The Company achieved its best-ever annual revenue and net income for its latest four quarters
DENVER, CO / ACCESSWIRE / May 16, 2023 / (via IBN) AmeriCann Inc. (OTCQB:ACAN) (the “Company”), a cannabis company that develops state-of-the-art cultivation, product manufacturing and distribution facilities, has released financial and operational results for its quarter ending March 2023.
“AmeriCann’s financial discipline and strong business model have produced record profitability and cash flow,” said CEO Tim Keogh. “We achieved the best consecutive four quarters of revenue and net income in our history.”
The Company accomplished five consecutive quarters of positive net income. Net income increased 257% and revenue increased approximately 12% for the quarter ended March 2023, relative to the quarter ended March 2022.
The increase in financial performance is attributable to greater revenue received from products produced and manufactured at Building 1, the Company’s initial building at its Massachusetts Cannabis Center (“MCC”) development in Freetown, Massachusetts.
Building 1 is a 30,000-square-foot cultivation greenhouse and processing facility that utilizes AmeriCann’s proprietary “Cannopy” cultivation system. Building 1 is fully occupied by Bask Inc., an existing Massachusetts licensed vertically integrated cannabis operator.
AmeriCann receives base rent and a revenue participation fee of 15% of all gross monthly sales of cannabis, cannabis-infused products and non-cannabis products produced at the Massachusetts Cannabis Center. As operations commenced and accelerated at Building 1, AmeriCann established many milestones for its financial performance.
AmeriCann commenced operations at its Massachusetts Cannabis Center in 2019, and, since then, the Company has generated more quarterly revenue each quarter than for the same quarter of the prior year.
Highlights for quarter ended March 31, 2023
- Accelerating revenue, net income and cash flow driven by the performance of the Company’s Massachusetts Cannabis Center.
- Company revenue of $748,406 represents a 12% increase for the quarter compared to the quarter ended March 2022.
- Annual gross margins were greater than 98%.
- In addition to increased cultivation productivity in the state-of-the-art greenhouse, the manufacturing of cannabis-infused products has increased dramatically in Building 1.
- Manufactured infused products produced at Building 1 have achieved success as some of the bestselling cannabis brands in Massachusetts in their respective categories.
- For 2022, the revenue from the Massachusetts cannabis market was $1.76 billion.
- The sale of cannabis in Massachusetts has exceeded $5 billion in medical and adult-use cannabis since adult-use sales commenced in late 2018.
- AmeriCann released a video highlighting the high-tech, sustainable designs at the Massachusetts Cannabis Center and Building 1, which can be found HERE.
AmeriCann is in the final design phase of expanding its MCC development in Freetown, Massachusetts. The Company has secured provisional cultivation and manufacturing licenses for the MCC. The next phase of the Massachusetts Cannabis Center calls for up to 60,000 square feet of extraction, manufacturing and distribution infrastructure and approximately 160,000 square feet of additional cannabis cultivation infrastructure.
AmeriCann (OTCQB:ACAN) is a cannabis company that develops cultivation, processing and product manufacturing facilities.
AmeriCann uses greenhouse technology, which is superior to the current industry standard of growing cannabis in warehouse facilities under artificial lights. According to industry experts, by capturing natural sunlight, greenhouses use 25% fewer lights, and utility bills are reduced by as much as 75% compared to typical warehouse cultivation facilities. As such, AmeriCann’s Cannopy System enables cannabis to be produced with a greatly reduced carbon footprint, making the final product less expensive. Additionally, greenhouse construction costs are nearly half of warehouse construction costs.
AmeriCann is also designing GMP-certified cannabis extraction and product manufacturing infrastructure. The Company has secured provisional licenses to produce cannabis-infused products, including beverages, edibles, topicals and concentrates. AmeriCann plans to operate a marijuana product manufacturing business at the Massachusetts Cannabis Center.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may” and “could,” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention, and undertakes no obligation, to revise any forward-looking statements, whether as a result of new information, a future event or otherwise. For additional uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Registration Statement on Form S-1, which may be viewed at www.sec.gov.