Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Jelena Martinovic

Heritage Cannabis' Revenue Increases 450% YoY In Q4, Provides Financial Results For 2021

Heritage Cannabis Holdings Corp. (CSE:CANN) (OTCQX:HERTF) announced its financial results for the fourth quarter and for the twelve months ended October 31, 2021.

“Heritage’s revenue grew over 100% for the year and almost 40% from Q3/21 to Q4/21, which was the higher end of the previously provided guidance, “ David Schwede, the company’s CEO, said. “We are building a strong and sustainable business in a nascent industry, and with our solid business practices and product and brand innovations, we are focused on positive cash flow as a priority.”

Q4 2021 Financial, Operational & Corporate Highlights

  • Gross revenue totaled CA$7.13 million ($5.5 million), representing an increase of over 450% year-over-year.
  • The cost of sales amounted to CA$7.32 million, compared to $22,943 for the three months ended October 31, 2020.
  • Comprehensive loss of CA$42.7 million or CA$0.06 loss per share compared to a comprehensive loss of CA$4,74 million and CA$0.01 loss per share for the corresponding quarter of 2020.
  • Vape products have been a key driver in recent sales growth initiatives, with sales hitting consecutive records in 2021.
  • In September 2021, Heritage launched a private label program that pairs leading cannabis brands with Heritage’s extraction expertise.
  • Announced changes to its board of directors and appointment of a new CEO. Donald Ziraldo resigned from the board and his position as chair for personal reasons and to pursue other business initiatives.
  • Entered into a three-year exclusive intellectual property licensing and royalty agreement with Avicanna Inc. (TSX:AVCN) (OTCQX:AVCNF) (FSE: 0NN).
  • Entered into a joint venture sales and processing agreement with Noble Growth Corp.
  • Excuted a term sheet with Merida Capital Partners IV LP and its affiliates for up to $1.5 million in senior unsecured convertible promissory notes to fund the company’s entry into the state of Missouri.

2021 Financial Highlights

  • Gross revenue of CA$18.7 million, representing a year-over-year increase of 100%.
  • Cost of sales totaled CA$13.5 million, compared to CA$6.6 million for the year ended October 31, 2020.
  • Comprehensive loss of CA$57.7 million or CA$0.08 loss per share compared to a comprehensive loss of CA$8.6 million or CA$0.02 per share for the year ended October 31, 2020.
  • Increased its total assets by CA$14.35 million year-over-year to CA$97.8 million.

Photo: Courtesy of Dmitry Demidko on Unsplash

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.