CannaRoyalty Corp (OTC: ORHOF), a Canadian cannabis company that operates under the Origin House brand name, reported first-quarter results Wednesday that showed substantial revenue growth — and expenses that grew proportionately higher.
What Happened
The company's revenue of CA$11.2 million ($8.29 million) was significantly higher than CA$600,000 a year earlier and grew by 41 percent sequentially.
Origin House's gross margin amounted to C$A1.7 million in the quarter versus a flat figure in the same period of 2018.
Operating expenses surged from CA$4.5 million a year ago to CA$18.2 million, and the adjusted EBITDA loss widened from CA$900,000 to CA$12.7 million.
Why It's Important
Origin House has operations both in Canada and California. The company's revenue growth was helped by a substantial increase in California sales.
During the first quarter, Origin House saw CA$9.25 million in product sales in California versus CA$1.55 million in Canada.
View more earnings on ORHOF
The company is in the process of being acquired by Cresco Labs Inc (OTC: CRLBF), which at the beginning of April agreed to acquire Origin for around $1.1 billion in an all-stock deal.
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Photo courtesy of Origin House.
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