Delta 9 Cannabis Inc (TSXV:DN) (OTCQX:VRNDF) posted record Q2 earnings yesterday ahead of being listed on the TSX. Delta 9 stock is up 10% as a result.
Eyewatering Gains
The company posted eyewatering gains in its most recent earnings, compared to the previous quarter and for the same period last year. Revenue of $8.9 million CAD is a massive increase of 1,142% compared to $715,746 CAD reported in Q2 last year. Compare it with the first quarter of this year, where revenue was $5,632,184 CAD, and that's another significant increase of 58%. Gross profit is up 973% from last year, to $4.8 million CAD, and Delta 9 stock now looks excellently positioned heading towards legalization 2.0.
"I think there's been a lot of good storytelling in the cannabis space to date, but as far as Delta 9 is concerned, we want our financial results to tell the story," said CEO John Arbuthnot in this morning's press release. Delta 9 stock could be set for a further boost as the company has also been conditionally approved to uplist to the TSX. Delta 9 stock is currently valued at $0.85 a share, which, off the back of these results, looks like a steal.
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Investors Bullish on Delta 9 Stock
The first half of the year also saw some promising operational highlights for the company, which have investors feeling very bullish about Delta 9 stock. It received approval from Health Canada to increase its number of grow pods by 31% to 202. This allows for an increased production capacity of over 5,350 kilos of dried cannabis, which is a substantial jump for a company that holds a 40% market share in its home province of Manitoba.
Looking toward Q3 also seems very promising for Delta 9 stock as the company is set to open its fourth brick-and-mortar store in Thompson, Manitoba. The number of physical locations should grow rapidly in the coming months and years as Delta 9 Cannabis has also received approval to expand into Saskatchewan and Alberta. Right now, the future looks very rosy for investors in Delta 9 shares, and this was reiterated by Arbuthnot: "From my standpoint, I can't wait to see where the company is 12 months from now."
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