Next Green Wave Holdings Inc (CSE:NGW) (OTCMKTS:NXGWF) posted first-quarter results on Thursday that saw materially higher sequential revenue driven by strong demand for its high-end finished products.
For its first quarter ended March 31, 2020, the Vancouver-based seed-to-shelf craft cannabis producer clocked up revenue of $1,177,752 million, compared to $144,036 in the fourth quarter of 2019.
In a statement accompanying the numbers, Next Green Wave CEO Mike Jennings CEO said given “the challenges and obstacles” the company, and the industry, have had to overcome, Next Green Wave was “very proud” of its accomplishments during the quarter.
“We have been achieving results that are starting to meet our expectations from both a financial and operational standpoint. However, even though we have produced some extremely high-end finished product recently, there is still room to grow,” added Jennings.
During the first quarter, the company said it increased its quarter-over-quarter revenue, while “significantly reducing both its cash-out operating expenses and marketing expenses.” It also noted that it has increased plant quality with “some strains testing as high as 40% total cannabinoids.”
Next Green Wave also said that in the months of March, April and May 2020, the company operated with “positive cash flow, and achieved both positive EBITDA, or earnings before interest, taxes, depreciation, and amortization and positive net income.”
“In the months of April and May 2020, the company surpassed $1 million of revenue in each month exclusively (March 2020 was $900,000) and in the last three consecutive months, the company earned revenues over $2.9 million,” the company said in a statement.
Next Green Wave has entered the final stages of both licensing and construction related to the extraction facility and expects this to be fully operational in the third quarter of 2020.
Next Green Wave owns and operates a 35,000 square-foot indoor state-of-the-art cultivation facility and is currently expanding extraction and other operations on its cannabis zoned campus. It also has a seed library of over 120 cannabis strains, which include multiple award-winning genetics.