Can B Corp (OTCMKTS:CANB) (CanB) reported a drop of 26% YoY to $1.709 million in 2020. It is on the backdrop of disruptions caused by the coronavirus pandemic.
CanB could not conduct the surgeries because it has to facilitate emergency use of its facilities and operating rooms. It resulted in reduced use of ultrasound devices required for patient recovery. Also, sales of its mainline cannabidiol products like salves and tinctures declined because of limited access or the closure of medical office facilities.
CanB reported a drop of 16.11% to $1.431 million in profits in 2020. It is on the backdrop of an excessive supply of CBD biomass and hemp in the market. However, its margins improved because of a good blend of higher-margin products.
CanB’s loss is dropped by just $0.2 million to $5.7 million in 2020. Its operating expenses declined by 24% YoY to $5.8 million in 2020.
CEO of CanB, Marco Alfonsi, said 2020 is a challenging year for the company. CanB focused on revenue operations that offer higher margins and lowered its expenses to position to report improved profits and growth in the future.
Expects quick return to normalcy
Marco further said the company engages in offering premium quality cannabidiol products and traditional products for wellness. With easing signs of restrictions imposed due to ongoing coronavirus, the company expects to returns to normalcy soon and report growth.
CanB would use its Lacey, WA-based production and R&D facilities for private label products and its products.
Raises $2.8 million
CanB raised capital of $2.8 million from an institutional investor through debt financing. The company used the proceeds to pay off the outstanding convertible notes.
CanB expanded manufacturing at its Lacey, Washington-based Pure Health Products facility and almost tripled the production by installing high-speed equipment.
It also maintains cash of $1.7 million in April 2021.
The branded cannabidiol products of CanB include skincare products, topicals, salves, and tinctures.
CanB offers its CBD products under various brands like Seven Chakras, Canbiola, NuWellness, Super Foods, and Pure Leaf Oil. The company markets its products through a multi-channel approach like medical facilities, doctors, D2C, online, and retailers.