iAnthus Capital Holdings, Inc. (CSE:IAN) (OTCQX:ITHUF) posted its second-quarter results yesterday, with iAnthus stock dropping 3.5%.
iAnthus, which owns and operates licensed cannabis cultivation, processing, and dispensary facilities throughout the US, posted revenue of $19.2 million USD for the three months ended June 30. This is an increase of 99.58% from the same period last year; however, expenses also increased by 52.15% from Q2 last year to $35.25 million USD. Overall, the company posted a net loss of $9.29 million for the quarter, which has sent iAnthus stock down over 3.5% during Tuesday trading.
These losses are not all bad news for investors in iAnthus stock, as CEO Hadley Ford made this assessment in a statement yesterday: "We continue to generate operational efficiencies without limiting growth. This is evidenced by our 35% sequential revenue growth, expanding gross margins and limited incremental G&A expenses. We are proud of our accomplishments thus far. Since opening our first Florida dispensary in December 2018, we have grown our market share to 3.5% and we are the third highest in the state in terms of THC volume per store."
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iAnthus stock is currently valued at $2.44, which is nearly a 60% drop off from a February high of 5.98. These losses can largely be attributed to the company increasing its expenditure and debt capacity as it looks to create sustainable growth while expanding further across the US. iAnthus Capital has announced plans to expand into greenfield markets such as New York and New Jersey, with the company opening its flagship BE. store in Brooklyn this fall.
iAnthus Capital Holdings currently has operations in 11 states and operates 26 dispensaries and also has overseas operations following its merger with MPX in July. The merger between iAnthus and MPX, which is essentially a $500 million USD acquisition by the former, allows MPX to operate in several international markets such as Australia, South Africa, Malta, Switzerland, England, and Israel. While iAnthus stock is prone to fluctuations, at just $2.44 and with big plans for the future, maybe it's one pot stock worth keeping an eye on.
Featured image: DepositPhotos © suriyaphoto
