CannaRoyalty Corp (OTCMKTS:ORHOF) Turns in the Numbers

CannaRoyalty Corp (OTCMKTS:ORHOF) Turns in the Numbers


CannaRoyalty Corp (OTCMKTS:ORHOF) just announced its financial results for the three and nine-month periods ended September 30, 2019.

According to the release, the company increased its cannabis cultivation capacity approximately threefold. This continued expansion drove additional revenues and improved margins through the sale of ultra-premium flower. In addition, it streamlined brand portfolio to focus on category winners including the onboarding of more Cresco products to leverage the planned California marketing launch by Cresco in Q4-2019.

CannaRoyalty Corp (OTCMKTS:ORHOF) trumpets itself as a private equity firm specializing in acquisitions. The firm invests in the legal cannabis sector with a focus on research and intellectual property, consumer brands, and industry infrastructure. It seeks to invest in the United States and Canada. CannaRoyalty Corp. is headquartered in Ottawa, Canada.

The company is doing business as Origin House.

Origin House is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands.

The Company’s foundation is in California, the world’s largest regulated cannabis market, where it delivers over 130 branded cannabis products to the majority of licensed dispensaries.

Origin House’s brand development platform is operated out of five licensed facilities located across California, and provides distribution, manufacturing, cultivation and marketing services for its brand partners. The Company is actively developing infrastructure to support the proliferation of its brands internationally, initially through its acquisition of Canadian retailer 180 Smoke.

Origin House’s Common Shares currently trade on the Canadian Securities Exchange (CSE) under the symbol “CRZ” and will trade under the symbol “OH” effective October 23, 2018. Origin House is the registered business name of CannaRoyalty Corp.

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As noted above, ORHOF just announced strong financial results for the three and nine-month periods ended September 30, 2019.

Recent action has seen 20% during the past week in terms of shareholder gains in the stock. Furthermore, the stock has benefitted from a jump in recent trading volume to the tune of 14% over the long run average.

Marc Lustig, Chairman and CEO of Origin House commented, “I am very proud of our team’s performance during the first nine months of 2019, with revenue of $55.3 million up more than five-fold from the same period last year. Our growth during Q3 speaks to the strength of the organization, given the dedication of substantial resources to the Cresco Labs arrangement transaction and headwinds from the vape crisis, which impacted both our California and Canadian operations. Even more importantly, we drove continued gross margin improvement during the quarter. We have substantial room to continue expanding revenue and margins over time, driven by a threefold increase in ultra-premium flower capacity at our FloraCal and Cub City facilities, the streamlining of vendor relationships to focus on category winners, and a steady increase in capacity utilization at our facilities in California.”

At this time, carrying a capital value in the market of $242M, ORHOF has a significant war chest ($31.7M) of cash on the books, which stands against about $103.1M in total current liabilities. One should also note that debt has been growing over recent quarters. ORHOF is pulling in trailing 12-month revenues of $63.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 243.9%. We will update the story again as soon as developments transpire. Sign-up for continuing coverage on shares of $ORHOF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $ORHOF, either long or short, and we have not been compensated for this article.

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