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

Heritage Cannabis Holdings Corp. CANN 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. AVCN AVCNF 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

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