Ayurcann Holdings Corp. reported record sales in its second fiscal quarter as the company tries to reduce its losses following a cancelled merger last November.
Canadian cannabis manufacturers reported C$13.4m in gross sales for the 3 months ending Dec. 31. This is a 25 percent increase from the same time period last year.
Even so, the net loss was C$121.718. This is an improvement on the C$772,616 that the company reported for the same period last year.
This Ontario firm showed some progress towards profitability with a gross margin of 43% and an adjusted EBITDA positive C$356,828.
In a press release, the company stated that “Ayurcann’s Q2 Results reflect the strategic implementation of our growth plans and solidify our positions as market leaders in the Canadian Cannabis space.”
According to data provided by cannabis analytics company Hifyre IQ, the firm, which focuses primarily on extracting services and branded vape products, holds 6% market share in Canada and 12% market share in Ontario. It is positioned as a “top 3 producer” of vapes (by volume) within Ontario.
Ayurcann has said that it expects to generate more than C$50million in revenue in the fiscal year 2025. This would represent a 300% rise over the last three years. It reported annual revenues of C$11million in fiscal fiscal 2022.
The company has launched over 30 new cannabis products, including vapes and pre-rolls in the last 6 months.
Ayurcann cancelled its business merger with Arogo Capital Acquisition Corp., a company that specializes in special-purpose acquisitions. The results came just a few months later. Arogo failed to comply with Ayurcann’s requirements for stock exchange listings and public filings, so Ayurcann terminated the deal. Green Market Report The time was reported.
According to the financials, working capital for the company improved by C$3.6million at December 31, from a C$2.1million deficit in June.