Delta 9 Cannabis reports 1Q revenue of C$13.2M; CEO calls 2021 a "promising year"

Delta 9 Cannabis Inc (TSE:DN) (OTCQX:DLTNF) posted its financial results for the three-month period ending March 31, reporting net revenue that grew 11% year-over-year.

For the first quarter, net revenue was C$13.2 million, compared to C$11.8 million in the same period of 2020. Net income decreased by C$6.1 million year-over-year to a loss of C$3.2 million.

“In the first quarter of 2021 we have seen a degree of seasonality and industry headwinds relating to COVID lockdowns and overall weakness in the Canadian cannabis market affecting our business and impacting sequential revenue growth; however, we remain bullish that the remainder of 2021 looks to be a promising year for Delta 9,” CEO John Arbuthnot.

READ: Delta 9 Cannabis expects 1Q revenue of C$12.9M to $13.3M on higher retail sales

During the quarter, Delta 9 opened three cannabis retail stores, bringing its total to 12, including 9 in Manitoba, 2 in Alberta and 1 in Saskatchewan. The company plans to have up to 20 Delta 9 Cannabis retail stores operating this year. 

The company also completed its final services milestone this quarter under agreements with several micro cultivation partners: Dry Island, F1ne Cannabis Cultivation and Fourth Generation Cannabis, the company said.  These micro cultivation partners entered into a strategic cooperation agreement under which Delta 9 provided services relating to cannabis production facility design and construction, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing and more.

“Delta 9 continues to grow its three main business units by adding additional retail stores across central Canada, adding new micro cultivation partners with strategic cooperation agreements that provide for a variety of services, expanding our B2B business into the US market place and continuing to increase distribution of wholesale cannabis products across our provincial markets,” Arbuthnot said.

Delta 9 also began trading on the OTCQX Best Market under the new ticker “DLTNF” during the quarter on March 16. The company changed its symbol from “VRNDF” to align its US trading symbol with its corporate name.

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Story by ProactiveInvestors