Newstrike Brands Reports Q4 and Year-End Financial Results

Newstrike Brands (TSXV:HIP,OTC Pink:NWKRF) released its Q4 and year end 2018 financial results.

As quoted in the press release:

During the three month period ended December 31, 2018, the Company generated net revenue of $4,652 (December 31, 2017 – $Nil). $2,611 of revenue was from shipments of dried cannabis to the provincial government wholesale distributors in Alberta, British Columbia, Nova Scotia, Ontario and Prince Edward Island for the adult-use market. $2,041 of revenue was from wholesale sales of cannabis.

During the three month period ended December 31, 2018, $2,160 of costs incurred during the production process and capitalized to inventory were expensed upon initial sale of inventory. This resulted in gross margin of $2,492 (53.5 [percent] of net revenue) before the fair value adjustment on the sale of this inventory. The expense of $2,219 for the fair value changes in biological assets included in inventory sold represents the amount of non-cash fair value adjustment being realized upon the sale of this inventory.

As at December 31, 2018 the Company had total assets of $152,808, including cash and cash equivalents of $96,640, up from total assets of $24,881, including cash and cash equivalents of $811 as at December 31, 2017. The increase is due to the net proceeds from the two bought deal equity offerings, the receipt of a termination fee comprising $9,500 in connection with the termination of an arrangement agreement with CanniMed Therapeutics Inc. on January 24, 2018, and the increase in fair market value of its strategic investments.

Click here to read the full press release.