MJardin Group, Inc. (CSE: MJAR) (OTCQX: MJARF) reported revenue of $4.8 for its third-quarter ending September 30, 2020. This was lower than the $7.6 million in revenue that the company delivered in the 2019 third quarter. The net income for the quarter was $7.2 million All amounts are expressed in Canadian dollars unless otherwise indicated.
The company noted that its operating expenses were $6.7 million the quarter leading to a loss on operations of $4.2 million. This was higher than the $3.6 million in operational losses for the 2019 third quarter. The general and administrative expenses of $3.7 million were higher than last year’s $3.0 million for the same period and mostly due to increased professional services expenses in Q3 2020. MJardin said it has been able to grow a new fifth strain testing at 24% THC on behalf of Robes at its WILL facility and that all harvests out of the WILL and GRO facilities have passed HC microbial testing without the use of irradiation treatment.
MJardin said it plans on delivering the following in the fourth-quarter:
- complete run-rate production at the WILL facility;
- retail sales of cannabis produced at Canadian facilities; and
- full licensing of the AMI facility’s Phase II expansion.
The company said it plans to continue to increase the production from its Canadian assets and intends to continue doing so for the balance of the year. At the same time, the company said it plans to continue focusing on securing offtake for production via either firm commitments with retailers or supply agreements with leading license holders.
Last month, MJardin entered into a master service agreement with the OCS. This agreement immediately enables MJardin to make its product available to retail consumers in Ontario. It is an important step in MJardin’s evolution from a pure-play cultivator to a consumer-centric company, servicing the needs of retail consumers, in-line with the Company’s 2020 strategic plan. As a result, the company said it expects increased revenues from the same flower production, given the higher realized price per gram at the retail sales level, and expects to gain market recognition and consumer brand awareness from products sold under the Flint and Embers banner. The company said it anticipates its first sale to the OCS will occur in the fourth quarter of 2020.