Adam JacksonAyurcann Holdings Corp. (CSE: AYUR) (OTCQB: AYURF) reported record sales for its fiscal second quarter, as it tries to narrow its losses after cancelling a merger in November.
The Canadian cannabis manufacturer posted C$13.4 million in gross revenue for the three months that ended Dec. 31, a 25% rise from the same period the previous year.
Still, net loss came out to C$121,718 for the quarter, which was a solid improvement from the C$772,616 loss reported in the same quarter last year.
The Ontario-based firm reported a 43% gross margin and positive adjusted EBITDA of C$356,828 for the quarter, showing some progress toward profitability.
“Ayurcann’s Q2 results reflect the strategic execution of our growth plan and solidify our position as a market leader in the Canadian cannabis space,” the company said in a news release.
The company, which focuses on extraction services and branded products, said it holds 6% of the Canadian vape market and 12% of Ontario’s vape market, positioning itself as a “top 3 producer of vapes in Ontario by volume,” citing data from cannabis analytics firm Hifyre IQ.
Ayurcann said it is on track to bring in more than C$50 million in revenue for fiscal 2025, which would be a 300% increase over the past three years; it reported annual revenue of C$11 million in fiscal 2022.
The company launched 30 new products in the last six months as it expanded across vapes, pre-rolls and cannabis extracts.
The results come just months after Ayurcann terminated its planned business combination with Arogo Capital Acquisition Corp. (NASDAQ: AOGO), a special purpose acquisition company. Ayurcann ended the deal, citing Arogo’s failure to meet stock exchange listing and public filing requirements, Green Market Report reported at the time.
Financials show the company’s working capital improved to C$3.6 million as of Dec. 31, versus a C$2.1 million deficit in June.
