Speakeasy Cannabis Club Ltd (OTCMKTS:SPBBF) reported revenues of $723,740 from the sale of flower in Q2 2021. Its operating expenses declined by 11% YoY to $1.867 million in Q2 2021.
CEO of Speakeasy, Malcolm Davidson said the company is excited to post its first earnings in Q2 2021. It is a great achievement for the company despite the challenging environment for cannabis firms and the prevailing uncertainty.
Davidson said the team at Speakeasy put in significant efforts to improve value for the shareholders. The company successfully transitioned to a revenue-generating company.
Outlook for Q3 2021
Speakeasy expects to report a growth of 33% in Q3 2021 in indoor flower production. It will commence the shipment of concentrates in the first week of April 2021. The company will enhance the production of pre-roll to satisfy the supply orders.
Expects to receive an amended sales license
Speakeasy will receive an amended sales license for concentrates and extracts soon. Marc Green, the founder of Speakeasy, said the demand for concentrates and extracts is growing rapidly in Canada. It expects to get a sales license for these products to commence sale.
Speakeasy has vast amounts of flower, which is sufficient to create concentrates and extracts. It plans to enter the cannabis market by offering products at affordable rates because of economies of production.
The market for cannabis products in Canada is improving and expects demand for value-added products, just like in North America. As per the data obtained from Health Canada, the sales of cannabis extracts are improved by 360% during October and November of 2019 and 2020.
According to the data provided by Grand View Research, the annual sales of cannabis extracts across the world are $7.3 billion and grow at a CAGR of 16.6%.
The access to value-added products and cannabis extracts for people in Canada improves with the growing number of dispensaries.
The high cost of production and taxes pose a challenge to the industries to offer cannabis products at reduced rates.
Speakeasy possesses a license for the sale of dried flower to Canadians. The amended sales license allows the company to capitalize on the burgeoning opportunity by offering a wide range of products like live resin vape carts and artisan-style concentrates.