Boston, MA, Oct. 19, 2022 (GLOBE NEWSWIRE) — via InvestorWire — AmeriCann Inc. (ACAN), a cannabis company that develops state-of-the-art cultivation, product manufacturing and distribution facilities, provided financial and operational updates for its Massachusetts cannabis cultivation, product manufacturing, and distribution campus.
The Company achieved a significant increase in year-over-year revenue, increasing over 44% for the year ending September 2022 relative to the year ended September 30, 2021, an increase of over $900,000.
“We’re pleased with achieving record revenue for the quarter and for the strong top-line growth rate,” stated President Tim Keogh. “Our operating margins are very strong and we look forward to reporting our annual financial results by the end of 2022.”
The increase in financial performance is attributable to greater revenue received from products produced and manufactured at Building 1, the Company’s initial building at its Massachusetts Cannabis Center development in Freetown, Massachusetts.
Building 1 is a 30,000-square-foot cultivation greenhouse and processing facility that utilizes AmeriCann’s proprietary “Cannopy” cultivation system. Building 1 is fully occupied by Bask Inc., an existing Massachusetts licensed vertically integrated cannabis operator.
AmeriCann receives base rent and a Revenue Participation Fee of 15% of all gross monthly sales of cannabis, cannabis-infused products and non-cannabis products produced at the Massachusetts Cannabis Center. As operations commenced and accelerated at Building 1, AmeriCann established many financial performance milestones.
A summary of operational highlights included the following:
- The Company achieved four consecutive quarters of increased, record setting revenue in the last year.
- AmeriCann’s Operating Revenue for the year ended September 30, 2022 increased over 44 % from prior year.
- The manufacturing of cannabis infused products, including the 1906 branded “Drops,” Howl’s Tincture, and Harpoon Extracts, have increased dramatically at the Massachusetts Cannabis Center. Sales of manufactured infused products are expected to be even stronger as continual increases in production and sales for 1906 “Drops” are realized.
- The 1906 branded “Drops” have been the top selling edible product in the Massachusetts market. Howl’s Tincture was the top selling brand in the tincture category.
- For the first 8 months of 2022, the revenue from the Massachusetts cannabis market was $1.165 billion which was 13% greater than the first 8 months of 2021. The annualized revenue estimate based on the first 8 months of 2022 is approx. $1.75 billion. Experts believe the market will exceed $1.8 billion annually.
- Total Massachusetts adult use cannabis sales have recently exceeded $3.5 billion since the inception of the Commonwealth’s regulated cannabis program.
AmeriCann (OTCQB:ACAN) is a cannabis company that develops cultivation, processing and product manufacturing facilities.
AmeriCann uses greenhouse technology which is superior to the current industry standard of growing cannabis in warehouse facilities under artificial lights. According to industry experts, by capturing natural sunlight, greenhouses use 25 percent fewer lights, and utility bills are up to 75 percent less than in typical warehouse cultivation facilities. As such, AmeriCann’s Cannopy System enables cannabis to be produced with a greatly reduced carbon footprint, making the final product less expensive. Additionally, greenhouse construction costs are nearly half of warehouse construction costs.
AmeriCann is also designing GMP Certified cannabis extraction and product manufacturing infrastructure. The Company has secured licenses to produce cannabis infused products including beverages, edibles, topicals and concentrates. AmeriCann plans to operate a Marijuana Product Manufacturing business at the Massachusetts Cannabis Center.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Registration Statement on Form S-1 which may be viewed at www.sec.gov.