Jushi Holdings Inc. (OTCQB: JUSHF) reported that its total revenue increased 73% sequentially to $14.9 million for the second quarter of 2020. The company said in a statement that its annualized revenue run-rate for July 2020 was approximately $89 million, an approximate 80% increase over the March annualized run rate.
Jushi reported a net loss of $9.3 million, or $0.10 per diluted share, compared to a net loss of $15.9 million, or $0.17 per diluted share, in the first quarter. The $6.6 million drop in the net loss in the second quarter was attributed to both higher revenue and gross profits. In addition, the Company recorded a $2.3 million gain on investments and financial assets as a result of improved market conditions, as well as an offsetting $3.7 million fair value loss on derivative warrants issued in connection with the debt offering that was announced in December 2019 and June 2020. Gross profits increased by 80% sequentially to $7.5 million.
“We’re thrilled with the ongoing performance of our operations in Pennsylvania and Illinois, which drove our strong sequential quarterly revenue growth of 73%,” said Jim Cacioppo, Chairman and Chief Executive Officer of Jushi. “As we move into the second half of the year, we’re focused on maintaining this momentum by continuing to build depth in the markets where we operate today, while thoughtfully driving operational improvements across our footprint. With the recent closing of our Pennsylvania grower-processor permit holder acquisition, we are looking forward to supplying our BEYOND/HELLO stores, along with other licensed retailers in the Commonwealth, with high-quality and competitively priced cannabis products, including our award-winning brands ‘The Lab’ and ‘The Bank’. Moreover, with ten BEYOND/HELLO dispensaries now open, and several stores under development, we remain well-positioned to continue exceed patient needs as well as drive value for our shareholders.”
The company attributed the increase in revenue to Jushi’s acquisition of two medical marijuana dispensaries in Illinois, one of which began serving adult-use customers in March and the other in May. There was also strong organic revenue growth at the BEYOND/HELLO stores in Pennsylvania, and successful procurement of product in these two supply-constrained markets.
The company said that it has $50.8 million of cash and securities on the balance sheet as of June 30, 2020 and filed an offering for C$200 million subscription receipts, debt securities, convertible securities, warrants, subordinate voting shares, and units, or any combination thereof, from time to time during the 25-month period that the Shelf Prospectus is effective.