CBD of Denver Inc. (OTCMKTS:CBDD) stock is seeing weakness in the opening session on Thursday after releasing second quarter earnings. The stock has fallen 25% over the past month.
Market Action
As of 10:39, CBDD stock is down by 10.40% to $0.0117 with more than 19.28 million shares, compared to its average volume of 21.44 million shares. The stock has moved within a range of $0.0099 – 0.0132 after opening the trade at $0.0130.
Major Trigger:
CBD of Denver Reports Second Quarter 2021 Revenue of $7.3M (USD)
Key Highlights:
- CBDD generated revenue of USD $7.29 million in the second quarter, driving revenue for the six months ended June 30 to USD $14.6 million, more than 90% of the Company’s full year 2020 results.
- While CBDD continued strong growth in sales volume during the second quarter, the recent 25% drop in wholesale CBD flower prices in Switzerland and Europe impacted quarter-over-quarter growth compared to the first quarter of 2021.
- To expedite its path to profitability, CBDD has decided to exit its US business operations, enabling the Company to focus its efforts and capital on expanding its business profitability in the high-growth Switzerland and European markets.
Key Quote:
“Our Managing Director Sales, Pascal Siegenthaler, together with his sales team, continue to do a great job despite challenging conditions from pricing pressures in the wholesale market,” states CEO Marcel Gamma. “We are pleased that prices are currently stabilizing and expect an increase due to rising demand towards the end of the summer. With continued growth in sales volume, a direct result of our professional sales team and established customer base, we anticipate a rapid return to strong top-line growth as pricing pressures subside. Complementing the growth of our wholesale business, we have continued to develop our retail business and direct-to-consumer channel, expanding our client base and increasing distribution of our products.”
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