Story was updated to include Sprott Inc., the previously unnamed institutional investor partnering with CannaRoyalty on its joint venture.
After only its second-ever quarter as a public company, a local marijuana holdings firm’s investments have brought in more than $1 million in revenue to date.
CannaRoyalty (CSE:CRZ) made its debut on the Canadian Securities Exchange in December after a reverse takeover bid. The company, which acts as an investment tool for Canadian and American stockholders looking to get a stake in the choppy waters of marijuana legalization, has built up its portfolio with a mix of 20 cannabis growers and related firms in the past few months.
Revenues, including product and service sales as well as royalties from its holdings, totalled $960,000 for the quarter ending June 30. The earnings are a jump over its first quarter of the year which saw revenues of roughly $300,000, bringing the six-month total to $1.3 million.
CannaRoyalty posted a net loss of $2.5 million in its second quarter, as compared to a loss of $2.1 million the quarter before. Cash and equivalents stood at $6.4 million at the end of the quarter.
"CannaRoyalty is positioned to drive shareholder value as the North American regulatory approach to cannabis evolves and as the Company continues to build its platform of complementary, value-add cannabis assets in key industry verticals," said Marc Lustig, CEO of CannaRoyalty, in a statement.
"During the second quarter, we continued to expand our balance sheet with targeted investments. We also announced partnerships with key cannabis and investment-industry leaders, further demonstrating that we are rapidly becoming a premier provider of capital and advisory services within the North American cannabis industry.”
The firm also secured a $12-million financing deal with asset management company Sprott Inc. this past quarter. The joint venture, Mr. Lustig said, will identify new investment opportunities in the growing Canadian cannabis market.