MJardin Group, Inc. (OTCQX: MJARF) reported first-quarter revenue dropped to $2.2 million versus last year’s revenue of $10.7 million for the same time period in 2019. The company also delivered a net loss of $8.1 million, which was lower than last year’s first-quarter loss of $14.8 million (all figures in Canadian dollars).
”During the first quarter we remained focused on the completion of our cultivation assets as we continue to push aggressively towards being prepared to penetrate the Canadian recreational market with our products, and ramping up revenues starting in the second half of 2020,” commented Pat Witcher, CEO of MJardin. “I am very encouraged with the progress our team is making with bringing our assets online as well as exploring strategic growth opportunities which could start contributing to our profitability in the foreseeable future.”
MJardin said that its Managed Services business generated $2.2 million in revenue during the quarter. The Canadian cultivation facilities were currently mid-way through the growing cycle and so no revenue was recognized at these facilities during the first quarter. The company did say that it was in advanced negotiations for a supply agreement with a major Canadian License Holder to sell approximately an incremental 2,000 kilograms of product.
While the gross margins fell to $0.4 million versus $4.1 million for the prior year comparable period, expenses dropped by 43%. MJardin said it would continue to look for more ways to cut costs.
The company said it has the following plans for 2020 and that they are on track:
- Complete run-rate production at WILL and GRO facilities by the end of the third quarter
- Retail sales of Canadian production by the end of the third quarter
- Full licensing of AMI Phase II expansion by during the fourth quarter
- Significant progress on completion of construction at the Warman facility
- Continued pursuit of expansion opportunities in selected US States