VANCOUVER, Dec. 30, 2019 /PRNewswire/ – 1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE: TGIF) (OTCQX: TGIFF), a vertically integrated cannabis and growth-orientated consumer packaged goods company, is pleased to announce its first quarter 2020 (“Q1”) financial results for the period ended October 31, 2019. All amounts expressed are in Canadian dollars.
In Q1, the Company continued to focus on building its portfolio of consumer cannabis goods by adding new and established brands to the Nevada market, and by launching its own co-branded products in new verticals. As a growth-orientated company, 1933 Industries also focused on the expansion of its infrastructure assets that, when at full production, will provide the necessary raw materials to support its brands and increase margins. During Q1, the Company’s cultivation arm, Alternative Medicine Association (“AMA”), oversaw the first growth cycle of cannabis plants in its new and expanded facility in Las Vegas. AMA also initiated the expansion of its extraction facility in Las Vegas. It also completed a management agreement with a California-based operation, thereby giving the Company cultivation and manufacturing access to the largest cannabis market in the United States.
Total revenues for Q1 were $3.9 million, down 26% from its previous quarter, mainly due to the decline in market share for vape and distillate sales in the recreational market in Nevada. Vaping accounts for 25% of cannabis sales in Nevada and according to economic analysis firm, New Frontier, while the nationwide decline was 15% during the first week of September, at the state level, Nevada saw a drop of 32% in vape sales.
The Company’s cash position in Q1 is $14.9 million, compared to $17.6 million at July 31, 2019, a decrease of 15%. The current cash position continues to maintain a high cash-per-share position. Working capital was $21.4 million,