Last week, Aurora was the biggest winner in the cannabis space. It gained nearly 70% in a single session after posting strong financial results for Q3 2020. Today, we’ll be looking at this weeks big winner: Delta 9 Cannabis Inc. (TSX:DN) (OTCQX:VRNDF), which also posted its most recent fiscal earnings.
Rich previously profiled this promising pot stock earlier this year. Now, Co-Founder and CEO John Arbuthnot has returned to discuss how his company has been progressing.
To refresh: Delta 9 Cannabis is a vertically integrated company focused on bringing the highest quality cannabis products to market. The company’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis. It operates an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Delta 9 Reports Record Quarterly Results
According to the company’s Q1 2020 financial earnings, operating revenues came to $11.75 million for the three-month period ending March 31. This is up 109% from $5.63 million for the same quarter in 2019. In addition, adjusted EBITDA was $1.65 million, an improvement from an adjusted EBITDA loss of $1.98 million in Q1 2019.
Thus, with an earnings per share of $0.02, Delta 9 Cannabis has joined the exclusive ranks of “profitable cannabis companies.” This is a major win for the company, especially given the ongoing COVID-19 crisis. Arbuthnot notes that the company remained fully operational through the quarter, and continues to increase its sales to this day.
Also of note from Q1, Delta 9 received approval from Health Canada for its new purpose-built cannabis processing center. This will allow it to fully automate bottling, packaging, capping, and labeling of its consumer-packaged dried cannabis products.
Delta 9 Cannabis Receives Positive Recommendation
The company’s strong results led Canaccord Genuity to raise its price target from $0.60 to $0.75. The firm also ranked DN a Speculative Buy. Discussing the company’s future, analyst Kimberly Hedlin opined:
“We believe a pipeline of Grow Pod projects will continue to boost revenues over the next couple of quarters while retail store growth should provide a conduit for wholesale distribution over the coming 24 months.”
What do you think, is Delta 9 now one of the must-follow pot stocks? Keep watching RichTV for more updates about this and other exciting companies.
Featured image: Unsplash © Martijn Baudoin