THC BioMed Intl Ltd (OTCMKTS:THCBF) has released its financial results for the quarter ended October 31, 2020, in which revenue was $0.622 million. The company produced 405.3 kg of dried cannabis in Q1 2021 and sold around 150.3 Kg at an average of $4.2 per gram.
During its first quarter of 2021, the company started shipping Pure Cannabis Sticks for the adult-use recreational market. Equally, THC BioMed submitted a new products notice to Health Canada for THC Kiss Water and THC Kiss Gummies.
THC BioMed completes first and second Private Placement tranches
The company completed the first private placement tranche of $1.5 million on October 21, 2020. THC BioMed issued around 1.364 units in the first tranche at $0.11 per unit for gross proceeds of $150,000. It is important to note that each unit comprises a common share and one common share purchase warrant, granting holders the opportunity to buy the company’s shares for 24 months at $0.15 per share. On November 12, the company finalized a second tranche of the 1.5 million private placement, leaving a $0.95 million balance. THC BioMed issued around 3.636 million units at $0.11 per unit for gross proceeds of $400,000.
Low dried cannabis prices impacted sales revenue in Q1 2021
John Miller, the company’s CEO, stated that the results the company posted in its Q1 2021 reflects the overall low selling prices of dried cannabis. Miller said that the low prices put pressure on Licensed Producers. During the quarter, the company provided price reductions of around $150,000 to all provinces to move its dried cannabis product, affecting sales revenue. The CEO added that the company has now identified the right price to quickly move its dried cannabis, which will be vital in boosting revenue as THC BioMed focuses on Cannabis 2.0 product line. Going forward, the company plans to focus more on the edibles market, especially on its cannabis beverage, THC Kiss, and its THC Kiss Gummies, which offers the prospect of improving gross margin.