Grapefruit USA, Inc. Reports 677% Revenue Growth Year-Over-Year; 48% Revenue Growth QuarterOver-Quarter, Margins Expand; CEO Recaps Overall Incredible Quarter
LOS ANGELES, CA and DESERT HOT SPRINGS, CA / ACCESSWIRE / November 16, 2020 / Grapefruit USA, Inc., ("GPFT", "Grapefruit" or the "Company") (OTCQB:GPFT) a California based cannabis product manufacturing and distribution Company is announcing today that its quarterly report on Form 10-Q for the nine months ended September 30, 2020 reported net revenues of $2,580,412 for the nine months ending September 30, 2020, an increase of $2,248,371 or 677% over revenues of $332,041 for the nine months ending September 30, 2019. For the three-months ending September 30, 2020, the Company reported net revenues of $1,306,201, an increase of $425,549 or 48% over the previous quarter ended June 30, 2020. This marked the third consecutive quarter that the Company reported significant revenue growth. For a full analysis of the Company's results of operations see the Company's Form 10-Q.
With respect to Grapefruit's 2020 third quarter results, Bradley J. Yourist, Grapefruit CEO, commented, "In defiance of the chaos visited upon us all as a result of the worldwide pandemic throughout the first, second and third quarters, Grapefruit was able to increase its revenues by 677% over our previous year, and 48% over our previous quarter. We also witnessed a marked increase in our margins quarter-over-quarter as our costs of sales decreased and customer base expanded. Our performance for the first forty-five days of the fourth quarter strongly indicates that this healthy trend will continue for the foreseeable future.
The financial results reported above, while very significant, do not, standing alone, adequately illustrate the advances Grapefruit has made over the summer. Despite many financial and logistical issues engendered by the worldwide pandemic and economic downturn, we have thrived and continued our momentum as evidenced by our third consecutive quarter of revenue expansion. However, these financial reports do not begin to fully chronicle the successes of Grapefruit's third quarter.
In the first place, in late June our Registration Statement on Form S-1 was declared effective by the SEC. This step was significant as we became one of only a handful of USA-based, state licensed cannabis companies, that "touches the plant" to successfully register a class of securities with the SEC. This step also allowed us to complete the third one-million dollar tranche of our financing arrangement with our one institutional investor. Effectiveness of our Registration Statement also allowed us to uplist from OTCPink to the OTCQB market which we achieved on July 14, 2020. As a result, we are one of only two USA-based, state licensed cannabis companies which "touches the plant" that are traded on the OTCQB or higher markets. Currently, no USA-based cannabis companies which "touch the plant" have been cleared for listing on the New York Stock Exchange or NASDAQ. We believe that our OTCQB listing will, in the fullness of time, have a positive effect on our stock performance by broadening the class of investors who may purchase our common stock. Furthermore, we believe that our OTCQB status will serve us well if and when the United States legalizes recreational and medicinal cannabis use which both the United States House of Representatives and the new Biden administration have signaled they will do soon.
Secondly, in mid-July, we sold out our third consecutive contracted harvest of premium-quality indoor exotic cannabis flowers. Our revenue results reflect this fact and we are confident that we will be able to significantly grow our distribution business from this strong foundation.
Thirdly, and possibly most importantly, we have made remarkable progress with our novel and disruptive Hourglass by Grapefruit™ THC + Cannabinoid delivery cream. On July 27, 2020, we signed our game changing exclusive licensing agreement with Zylö Therapeutics, Inc. ("Zylö") covering Zylö's patented Xerogel Silica Gel which is the engine of Grapefruit's Hourglass™ THC+Cannabinoid delivery cream. Since that time, Grapefruit's Hourglass team has worked intensively with Zylö's team to perfect the manufacture of Hourglass™ and thoroughly tested it to maximize the effectiveness and purity of the Hourglass cream. Sales of Hourglass will commence in the fourth quarter. We believe Hourglass™ will fundamentally alter and improve the manner in which humans interact with Cannabis and CBD products.
Finally, in late September Grapefruit received the final tranche of its financing from its sole institutional investor. We believe this capital allows us to achieve our goals with respect to our distribution business and Hourglass™ into 2021.
Going forward, we will continue to remain hyper-focused on revenue growth in our distribution and manufacturing businesses and commencing public sales of our disruptive Hourglass by Grapefruitä THC + CBD delivery cream before the end of 2020. We believe 2021 will be our break-out year to achieve our goals and gain recognition as a leading US based technology driven fully integrated cannabis company."
To learn more about Grapefruit's Hourglass THC + CBD time release cream delivery system please visit our website at:
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Grapefruit's corporate headquarters is located in Westwood, Los Angeles, California. Grapefruit holds California permits and licenses to both manufacture and distribute cannabis products in the Golden State. Grapefruit's extraction laboratory and manufacturing and distribution facilities are located in the industry recognized Coachillin' Industrial Cultivation and Ancillary Canna-Business Park in Desert Hot Springs, located on the extension of North Canyon Rd., approximately 14 miles north of downtown Palm Springs. To obtain further information on Grapefruit and its operations, please visit its website at https://grapefruitblvd.com/. To learn more about Grapefruit's Sugar Stoned branded line of cannabis and CBD infused edibles, please visit us at https://sugarstoned.com/.
Safe Harbor Statement
Grapefruit cautions you that any statement included in this press release that is not a description of historical facts is a forward-looking statement. Many of these forward-looking statements contain the words "anticipate," "believe," "estimate," "may" "intend," "expect" and similar expressions. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the company and are subject to a number of risks and uncertainties inherent in Grapefruit's business, including, without limitation: the company may not ever obtain additional funds necessary to support its business development and growth plans; and the company may not ever achieve the market success to reach or sustain a profitable business. In addition, there are risks and uncertainties related to economic recession or terrorist actions, competition from much larger cannabis companies, unexpected costs and delays, potential product liability claims, and many other factors. More detailed information about Grapefruit and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K, its Quarterly Report on Form 10-Q for the period ended September 30, 2020 and its Registration Statement on Form S-1/A. Such documents may be read free of charge on the SEC's website at www.sec.gov. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Grapefruit undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
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