Debra Borchardt
CannaRoyalty Corp. (CNNRF) reported that its revenue for 2017 rose to C$3 million, but could only be compared to nine months of revenue for 2016 which was C$642,277. The same went for the company’s net losses, which were C$9 million versus a loss of C$10.3 million for nine months ending December 2016. The net loss per share was trimmed to C$0.22 for the 12 months ending in 2017 versus C$).41 for the nine months of 2016.
The cash and cash equivalents rose to C$4.5 million at the end of 2017 versus C$2.9 million for 2016. Total assets of C$46,139,757 increased 43% over 2016’s C$32,197,938. CannaRoyalty has a bought deal financing of $15,000,000, that was announced on March 16, 2018, and is anticipated to close in April 2018.
“In 2017, our team worked hard to position the Company for long-term growth with the California market as a foundation,” said Marc Lustig, CEO of CannaRoyalty. “Those efforts culminated in several strategic transactions over the past four months that have transformed CannaRoyalty into one of the largest and best-positioned cannabis players in California. Our market-leading distribution business places us in an ideal position to be a partner of choice for leading brands and dispensaries across the state.”
The company said in a message to shareholders that the acquisitions of Alta Supply and RVR would give CannaRoyalty a leading cannabis distribution and logistics network in the world’s largest regulated cannabis market. On March 27, 2018, CannaRoyalty announced it had closed the acquisition of Alta Supply Inc. and entered into a binding term sheet for the acquisition of 100% of River Distribution and its affiliates. “Together, these businesses generated revenue of US$31.9 million in 2017. With our distribution platform, we are well positioned to rapidly expand the sales and reach of existing brands that are looking to access shelf-space across the state, as well as for dispensaries seeking access to a full spectrum of top products and brands. We can also leverage this infrastructure to do the same for our own brands.”
Looking Ahead
Over the next 12 months, the company plans to integrate the operations of acquired companies, including Kaya, Alta Supply, and RVR; make strategic acquisitions of promising products or leading brands; drive growth of distributed and CR Brand products; lay the foundation for sale of CR Brand products in other jurisdictions, beginning in Canada and portfolio focus and rationalization.
Stock Performance
The stock on the OTC Marketplace was lately trading at $2.93, down from its 52-week high of $4.58 which it reached the beginning of January. The stock has recovered slightly from trading at the $2.60 range at the end of February.
