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- Global medicinal cannabis, hemp seed and wellness corporation Cann Global (CGB) has reported positive sales growth over FY20
- The company reported $1.8 million in revenue, which is a 275 per cent increase on the prior year of $481,000
- This increase was due to the company’s expansion into plant-based food products and the purchase of T12 Holdings
- Cann Global’s food division was the strongest this year, recording $1.6 million in revenue, which is a 232 per cent increase from 2019
- However, the group reported a total loss of around $8 million, which is 13 per cent better than 2019’s $9.2 million
- Cann Global Thailand, which is 55 per cent owned by the company, achieved a first-year profit of $143,250
- Executive Chairperson, Pnina Feldman, is pleased with the revenue during the current uncertain environment
- On the market today, Cann remains in the grey and is trading for 0.5 cents per share
Global medicinal cannabis, hemp seed and wellness corporation Cann Global (CGB) has reported positive sales growth over FY20.
Revenue for the year came in at $1.8 million, which is a 275 per cent increase on the prior year’s $481,000 statistic. The company says this increase was due to the expansion into plant-based food products and the purchase of T12 Holdings.
The food division was the star of the year, recording $1.6 million in revenue, which is a 232 per cent increase from 2019.
Cann delivered a gross profit of $470,000 which improved on last year’s $82,000 gross loss. However, the group reported a total loss of around $8 million, which is 13 per cent better than 2019’s $9.2 million.
The company spent 20 per cent less than last year, with expenses for the year totalling $6.6 million, despite Cann increasing investment expenses.
Cann Global Thailand, which is 55 per cent owned by the company, achieved a first-year profit of $143,250.
Executive Chairperson, Pnina Feldman, is pleased with the revenue during the current uncertain environment.
“The company has remained largely unimpacted by COVID-19 as a result of measures implemented to overcome various operational challenges, including those associated with shipping and legislative delay,” she said.
“In a major milestone for the business, this last year we are proud to have added plant-based food business T12 to our Group which is delivering solid revenue growth as a result of the establishment of new distribution channels and growing product lines,” she added.
Food division
In July 2019, Cann purchased T12 Holdings. T12 owns Organic Markets Direct (OMD), a major wholesaler of health foods that includes hemp seed products, chia seeds, green leaf stevia, cacao and other well-known health foods.
Throughout FY20, the food division business continued to strengthen its distribution channels and introduced new products.
The company developed a number of new products including chia oil soft gel capsules and a significant investment was made into new product markets such as hemp-based pet-foods.
Medical cannabis division
In January 2018, Cann Global entered into a 50/50 joint venture with Canntab Therapeutics. The agreement was to bring Canntab cannabinoid formulations to Australia and Asia.
These tablets have a distinct advantage over competitors products as they represent are at the right dosage for pharmaceutical grade standards and are already being distributed successfully in Canada.
The company is looking forward to releasing the product in Australia once it receives government approvals.
Skincare
Cann Global also has a 50/50 partnership with one of Israel’s leading cannabis companies, Pharmocann. The agreement is to produce and sell Pharmocann’s cannabis-based treatments, dermatological and cosmetic beauty products.
The company is in discussions with Medcan Australia and Australian manufacturing partners to make preparations for the production and manufacture of the new skin-care range.
“The company believes that these new Australian made and manufactured skin-care products will be welcomed by Australian and Asian consumers due to the current high demand around the world for these types of products,” Cann added.
Mining division
The company is progressing with its renewal applications with the Queensland Department of Natural Resources to ensure it maintains the bauxite assets in good standing.
On the market today, Cann remains in the grey and is trading for 0.5 cents per share at 1:38 pm AEST.
