Over 88% sequential growth in Q2 2019 preliminary unaudited revenue (compared to Q1 2019), primarily driven by focused execution in expanding California market.
CannaRoyalty Corp. d/b/a Origin House (CNSX:OH.CN) (OTCQX:ORHOF) (“Origin House” or the “Company”), a North American cannabis products and brands company today announced preliminary unaudited revenue of approximately $21 million(1) for the second quarter ended June 30, 2019, at an approximate gross margin, excluding fair value items, of 17%(1). All figures are reported in Canadian dollars, unless otherwise indicated.
The California market has grown in 2019, with an increase in the number of licensed dispensaries since December 2018(2) and a more stable regulatory environment than in 2018. Origin House’s progress during the first six months of the year has primarily been driven by its focused strategy to capitalize on the statewide California platform it established over the past two years.
Marc Lustig, Chairman and CEO of Origin House commented, “Origin House has continued to gain momentum as our team leveraged the California-focused platform we have built over the past two years to drive another quarter of record revenue along with steady progress on gross margin. As expressed previously, we strongly believe that 2019 will mark an inflection point both for the California market and Origin House as a whole and the numbers are proving this out.”
Origin House plans to release its full financial results for the second quarter ended June 30, 2019 during the second half of August and will be coordinating its financial results release with the release of Cresco Labs’ financial results.
1 The financial information presented in this news release is based on preliminary, unaudited financial statements prepared by management, for the second quarter ended June 30, 2019, and is fully qualified by the section in this press release entitled "Disclaimer Regarding Financial Information". Gross margin figures exclude fair value items related to biological asset accounting as the Company is still in the process of completing its valuation of biological assets under IAS 41. 2 California Bureau of Cannabis Control statistics
About Origin House
Origin House is a growing cannabis brands and distribution company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. Origin House’s California brand development platform is operated out of six licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. Origin House is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke. Origin House’s shares trade on the CSE under the symbol “OH” and on the OTCQX under the symbol “ORHOF”. Origin House is the registered business name of CannaRoyalty Corp. For more information, visit www.originhouse.com.
Disclaimer Regarding Financial Information
The financial information presented in this news release is based on preliminary, unaudited financial statements prepared by management, for the second quarter ended June 30, 2019. Accordingly, such financial information may be subject to change. All financial information contained in this news release is qualified in its entirety with reference to the Company’s unaudited financial statements for the second quarter ended June 30, 2019, which will be filed on SEDAR (www.sedar.com) during the second half of August. While the Company does not expect there to be any material changes to the financial information presented in this news release, to the extent that it is inconsistent with the information contained in the Company’s unaudited financial statements for the second quarter ended June 30, 2019, the financial information contained in this news release shall be deemed to be modified or superseded by the Company’s unaudited financial statements. The making of a modifying or superseding statement shall not be deemed an admission for any purposes that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Origin House’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements relating to the future growth of the California cannabis market, the timing of the release of the Company’s full financial results for the second quarter ended June 30, 2019, the execution of the Company’s strategy, new opportunities, the Company’s timing and process for expansion, new opportunities, future growth and other statements.
Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects that are engaged in activities currently considered illegal under US federal law; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. The Company disclaims any intention or obligation to update or revise such information, except as required by applicable law, and the Company does not assume any liability for disclosure relating to any other company mentioned herein.
SOURCE Origin House
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SOURCE: Origin House
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