Icanic Brands Company Inc (OTCMKTS: ICNAF), a Multi-State Operator (MSO) of premium Cannabis brands, reported record quarterly financial results for the three months ended April 30, 2021. The company reported a record 3Q2021 revenue of $3.23 million, an increase of 11.7% QoQ, and 88.4% YoY. In addition, it reported a gross margin of 48.1%, a significant improvement compared to 16.3% in 3Q2020. Icanic’s gross profit for the period was $1.55 million, almost doubled YoY and 30.6% increase QoQ. As a result, the company reported a net income of $0.2 million, which compares to a sequential net loss of $0.51 million. Adjusted EBITDA for 3Q2021 stood at $0.543 million, suggesting an almost five-fold QoQ increase.
Mr. Brandon Kou, Chief Executive Officer of Icanic, mentioned that 3Q2021 was a record quarter for the company, representing the team’s hard work resulting in significant improvements in operational efficiency and record gross margins. Icanic’s management committed to revamping operational focus and improving and setting up the business for the future. Kou also acknowledged the addition of the De Krown team, which brings experience and expertise to grow manufacturing partner relationships and Icanic’s branded product portfolio. The CEO reinstated that the management is exploring opportunities to improve business organically and acquisitively with a solid foundation in place. The team is committed to making the company a leader in the California cannabis space.
Icanic completed the acquisition of a California-based manufacturing partner and brand owner, De Krown Enterprises, whose manufacturing clients list include Cali Innovations, Dahlia Capital, Pure Beauty, Smoakland, Tyson Ranch, and Viola, among others. The company also entered a joint venture agreement with a California-based edibles company, Heavenly Sweet, for expansion in Nevada. The joint venture will leverage Icanic’s North Las Vegas manufacturing facility for Heavenly Sweet’s product manufacturing and distribution to Nevada. Heavenly Sweet’s product portfolio includes a variety of ready-to-eat cannabis-infused products.
The company also improved supply chain agreements with leading producers in California to achieve 60% gross margin targets. Icanic also introduced six new GanjaGold SKUs focusing on pre-rolls and multi-packs for the California market. The company’s wholly-owned subsidiary, Ganja Gold, Inc., produces connoisseur level pre-rolls of unmatched quality by sorting only the best available flower and concentrates.