Golden Leaf Holdings (
CSE: GLH,
Forum) celebrated today as the company released its preliminary financial results for its calendar Q3 with revenue estimated to represent a 900% year-on-year increase at approximately US$3.0 million.
According to the
news release, the company’s first proprietary flower harvest carried out in October was well beyond expectations with yields appearing to be more than 2 pounds of high grade flower per plant. This abundance is anticipated to add at least US$1.0 million in sales during Q4.
The fourth quarter saw the company operating seven extraction machines compared to the one machine the company started with a year earlier. Each machine has a daily capacity of one pound of oil extract.
The 96 acre Aurora campus has become more efficient, producing consistently higher yields, due to the approximate US$500,000 investment made by Golden Leaf up to October 31, 2015. As a result, the company’s first harvest at Aurora produced approximately 270 plants in October with each plant yielding more than two pounds of flower and two pounds of trim.
Company CEO, Don Robinson, commented, “Demand for our products remains very strong. We have increased our direct sales force to 10 professionals and consolidated our leading position within the Oregon medical market. All of our stock on hand continues to sell quickly. Despite the 8 to 1 scaling in production capacity, demand for our product continues to outstrip capacity. We expect this dynamic to continue having substantially increased our sales force.”
The release went on to note that Golden Leaf continued to look for strategic acquisition opportunities and commercial relationships. Robinson illustrated, “We have started due diligence on acquisitions in Washington State. The market for oil extract products in Washington is double the size of Oregon. Washington allows oil extract products and edibles to be sold recreationally.”
The company expects the Dixie transaction announced earlier this month to further facilitate its entry into the US$600 million Oregon market with proven technology, expertise and Colorado’s top edible brand.
Golden Leaf Holdings made headlines recently when the
Toronto-based company announced less than a week ago that it was preparing to list on QTCQB Exchange.
Shares were up 11.70% on the news to $1.05 per share.
Currently there are 61.2m outstanding shares with a market cap of $64.3 million.
FULL DISCLOSURE: Golden Leaf Holdings is a Stockhouse Publishing client.