CBD oil maker cbdMD Inc (NYSE: YCBD) reported third-quarter net sales of more than $8 million on Wednesday — a 42% quarter-over-quarter increase.
The company lost $8.26 million in the quarter and attributed $2.1 million of that loss to a non-cash impairment charge of intangible assets tied to its prior licensing and brand management businesses.
On May 1, Level Brands Inc. changed its name and New York Stock Exchange ticker symbol from "LEVB" to its current listing, becoming the first company in the CBD space to list on the U.S. stock exchange.
Another $2 million in losses were chalked up a non-cash charge related to stock option expenses.
The fully diluted net loss per share in the third quarter amounted to $1.19 per share.
The stock was trading higher by 1.28% to $4.76 in Wednesday's after-hours session.
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.
CbdMD guided to net sales of $24 to $26 million in fiscal 2019 and net sales of $80 to $90 million in fiscal 2020.
"We've increased the number of locations cbdMD products are available in by 500% since the acquisition of the brand last December, and with the building momentum of retailer acceptance subsequent to the passage of the Farm Bill, we are pursuing every opportunity available to us vigorously as we continue to work to build cbdMD into the top recognized brand in the industry," cbdMD Chairman and co-CEO Martin Sumichrast said in a statement.
The company's e-commerce platform generated 60% of its net sales, according to cbdMD. The CBD products have placement in more than 3,000 "doors," up from about 600 in December 2018, cbdMD said.
CbdMD had $11.6 million in cash on hand as of June 30, the company said.
Ex-NFL Player Steve Smith Sr. Calls Partnership With CbdMD 'A Family Affair'
Bubba Watson, left, Caryn Dunayer, Marty Sumichrast, Todd Justice and Quinton "Rampage" Jackson. Photo courtesy of cbdMD.
See more from Benzinga
- Tilray Posts Wider-Than-Expected Q2 Loss, Revenue Beat
- Uber Falls On Wider-Than-Expected Q2 Loss Per Share
- Lyft Surges On Q2 EPS, Revenue Beat
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.