Slang Worldwide Inc. (OTCQB: SLGWF) reported preliminary, unaudited financial results for the third quarter ending September 30, 2020. with revenue rising 73% to $7.9 million. The company said that the primary driver of sequential growth was a rebound in demand in its core markets of Colorado and Oregon, following the COVID-related shutdowns in the second quarter. Similar strength in the company’s emerging markets also contributed to sequential growth, as did the successful launch of new products.
“I am proud of the way our company has responded to the pressures we faced in the first half of the year,” said SLANG President & CEO Chris Driessen. “In the third quarter, we capitalized on rapidly evolving market conditions while also reducing costs, leading to significant improvements in both revenue and EBITDA. I am particularly pleased with how we are tracking in regards to profitability and expect even greater momentum to build in subsequent quarters as our acquisitions close and we begin to recognize both revenue and profit from plant-touching operations.”
Slang also noted that its adjusted EBITDA of $57,000 was positive for the first time since it became a public company and represented an improvement over a loss of $1.6 million in the third quarter of 2019 and a loss of $1.8 million in the second quarter. Cost reductions from streamlining activities at Slang and within the Slang Network have resulted in approximately $10.5 million of annualized cost savings. The company said it expects to file complete financial results for the third quarter of 2020 on the morning of November 30, 2020.
In October, Slang announced a strategic partnership to introduce its branded products in California with Natura. Natura was given an exclusive license to produce and distribute the Slang product suite in California, including its category-leading brands O.penVAPE, Firefly, Pressies, District Edibles, and Bakked. Slang will also provide sales consulting services and will receive royalty payments for each branded product sold in the state.
“California presents the perfect opportunity for us to lean into our emerging markets model. By partnering with a best-in-class operator like Natura, we are confident that we will be positioned for long-term growth and success within the Golden State,” said Driessen. “Our brand District Edibles was at one point the top-selling gummy product in California and represented nearly $2 million dollars per month in retail revenue at its peak. We expect to achieve similar success across all SLANG brands as a result of this new partnership.”
Also in October, Slang launched a new concentrate product called the Gyro. It’s the latest addition to the Bakked product line and is billed as the first spill-proof, gyroscopic container for live resin concentrates used for dabbing. “The Gyro innovates the way that cannabis consumers who prefer to dab transport their extracts. Because the Gyro is always right side up, dabbers never have to worry about spilling their costly extracts. The Gyro is designed to withstand shaking, tossing and even dropping, all without any spills.”
“The Gyro makes dabbing simpler and more convenient so that our customers can enjoy their dabbing experience,” said Driessen. “Full credit goes to the SLANG product team for once again developing an innovative product that is truly unique in the cannabis CPG space. The Gyro marks our third product in the hydrocarbon extract space, with more on the way.”