Delta 9 reports year-end and Q4 results
On Mar. 31, Winnipeg-based Delta 9 Cannabis Inc. reported its financial results for the 2021 financial year and its Q4.
Among the highlights, the company saw record net revenue of $62.3 million in 2021, up from $50 million a year earlier. Gross profit came in at $18.1 million, an increase from $17.8 million in 2020. Q4 saw quarterly net revenues of $17.1 million, up to 21 per cent from the same time in 2020. However, gross profit for the quarter was down, reporting $4.9 million – a decrease of 22 per cent from Q4 2020.
“I am very proud of our Delta 9 team who worked hard to post record revenue results for 2021 against a backdrop of a challenging market environment for cannabis in Canada,” said John Arbuthnot, CEO at Delta 9. “We remain focused this year to produce growth and improved results as we continue to expand our retail store network, to focus our efforts on sales of our turn key Grow Pods in international markets, and to continue to grow the Company’s cannabis wholesale division. Delta 9 will continue to execute its vertically integrated and diversified revenue strategies as we continue to accelerate revenue growth and implement prudent control costs.”
The same day the company also announced it had closed a deal to acquire Uncle Sam’s Cannabis Ltd. and its 17 retail cannabis locations in Alberta, increasing Delta 9’s footprint to 34 stores across Canada. The final closing of the acquisition deal requires approval from the TSX. As well, Delta 9 also closed its previously announced $32 million credit facility with Connect Credit Union. Finally, Delta 9 will also complete a private placement of $10,000,000 in principal amount of senior secured second-lien convertible debentures by Sundial Growers Inc.
“We are pleased to have finalized this transaction to grow our market share in the Canadian retail cannabis market with an additional seventeen-store presence,” said Arbuthnot. “Delta 9 now has 34 retail cannabis stores in operation across Canada and is positioning as one of the countries largest vertically integrated cannabis retailers. The Company has an aggressive growth strategy to actively acquire cannabis retail stores that will provide meaningful revenue growth and positive adjusted EBITDA.”
Hudbay Minerals Inc. announces annual reserve and resource update
Toronto-based mining company Hudbay Minerals Inc. shared its its annual mineral reserve and resource update on Mar. 28.
The company’s Snow Lake, Man. operation saw exploration success in 2021, with additional reserves “identified at Lalor and the 1901 deposit, which are expected to extend the mine life of the Snow Lake operations by one year until 2038, maintaining the 17-year mine life.” Its New Britannia gold mill refurbishment and commissioning activities were completed in July 2021 and the mill achieved commercial production on November 30, 2021.
As well, the updated mine plan for Snow Lake in 2021 saw an increase in annual gold production to over 180,000 ounces for the next six years due to the New Britannia mill. The company also noted the “potential to further enhance the Snow Lake operations through exploration opportunities and additional mill processing projects.”
“We have continued to grow our copper and gold mineral reserves and resources through successful exploration in Peru, Snow Lake and Arizona,” said Peter Kukielski, Hudbay’s president and CEO. “While we already have a solid production growth profile for many years to come, our exploration efforts over the past year have been successful in replacing what we have mined, adding reserves to our life of mine plans and expanding our resource base to position us for additional long-term reserves growth. This is another example of our proven track record of delivering value through exploration, and we look forward to continuing to advance our leading organic pipeline of copper exploration and development assets for the next stage of growth at Hudbay.”
Manitoba wool mill receives grant
Long Way Homestead, a fibre farm and wool mill at Ste. Genevieve, Man. is the recipient of a GoodSpark Grant from Desjardins Group.
“We are so glad to have the support of Desjardins to help our business grow sustainably, both financially and environmentally,” said Anna Hunter, owner of Long Way Homestead. She plans to use the GoodSpark Grant to provide enhanced training for her employees and welcome newcomers into the business. “I believe entrepreneurs are important to revitalizing rural communities by providing meaningful opportunities for employment and engagement. The GoodSpark Grant will help us do that.”
Desjardins Group announced the recipients from its GoodSpark Grant program on Mar. 28, awarding 150 small business owners across Canada with grants of $20,000. The program was designed to support small businesses as they “continue to pave the way for Canada’s socio-economic recovery and renewal” according to Desjardins.
“Small businesses create jobs, develop innovative solutions to our challenges and they serve the needs of our community. Investing in small businesses means investing into the vitality of our society,” said Guy Cormier, president and CEO of Desjardins Group. “The GoodSpark Grants are a true testament to our commitment to the success of our entrepreneurs, our small businesses. We are proud to be supporting them in this way.”