results for the quarter ended June 30.

Total revenue for the second quarter was $8.12 million, a 26.5% rise from the same quarter in the previous year. Net loss for the quarter totaled $15 million, according to SEDAR filings.

“The results are in-line with our expectations as we experienced a significant increase in revenue due to the acquisition of LEEF, but also incurred several one-time transaction-related costs,” said newly minted CEO Micah Anderson, who was tapped to head the company after Brandon Kou resigned yesterday.

The company restructured its existing debts in June from $14.5 million to $10.9 million after closing the LEEF acquisition, saving $110,000 in interest annually.

Gross profit was $2.68 million for the second quarter, a 13.8% gain versus the same period in 2021. The company said that this rise was a direct result of the company’s supply chain management, increased manufacturing efficiencies and greater diversification into CPG-branded products.

The company posted an adjusted EBITDA loss of $31.8 million for the second quarter.

“Despite a challenging macro environment, we have been able to drive revenue growth and management costs that are propelling us towards profitability,” Anderson said. “We are seeing month-over-month evidence of the substantial growth prospects of our business.”

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.

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