Cannabis operator LEEF Brands, Inc. LEEF LEEEF announced its financial results for the three months ended Sept. 30, 2024, with revenue of $6.76 million, compared to $5.67 million for the same period last year.

The British Columbia-based company noted the increase in revenue was primarily due to market pricing changes and a focus on boosting margins and positive operating cash flow. Its customer base has increased with expansion into other verticals as well as the acquisition of The Leaf in January 2023.

“I’m proud of our team for driving positive momentum this quarter, making substantial progress on key initiatives, innovations and infrastructure upgrades, including the completion of Phase 1 construction at Salisbury Canyon Ranch,” stated CEO Micah Anderson. “This 1,900-acre ranch with a 187-acre cultivation permit, positions us for our first planting in spring 2025. Additionally, we’ve invested significantly in our extraction technology, increasing our overall capacity by 32%, which will enable larger product output in the coming year. We’re optimistic about the opportunities ahead and excited about the strong foundation we’re building for 2025.”

Read Also: Weedmaps Net Income Surges 312% YOY, Cash Reserves Up 31%

Get Benzinga’s exclusive analysis and the top news about the cannabis industry and markets daily in your inbox for free. Subscribe to our newsletter here. If you’re serious about the business, you can’t afford to miss out.

Financial Highlights:

• Net loss amounted to $3.19 million, compared to a net loss of $1.99 million in the same period last year.
• Gross profit of $1.5 million, representing a gross margin of 22%, compared to gross profit of $1.86 million, representing a gross margin of 33% for the same period of 2023. The decrease in gross profit margin percentage the company attributed primarily to pricing compression within the market and an inventory impairment of approximately $425,000 recorded in September 2024.
• Adjusted EBITDA was a loss of $1.79 million, compared to adjusted EBITDA gain of $224,495 in the third quarter of 2023.
• Total operating expenses for the three months ended Sept. 30, 2024 were $3.87 million, a 32% increase from $2.93 million in the same period of 2023.
• The company had a cash balance and total assets of $2.16 million and $45.07 million, respectively, as of Sept. 30, 2024.

“We continue to focus on our long-term financial health and strategic growth, which includes the phase 1 completion of Salisbury Canyon Ranch, as well as innovating in how we manage assets and payment systems,” stated CFO Kevin Wilson. “This quarter, the company acquired Bitcoin cryptocurrency in a business-to-business transaction which marks the beginning of a larger strategy of integrating LEEF Brands into the Bitcoin Ecosystem. This is a milestone that reflects our commitment to forward-looking financial strategies. Despite the industry challenges, our focus remains on increasing efficiency and positioning LEEF for success as we move forward.”

LEEF Brands recently announced a 10-for-1 share consolidation of its common shares and a proposed private placement to raise up to CA$2.5 million ($1.8 million). Upon completion of the consolidation, LEEF will have approximately 162,762,651 common shares issued and outstanding, subject to rounding adjustments. The consolidation will take effect Nov. 18, 2024 with trading expected to begin on a consolidated basis on the Canadian Securities Exchange and OTCQB on Nov. 18th, 2024.

Price Action

LEEF Brands shares closed Tuesday’s market session 12% higher at $0.014 per share.

Read Next:

Photo: Courtesy of SD_FlowerPower via Shutterstock