Cannabis sales in Nevada, California and Colorado are driving the company's growth
1933 Industries Inc (CSE:TGIF) (OTCMKTS:TGIFF) saw its sales soar in its fiscal first quarter on the back of robust demand for cannabis products across Nevada, California and Colorado.
In the three months until the close of October, the cannabis company clocked in with revenue of C$4.62 million, up from C$2.46 million in the corresponding period a year ago.
Its gross profit also jumped over the same period to $1.93 million from $1.162 million. Its current assets climbed as well to $23.76 million from $13.4 million in the previous quarter
“We are pleased to report another strong quarter of steady growth from our subsidiary companies,” said CEO Brayden Sutton in a statement.
“Increased demand for our cannabis products in the states of Nevada, California, and Colorado are continuing to fuel this growth, while we focus on expanding wholesale capacity for our THC line of products and increasing sales of our CBD products across the US,” Sutton added.
READ: Cannabis company 1933 Industries uplists to the OTCQX in the US
1933, which operates in the US and Canada, owns licensed medical and recreational cannabis cultivation and production assets. It controls three subsidiaries, with 91% ownership of both Alternative Medicine Association and Infused MFG and all of Spire Global Strategy.
In the quarter, Alternative Medicine Association reported sales revenue of $2.26 million while Infused MFG posted sales of $2.278 million. Lastly, Spire Global Strategy posted consulting revenue of $81,905.
On 1933’s list of advances for its latest quarter was its launch of Canna Fused, a CBD/THC-infused product line making its debut in Denver in partnership with Denver Dab Company (DDC).
READ: 1933 Industries stokes Las Vegas capacity expansion in anticipation of medical and recreational cannabis product demand
The company also announced that its subsidiary Spire Global Strategy has been awarded a contract to develop a cannabis regulatory compliance course at Selkirk College, a post-secondary institution in British Columbia.
In another quarterly development, 1933 raised gross proceeds of $17.25 million after closing an offering of convertible debenture units.
1933’s net loss for the quarter came in at $3.04 million, or $0.01 per share, compared with a loss of $570,695, or $0.06 per share, in the year-ago period.
1933 shares finished up 2.8% to close at C$0.37 in Canadian trading on Thursday.
Contact Ellen Kelleher at [email protected]