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THC Biomed Intl Ltd C.THC

Alternate Symbol(s):  THCBF

THC Biomed Intl Ltd. is a Canada-based cannabis producer. The Company’s principal business is the production and sale of cannabis through THC BioMed Ltd., which is a small batch Licensed Producer as regulated by the Cannabis Act which regulates the production, distribution, and possession of cannabis for both medical and adult recreational access in Canada. The Company’s biological assets consist of cannabis plants (mother plants and clones for growth); resin; oil; harvested marijuana flowers prior to completion of the drying, grading and testing processes; and edible concentrate. The Company operates in a single reportable segment being the cultivation and sale of cannabis. Its subsidiaries include THC BioMed Ltd., Clone Shipper Ltd., THC BioMed Victoria Falls Ltd., THC2GO Dispensaries Ltd. (THC2GO), and THC BioMed Lesotho Ltd. (THC Lesotho). Clone Shipper Ltd. owns all rights to the Clone Shipper product used to transport live plants.


CSE:THC - Post by User

Bullboard Posts
Post by Greencashon Jan 21, 2020 6:34am
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Post# 30576654

THC BioMed Intl Ltd. Turns a Profit as Revenue Breaks $1 Mil

THC BioMed Intl Ltd. Turns a Profit as Revenue Breaks $1 Mil

THC BioMed Intl Ltd. Turns a Profit as Revenue Breaks $1 Million

 
 

 Ash Stringer

 January 14th, 2020

 Uncategorized


Canada’s cannabis sector has experienced a sharp sell-off over the past year, with the Marijuana Index’s Canadian Index moving from a high of $727 in March to a low of $196 in November. Rather than looking solely at growth in production capacity, many investors are shifting their focus to tangible revenue growth and profitability. Profitable licensed producers can be more selective in raising capital — limiting dilution — and generate tangible shareholder value — in the form of retained earnings.

THC BioMed Intl Ltd. (CSE: THC) (OTXQX: THCBF) (“THC BioMed”) is one of the few licensed producers that has managed to turn a profit as it broke $1 million in revenue last quarter. In addition to ramping up output, the British Columbia-based grower cited its premium cannabis and reasonable prices for helping it become a bestseller among consumers. Management’s long experience in the space — moving from Exemption 56 to ACMPR license to the Cannabis Act — has taught them how to grow great medical & recreational cannabis with unparalleled compliance.

In this article, we will take a closer look at THC BioMed’s strong quarterly performance and what catalysts investors can look forward to ahead.

Click Here To Sign Up for Company Updates and to Receive THC BioMed’s Investor Presentation

Robust Growth & Profitability

THC BioMed reported revenue that rose about 275% year-over-year to $1,044,510, during the quarter ended October 31, 2019, with an average selling price of $4.20 per gram to medical patients and recreational buyers, such as the Ontario Cannabis Store and BC Cannabis Stores. These prices are much less than the $5.00 or more reported by other licensed producers, according to data from Cannabis Benchmarks. Lower production costs could enable the company to capture market share right now, as well as provide a buffer if cannabis prices continue to fall.

Average Cost of Production for LPs – Source: Cannabis Benchmarks

On the bottom line, the company’s adjusted EBITDA swung from a loss of $345,754 to a gain of $890 after accounting for changes in the fair value of cannabis inventory, share-based compensation and other non-operational factors. Many cannabis investors are seeking out companies with profitable operations since they can be more selective when raising capital, which potentially translates to less dilution for existing shareholders and easier access to capital required to grow the business over the long-term.

On the balance sheet, the company reported $6,301,916 in total assets versus $4,188,603 in total liabilities, yielding $2,113,313 in shareholders’ equity. Many licensed producers have struggled under debt hangovers after ramping up production capacity over the past couple of years. As the market matures, companies with less debt have less of a drain on cash flow and more flexibility when it comes to capitalizing on any new opportunities that may arise. Positive net asset levels could also provide shareholders with a buffer in their valuations.

Many Irons in the Fire

THC BioMed has prudently grown its business over the past several years, but that doesn’t mean that it’s not pursuing high-growth opportunities. Last quarter, the company amended its license to include the production and sale of cannabis edibles, topicals and extracts and submitted a new product application to Health Canada for Pure Cannabis Sticks — pre-rolls that are filtered, paper cylinders filled with pure cannabis to be manufactured using its automated production machine — dramatically lowering labor costs.

In addition, the company announced an alternative, brand new cannabis beverage product, THC Kiss, and submitted a new product application to Health Canada shortly after the quarter ended. Zion Market Research projects that the global market for cannabis beverages hit $1.6 billion in 2018 and could reach $4.46 billion by 2025, representing a 15.6% compound annual growth rate. The market is growing so quickly that many traditional beverage companies, such as Constellation Brands Inc. (STZ), have made significant investments into cannabis.

Finally, the company acquired an additional strata lot at its production facility to increase grow capacity. Management’s unique approach to growing cannabis also ensures the highest-quality products reach consumers — from selecting only the best feminized seeds to hand-trimming at the perfect time and placing product on drying racks to dry and cure over an extended period of time. The combination of low-cost production methods and experience growing premium cannabis creates an easy bestseller.

Looking Ahead

THC BioMed Intl Ltd. (CSE: THC) is one of the few licensed producers that have achieved profitability on the bottom line. As the market shifts their portfolios from growth to value, investors may want to keep an eye on the company that has prudent financial discipline and plenty of potential catalysts ahead. It’s long track record shows that management has been able to balance these objectives and deliver shareholder value with an eye for creating low-cost, high-value products for consumers.

To Learn more about THC BioMed (CSE: THC) (OTCQX: THCBF) visit the Company’s Website: https://thcbiomed.com

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

 

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

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