- Cann Global (CGB) has ended the June quarter with a healthy $7.4 million in the bank after burning through $463,000 on operating costs
- The company also received $333,000 in customer receipts in Q4, an increase of 54.6 per cent compared to the amount received in Q3
- But Cann’s production costs grew by 12.6 per cent in the June quarter, though it did manage to reduce staff costs by 30.5 per cent
- In terms of activities, the company had a busy quarter finalising its new chia oil and soft-gel capsules
- Cann also received a Parliamentary green light on hemp certification for its export products
- While it also received significant results from its trial aimed at stopping the progression of MS via a unique cannabis strain
- Shares in Cann Global closed worth 0.45 cents on Monday
Cann Global (CGB) has ended a busy June quarter with a healthy $7.4 million in the bank after receiving $545,000 in revenue.
Finances
Of that $545,000, the company received $333,000 in customer receipts, which represents an increase of 54.6 per cent compared to the amount received in Q3.
It’s accrued revenue also increased by 42 per cent quarter-on-quarter, while year-on-year it improved by a strong 165 per cent.
Cann burnt through $463,000 on operating costs during the June quarter, with the majority of that going towards staff and admin costs.
However, the company said it had undertaken a review of its staff and admin costs and managed to reduce them by 30.5 per cent in Q4.
Production costs also crept up for Cann in Q4, increasing by 12 per cent to sit at $286,000.
Cann said the rise was due to an increase in inventory, which it undertook in order to secure long-term contracts.
The company also revealed it hopes to be cash-flow positive shortly, as its operating costs trended down over the entire FY20.
Since the end of Q4, Cann has successfully raised $2.2 million in capital via an entitlement offer to top-up its bank balance.
Activities
It was a busy quarter for Cann in terms of activities, as the company spent a few weeks voluntarily suspended from trading, as it geared up for a research announcement.
The announcement is question was that it had recorded positive results from trials aimed at stopping the progression of multiple sclerosis (MS) using a unique strain of cannabis.
The research from the trial shows the particular cannabis strain tested can even reverse the progression of MS.
Along with this update, Cann also spent much of the quarter focused on the development and market introduction of its new Chia Seed Oil and Chia Oil Soft-Gel Capsule.
The products, which fall under Cann’s T12 brand, are expected to start being sold during this quarter.
The company also had a win with its hemp products, with a new bill passing in Australian Parliament allowing hemp products to be exported with a key certificate.
This certification is needed in order for the hemp to be legally accepted into some overseas markets, and Cann said the move will allow them to grow their export reach.
Looking ahead, the company’s executive chairperson, Pnina Feldman, said the focus was on medicinal cannabis, as its schedule class may soon legally change.
“CGB is well placed to take advantage of these regulatory changes which further strengthens our path to profitability,” she said.
Shares in Cann Global closed worth 0.45 cents on Monday.