Medicine Man Technologies, Inc. MDCL showed higher revenue and a higher net loss in its first-quarter report Tuesday, and the cannabis company's CEO eyed potential catalysts ahead, including legislation with a direct impact on the Colorado company.
What Happened
Medicine Man reported first-quarter operating revenue of about $2 million Tuesday, a 65-percent increase from the first quarter of 2018.
Product sales grew 236 percent year-over-year from $459,335 to $1.5 million.
At the same time, the cannabis company posted a net loss of 10 cents per share versus a break-even first quarter in 2018. Cash flow from operations rose from negative $298,814 a year ago to a positive $373,551. Medicine Man said.
Operating costs jumped from $819,492 a year ago to $2,632,791. The Denver-based company attributed the increase to salaries and related expenses; professional fees; and the cost of acquiring additional staff to meet a growing client base.
Why It's Important
“With the recent progress of HB19-1090 and the strong overall momentum within the cannabis industry, we came in this quarter with record revenues and strong sales from our products division,” Andy Williams, the co-founder and CEO of Medicine Man, said in a statement.
HB19-1090 is a piece of Colorado legislation that would remove a prohibition on the holding of marijuana licenses by public companies.
What’s Next
Medicine Man has significant catalysts ahead, including the pending acqusitions of Medicine Man Denver and MedPharm Holdings, LLC, Williams said.
Medicine Man shares were down 0.34 percent at $2.89 at the time of publication Tuesday.
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