Cannabis company 1933 Industries Inc. (OTC: TGIFF) reported third-quarter results Tuesday that included a 28% quarter-over-quarter jump in revenue to CA$4.6 million ($3.5 million).
The company's gross margin fell from 43.7% in the third quarter of 2018 to 24.8%. The company attributed much of the drop to its increased buying of biomass from a third-party source, the Alternative Medicine Association.
1933 Industries posted a loss of CA$7.2 million for the quarter ending April 30. The losses were attributed to building out the company's infrastructure and brand development investments.
Why It Matters
1933 Industries is pleased overall with its growth compared to the second quarter of 2019, CEO Chris Rebentisch said in a statement.
"Since becoming a publicly listed issuer two years ago, we have focused on building one of the most valuable and respected CBD brands in the market and in successfully growing THC market share in Nevada.”
The company has spent "significantly" to expand its infrastructure in support of future growth, as well as to support product development, inventory buildout and sales and marketing, he said.
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Rebentisch said the company's focus areas going forward are growing its consumer packaged goods portfolio and continued innovation.
1933 Industries also plans to invest in a hemp extraction facility while also automating its manufacturing process; moves into strategic markets are also on the agenda.
The stock was down 12.39% at 31 cents at the time of publication Tuesday.
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