Shares of medical marijuana companies including Canopy Growth Corporation (OTCMKTS:TWMJF) are in focus since last one week. A revolutionary ruling by a Vancouver attorney has permitted Canadian medical pot users to cultivate marijuana pot at home. However, recreational pot use continues to be illegal across the nation, despite PM Justin Trudeau’s promise to legalize marijuana. The decision removes a ban put by Canada’s last conservative government.
The financial performance
Canopy Growth released its financial report for 2Q2017 closed September 30, 2016. All financial mentioned are posted in Canadian dollars. Revenue came at $8.5 million, a 22% jump over 1Q2017 and 245% increase over the quarter closed September 30, 2015. Bruce Linton, the Chairman and CEO, said that robust growth in registered subjects resulted in higher revenues in 2Q2017. They continue to believe that quality, consistency and variety of supply are factors in driving market share in the growing legalized cannabis market.
Linton added that in last months he has seen Tweed introduce robust genetics and better practices into its production mechanisms, advancing quality and retiring earlier strains. The fruits of this measure to expand inventory and strain variety, as well as harvesting 350,000 square foot Farms greenhouse of Tweeds just after quarter’s close, will begin to be seen in store this quarter. The recent deal of Quebec -based Vert Medical along with the expansion strategy Canopy Growth reported with the Goldman Group highlights a continuation of their plan to expand the cannabis production base in the industry.
Revenue for 2Q2017 came at $8.5 million against revenue of $2.5 million in the quarter closed September 30, 2015, and $7 million for 1Q2017. Moreover, revenue in 1H2017 totaled $15.5 million compared to $4.2 million in the comparable period last year. The company recorded more than 24,400 registered patients at end of quarter compared to more than 16,600 in the previous quarter.