Delta 9 reports net loss

While Delta 9 (NINE.V) reported significant growth in revenue and gross profit, its overall bottom line was in the red. The company reported a loss per share of $0.03 compared to a loss per share of $0.01 in the corresponding quarter in 2017.

Delta 9 Reports Loss due to Rising Expansion-Related Expenses

Increased expenses

The company’s larger year-over-year losses resulted from an increase in operating expenses. Its general and administrative expenses grew ~70% to $2 million from $1.2 million a year ago. The company’s sales and marketing expenses almost doubled to $265,332 from $108,797 a year ago, while the company had stock-based compensation expenses of $521,598 during the second quarter compared to none in the second quarter of 2017.

The company stated that management expects the losses to decrease following recreational cannabis legalization, which will likely drive sales and expand the company’s profitability. These losses have been a common theme for other companies such as Canopy Growth (WEED) (CGC), Aurora Cannabis (ACB) (ACBFF), and Aphria (APHQF) where expenses outweigh sales. Companies are incurring these expenses to secure future sales after the planned legalization of recreational cannabis (MJ) in Canada on October 17.

As for capital expenditure, the company continues to invest in capacity expansion projects along with retail brick and mortar locations for which the company has secured a license in the province of Manitoba.

Get more updates on Market Realist’s sector page.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

172.31.59.107