Maricann Group Inc. (OTCQB: MRRCF) reported its earnings and yet the company didn’t say anything in the press release about the revenues from the quarter and instead said that “results were consistent with expectations” and revenue was expected to increase in 2018. This is always a big red flag when investors have to hunt and search for the numbers.
Sure enough, revenue fell for the three months ending September 30 to C$721,035 from C$892,081. Gross profits also tumbled to C$225,207 from C$477,490. Net losses soared to C$5,379,931 from last year’s C$1,119,537. Net losses for the last nine months were C$57 million versus last year’s C$2.7 million.
The company’s statement read, “Revenue is expected to increase in the first quarter of 2018 when the Company’s joint pharmacy initiative is expected to launch. Product distribution for this initiative will occur through previously announced exclusive and primary supplier relationships with retail pharmacies.” Marican said it has reserved inventory to be ready for patients when the program begins.
More disturbing is that the company’s statement filed with Sedar said that as of September, it had accumulated a deficit of C$72 million and that the company will need to raise capital in order to fund its operations. So far Maricann has raised C$31 million in convertible debentures.
Maricann Pins Hopes On Germany
Maricann is also pinning its hopes on Germany, but that process has been slowed. In the company statement, Maricann said, “The tender process has been delayed multiple times due to ongoing legal proceedings related to unsuccessful submissions by other applicants in the initial qualifying round. A further delay in the tender process may occur due to ongoing legal proceedings, however, a final decision may be forthcoming as early as March of 2018.” The company said it had also set aside inventory for European markets.
MariPlant GmbH has been registered as a 95% owned subsidiary in Germany. The subsidiary will cultivate approved industrial hemp cultivars and extract CBD to be used in its “Mariplant” products. The company statement read, “It is expected that these CBD products will be distributed through MariPlant’s own online shop in Europe, starting in February of 2018 and it is further anticipated that MariPlant will distribute 25mg CBD metered dose soft gel capsules with VesiSorb delivery technology as its first product offering.”
Outstanding shares ballooned as well to 68 million from last year’s 36 million. Maricann’s shares on the OTC Market were lately trading at $1.87, down from the 52-week high of $2.13.