Benzinga | Nov 30, 2021 04:58PM EST

BevCanna's Q3 Revenue Spikes Over 1000% YoY Ahead Of $21M Embark Acquisition

BevCanna Enterprises Inc. (CSE:BEV) (OTCQB:BVNNF) (FSE:7BC) reported its unaudited financial results Tuesday for the quarter ended Sept. 30, 2021.

The Vancouver-based company reported it had achieved CA$1.1 million ($862,628) in sales in the third quarter versus CA$94,000 in the prior year's quarter.

John Campbell, the company's CFO, called the quarterly results "evidence" of BevCanna's "continued execution and the impact that our brands are having on the market."

Q3 2021 Financial Highlights

* Gross profit was CA$356,168, as compared to a CA$40,280 loss in the same quarter of 2020.

* Net loss totaled CA$3.53 million compared to a CA$1.82 million loss in the same quarter of last year.

* At the quarter-end, the company had a balance of CA$ 177,06 million and cash of CA$655,563.

Q3 2021 Business Highlights

* Announced a definitive agreement to acquire Embark Health Inc., a leader in solventless cannabis extraction and enhanced delivery technology.

* Obtained product listings and purchase orders from British Columbia Liquor Distribution Branch, Alberta Gaming and Liquor Commission, and Ontario Cannabis Store and successfully shipped products to British Columbia and Ontario.

* Announced a definitive agreement with The Tinley Beverage Company Inc. (CSE:TNY) (OTCQX:TNYBF) to co-manufacture its award-winning cannabis-infused beverages for the Canadian market

* The company's Naturo Group announced a supply agreement with B.C. Ministry of Forests to supply British Columbia firefighters with custom limited-edition TRACE alkaline waters.

Recent News

* The initial shipment of the award-winning Keef Brands cannabis-infused beverages to the BCLDB sold out online.

* In October, BevCanna's Naturo Group announced that it had finalized an agreement with leading North American wholesaler distributor United Natural Foods, Inc.

* Announced that it has entered into a white-label agreement with Xebra Brands Ltd., a rising player in the global cannabis beverage sector.

* Entered into an agreement to manufacture and distribute white-label cannabis beverages for Averi Health Products.

* Granted an amendment to its Health Canada-authorized Cannabis Research License to include sensory evaluations of cannabis beverages in its product development trials.

"Our unique and diverse portfolio continues to expand, and with the impending close of our acquisition of Embark, will include an even wider range of adult-use and wellness channels and innovative product categories," Campbell continued.

BVNNF Price Action

BevCanna's shares traded 1.15% lower at $0.1979 per share at the time of writing on Tuesday late morning.

Photo: Courtesy of Giorgio Trovato on Unsplash