- Medicinal cannabis company Cann Group (CAN) is trading slightly lower today after revealing a 2020 financial year of soft revenue and deepened losses
- The company’s full-year revenue slipped 56 per cent to $1.86 million compared to the previous financial year
- The company also deepened its annual loss to $16.9 million over the 2020 financial year
- As Cann continues to invest in the Mildura facility expansion, the company said it expects revenue of around $15 million for the 2021 financial year
- Cann was the first Australian company to receive a medicinal cannabis licence from the Office of Drug Control (ODC) in 2017
- Shares in Cann are trading 2.41 per cent lower this afternoon, currently worth 40 cents each
Medicinal cannabis company Cann Group (CAN) is trading slightly lower today after revealing a 2020 financial year of soft revenue and deepened losses.
Cann’s full-year revenue for the most recent financial year came in at $1.86 million — a 56 per cent decline from the $4.25 million pulled in the year before.
Hand-in-hand with the weakened revenue was a $16.9 million annual loss, which is 55 per cent lower than FY19’s $10.9 million.
Of course, the company has spent a great deal of time and resources on its expansion of the major Mildura facility. In fact, the company said this morning it has invested around $50 million into the project to date.
In late-2019, the company faced some challenges in the expansion of the Mildura facility due to a global oversupply of cannabis, according to Chairman Allan McCallum.
Today, however, the company told shareholders it is still committed to the Mildura expansion plans. Site works, service connections, and the project’s superstructure have been completed.
This means looking ahead, the company is expecting some major upcoming boosts to operating revenue.
In fact, Cann said today it is expecting around $15 million in revenue for the 2021 financial year. On top of this, the company plans to land external funding options for the Mildura expansion.
With around $40 million cash in the bank, the company has enough breathing room to continue working towards profitability.
Cann was the first company in Australia to be issued a cannabis research licence by the Office of Drug Control (ODC), back in February 2017. A month later, the company received Australia’s first medicinal cannabis licence, which meant it was authorised to produce its own cannabis and hemp products.
Still, the company’s shares are on a steady decline as investors patiently await for the investment into Mildura to pay off.
Today, Cann shares are down 2.41 per cent in later-afternoon trade and worth 40 cents each.