We’ve been following General Cannabis Corp. (OTCMKTS:CANN) for quite some time, in keeping with our penchant for the legal and medical marijuana industries. The company has been around for awhile, and recently reported positive growth that set company records.
In addition to increase year-over-year quarterly revenues, General Cannabis also reported a number of different statistics for each of its various divisions, and most of the highlights were rather promising.
General Cannabis Corp. (OTCMKTS:CANN), which refers to itself as ‘the comprehensive national resource to the regulated cannabis industry’, recently announced financial results for the third quarter of 2017.
For the three months ended September 30, 2017, CANN reported its highest quarterly revenues on record of approximately $980,000, representing an increase of 21% in total revenues when compared to the three months ended September 30, 2016. Total revenues for the nine months ended September 30, 2017, increased 15% when compared to the nine months ended September 30, 2016.
These increases were driven by record revenues in the company’s Operations segment, Next Big Crop, which had increased revenues of 210% and 227%, respectively, for the three and nine months ended September 30, 2017, compared to the same periods for 2016. As the number of states with regulated marijuana markets have increased, Next Big Crop has found a steady increase in demand for its services.
CANN’s Marketing segment, Chiefton, experienced 54% and 26%, respectively, decreases in revenue during the three and nine months ended September 30, 2017 when compared to 2016. Its focus on launching its design agency led to a drop in apparel sales and an increase in consulting revenue. The company also added a new managing director in August 2017 to focus on our apparel business, and planning a winter line for the 2017 holiday season and a spring / summer line for 2018.
Finally, the company’s Security segment, Iron Protection Group, experienced 5% and 17%, respectively, decreases in revenue during the three and nine months ended September 30, 2017 when compared to 2016. As previously discussed, IPG is impacted by the drop in wholesale cannabis prices in Colorado. In late August 2017, CANN acquired Mile High Protection Services, which provided the opportunity to expand its security business into the non-cannabis space, as the company believes that market provides an opportunity for growth. In October 2017, CANN obtained a license to operate in California, and expects IPG to see significant growth in that market in the next year.
“Next Big Crop continues to generate record revenues in 2017,” said Robert Frichtel, Chief Executive Officer of General Cannabis. “With the expanded legalization of medical and recreational cannabis in numerous states, Next Big Crop’s services are in high demand to assist companies submitting applications to acquire licenses, and to provide operational consulting and products.”
“We remain focused on managing discretionary spending throughout the quarter and enter the end of the year poised for growth,” Frichtel added. “We continue to spend on infrastructure and people that will drive future profitability. We are committed to building and expanding the best platform in the regulated cannabis industry and providing our customers with the highest quality services.”
Unlike many cannabis companies out there that are limited to growing only, CANN boasts a well varied portfolio, which is the primary driver of interest for us. We’ll be sure to stay on top of the CANN story on your behalf. Stay locked to Street Register for updates, and we’ll deliver important developments on CANN as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in CANN stock, short or long.