WeedMD Inc (OTCMKTS:WDDMF) posted net revenues of $5.9 million in Q2 2020 because of a surge in D2C sales for medical patients and sales through retail stores. The company also closed a credit facility for $30 million with the strategic investor – LPF (LiUNA Pension Fund of Central and Eastern Canada).
Integrates with Starseed to drive sales
CEO of WeedMD, Angelo Tsebelis, said the company advanced its integration with Starseed to improve D2C (Direct to Consumer) revenues. The company achieved significant improvement in production. He further said WeedMD posted better revenues in Q2 2020 because of enhanced recognition for its Color Cannabis products for adult use and a distinct medical service platform.
Inks strategic partnerships
WeedMD entered multiple strategic partnerships in Q2 2020. It also expanded products produced using biomass generated at its extraction center. The company expects to report a better harvest from its outdoor platform during this fall. With consumers adjusting to coronavirus, the company witnessed increased sales and improvement in customer activity. The credit facility offered by LPF helped the company maintain liquidity and promote sales growth in the future.
CFO of WeedMD, Lincoln Greenidge, the company posted revenues of $18 million in H1 2020 because of rapid growth in adult-use product sales and integration with Starseed. The company noted an increase in customer activity towards the end of the quarter because Canada’s markets started reopening.
Lincoln further said the credit facility offered by LPF provides working capital, improves financial flexibility to support brand awareness and expansion of distribution channels. It strives to satisfy the market for cannabis 2.0 products and improves operating efficiencies.
Introduces black sugar rose
In the fall of 2020, WeedMD introduced Indica dominant hybrid – Black Sugar Rose for the consumers. The company’s Color Cannabis Vapes line comprises 510 thread vape products for consumers.
Considering consumers’ feedback, WeedMD introduced Color cannabis prerolls, which are manufactured using Sweet Sativa whole flower and Ghost Train Haze. The customers can avail of Color cannabis preroll products through retail outlets and provincial distributors beginning in October 2020.
WeedMD transitioned to nitrogen-flushed pouch packaging for its Color Cannabis whole flower products because several customers complained about packaging waste and the poor appearance of product bags.