The company is eyeing product line expansion for growth.
Canadian extractor Ayurcann Holdings Corp. (CSE: AYUR) (OTCQB: AYURF) posted a significant increase in its first-quarter revenue for the period ending Sept. 30, but net losses continued to mount.
Ayurcann’s gross revenue reached C$11.8 million during the quarter, a 249% rise versus the same period last year. Despite the surge in revenue, the company reported a net loss of C$180,645 for the quarter.
However, the loss is an improvement from the C$968,622 loss reported in the same quarter of the previous year. The company’s accumulated deficit now stands at C$10.6 million, a going concern for the company, according to regulatory filings.
“We feel that the awareness of our brands in the market and the quality and flavor profile we are introducing will enable Ayurcann to gain market share quickly,” Igal Sudman said in a statement Wednesday. “Offering value and potency in a segment that is primed to grow even more.”
Ayurcann’s higher expenses, particularly in the general and administrative segments, which rose to C$2.3 million, mirror its efforts to expand operations and market reach in a competitive Canada. The expenses reflect increased office and marketing costs as part of the company’s strategic growth plan, it said in filings.
Ayurcann said it has been actively diversifying its product portfolio. The company introduced 12 new SKUs across various cannabis product categories, including vapes and pre-rolls, and plans to continue expanding its product line.
The company’s entry into the infused pre-roll category comes as the segment proves popular in North America. Ayurcann’s brands, such as Fuego, maintain strong positions in the market.
The company ended the quarter with C$1.5 million cash on hand, versus C$1 million in the same period in the previous year.
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