William Sumner
It has been a little more than a week since recreational cannabis sales were launched in Canada, and already the policy has become a big hit. Millions of dollars in cannabis sales have already been recorded, and in the province of British Columbia alone there have been more than 21,000 transactions. Although some cannabis companies, like MedMen, have posted large revenues with considerable expenses to counter its gains, other cannabis companies have enjoyed much rosier financial outcomes; such as Delta 9 Cannabis Inc. (NINE), THC BioMed Intl Ltd. (THC), and Organigram Holdings Inc. (OGI).
Delta 9 Cannabis Inc.
Earlier this week, Delta 9 announced that within the first seven days of legalization, its Delta 9 Cannabis Store subsidiary logged roughly 9,600 transactions; generating CAD$736,124 in revenue. The majority of its revenue came from the sales of dried cannabis and to a lesser extent the sale of ancillary products and accessories. Although online sales were restricted to 10% of its initial in-store inventory, the company received a total of 1,583 online orders, of which 622 were same-day deliveries. “The first day of legal recreational cannabis sales blew away all of our expectations,” said Delta 9 CEO John Arbuthnot in a statement. “We launched online sales of cannabis just after the stroke of midnight on October 17… By 4 a.m., we had sold out all the product set aside for online sales…”
THC BioMed Intl Ltd.
Although THC BioMed did not post its sales figures for the last week, the company did announce that it has sent its third shipment to the British Columbia Liquor Distribution Branch and that all of its strains and pre-rolls have already sold-out.
Organigram Holdings Inc.
Also enjoying early success in Canada’s new adult-use cannabis market is Organigram. Providing cannabis to a number of Canadian provinces, the company has reported more interest than initially expected. In the province of Ontario, for example, the Ontario Cannabis Store’s website has received more than 1.3 million unique visits and approximately 100,000 online orders within the first 24 hours of retail sales. “The launch of the Canadian adult recreational cannabis market has already exceeded our expectations in many ways,” commented Organigram CEO Greg Engel. “Consumers have immediately shown tremendous support for this new marketplace and incredible interest in our own portfolio of recreational brands, driving a phenomenal volume of early sales.”
