Vancouver-based cannabis producer 1933 Industries (CSE: TGIF) expects to report revenue of $5.2 million for the three months to July 31, 2019.
The firm issued guidance for its fiscal fourth quarter today and revealed that it expects revenue to increase 13% from the $4.6 million it brought in during the previous three months. It added that it anticipates gross margin to continue to improve during the second half of fiscal 2020.
In May 2019, it raised $10.5 million through the sale of its Las Vegas cultivation facility. The deal includes a leaseback agreement for 10 years, and it can be extended to 2039 if 1933 Industries wishes.
That cash injection means that the company expects to report a cash balance of $18.6 million as of July 31, 2019, an increase of $3.9 million from the previous quarter end. It expects full-year revenue for fiscal 2019 to total $18 million, which would be an increase of 42.9% on the previous year,
Chief executive Chris Rebentisch is confident that the company is well placed to deliver solid growth in the year ahead. “We have a robust cash position, which will be utilized to complete our large infrastructure projects, ramp up cultivation and manufacturing production in California and open new markets with an immediate focus in Arizona,” he said.
1933 Industries is named after the year that the Prohibition on alcohol came to an end in the U.S. It has operations in Canada and the U.S. and last month it expanded out of Nevada and into California.
It will follow a vertically integrated turnkey model there, working with license holder Green Spectrum Trading, and Arizona is the next target.
It is also building out a specialist hemp extraction facility with a maximum monthly throughput of 68,000 kg of hemp biomass in Nevada, and it has teamed up with skateboarding legend Tony Hawk to develop a line of CBD wellness products, to go along with its existing suite of THC and CBD packaged products.
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