The Newstrike Resources (OTCPK: NWKRF) earnings release, highlights its aggressive growth plans for this year. The Canada-based licensed producer and cultivator of medical cannabis, has also generated a massive amount of cash in the latest quarter supporting its aggressive growth plans. The company’s first-quarter results also demonstrated that its business growth strategies are working.
Its cash and stock equivalents increased to $88.0 million at the end of the first quarter from $24 million in the prior year period. Newstrike Resources received $9.5 million in the first quarter for termination fee from CanniMed Therapeutics Inc. (CMMDF). It has also completed $86.0 million bought-deal equity offering.
“We achieved a number of important financial and operational milestones during and subsequent to the first quarter of 2018,” Commented Jay Wilgar, Chief Executive Officer. “Most importantly, we are confident we are now sufficiently financed to execute our business plan and growth strategies aggressively.”
Newstrike Resources – Growth Activities and Financial Numbers
The company has been investing aggressively in growth opportunities to expand their sales growth and market share.
Newstrike Resources received a cultivation license at its Niagara facility, and it has built up a dried and finished goods cannabis inventory of $5.8 million at the end of the first quarter. The company believes these activities are setting its footprints to capitalize on potential demand from the adult market.
Its current cannabis production facilities have 167,600 square feet of greenhouse and indoor production capacity. Newstrike Resources also announced several strategic agreements in the past few months to expand its distribution channels.
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Its sales were standing close to $10 million in the first quarter while earnings per share were at $0.01. The company expects its sales to increase at a high double-digital rate in the following quarter amid its investment in growth opportunities.
Featured Image: newstrike.ca
