Benchmark Botanics Inc. (OTCMKTS:BHHKF) has announced that it has suspended Potanicals Green Growers Inc. for another three months to further minimize its operating costs. The company had also released its operating and financial results for the third quarter of fiscal 2020.
Benchmark Botanics suspended Potanicals facility as it cuts costs
Potanicals is a wholly-owned Benchmark Botanics subsidiary that grows and cultivates cannabis at Peachland in British Columbia. Benchmark Botanics is considering options for contracting out or divesting the facility as it explores strategic opportunities that can add value for the Potanicals facility. The company’s CEO William Ying stated that Benchmark Botanics continues to work to cut operating costs and enhance its financial performance.
In its third-quarter, the company achieved sales revenue of $375,801 compared to nil sales for the same period a year ago. Net loss in Q3 2020 reduced significantly from $1.176 million last year to $65,149. During the quarter the company acquired 26% additional interest in 1139000 B.C to enhance its cultivation capabilities.
Benchmark Botanics sold 121,941 grams of cannabis
For the nine months ended September 30, 2020, the company reported total revenue of $654,216 compared to $134,844 in 2019. This revenue was from dried cannabis sold to licensed producers as well as recreational adult-use retail sales in Canada. During this period the company sold around 121,941 grams of cannabis at an average price of $5.36 per gram compared to 24,517 grams sold the previous year.
Ying said that during the third quarter the company achieved significant dried cannabis sales growth compared to the same quarter a year ago. He said that the company continued its efforts of cutting operating expenses to address its working capital deficiency. During the quarter the company reduced general and administrative costs by 40% YoY. Ying also confirmed that the company increased its ownership stake in 1139000 B.C Ltd to a control position of 51%. 1139000 B.C operates a four-acre facility in Pitt Meadows in British Columbia and this acquisition will position the company better for sustainable growth going forward.