Cannabis Strategic Ventures (OTCMKTS:NUGS) has announced that in April, it experienced record monthly pot sales as well as record quarter-over-quarter growth in cannabis sales. The company’s gross sales for the month on an annualized based were over $6 million, which is close to 400% over monthly sales recorded in Q1.
The recent expansion of production capacity bears fruits with sells growing 400%
The company’s CEO Simon Yu indicated that the increase in sales will help the company in contextualizing its previous announcement to expand its production capacity. The company recently announced an expansion of its production capacity by 88% at the NUGS Farm, increasing production to around 150%. Without any setback, the company indicated that it could produce up to 2,000 pounds in the next 60 days and also the same amount of cannabis in the subsequent 60 days.
Yu indicated that demand is currently very high, and it might not be a result of then coronavirus lockdowns. He explained that the high demand was a result of an improving market is a robust fundamental growth boom. The CEO indicated that Cannabis Strategic Ventures has been establishing wider connections in terms of supply chain, and they are poised to take advantage of a market that is experiencing strong demand growth.
The boom in demand expected to boost the growth of the company
Regarding the expansion of production, the CEO alluded that they want to leverage the market boom because of positive pricing trends. Going into spring and summer, the company will capitalize on seasonal; distribution factors and the growth in demand to rack more sales. The company is about to launch its new branded product line that is expected to boost margins, and thus the right time to expand is now.
Management indicates that the company has been finalizing sales every week and has been finishing its inventory every week. Similarly, Cannabis Strategic Ventures has been conducting upgrades and strategic analysis every month to drive shareholder value. The company’s expanded output and capacity are expected to drive revenue growth going forward.
Published at Wed, 13 May 2020 12:15:26 +0000