Another Canadian cannabis company reported its financial results today. Origin House (CSE: OH) announced that it had seen record Q4 revenue figures of $7.9 million, a 19 percent increase in comparison the previous quarter as well as a 638 percent increase in comparison to last year.
In what has become a common trend among cannabis company’s financial results, Origin House has seen drastic growth over the past year. Currently, the company has six licenses, eight facilities, and over 350 employees between Canada and California, with pro-forma revenues exceeding $48.7 million.
“During 2018, Origin House delivered demonstrable value creation for shareholders through organic execution, judicious acquisitions and the crystallization of value embedded in non-core assets. Throughout the year, we continued to aggressively build our platform of brands and distribution capability focused in California, and this culminated in reaching a definitive agreement to be acquired by Cresco Labs for $1.1 billion on April 1, 2019,” said Marc Lustig, CEO of Origin House. “This partnership is just the beginning of our journey together. The combined entity will be a U.S. distribution powerhouse, with a growing portfolio of over 50 brands on the shelves of over 725 dispensaries across 11 states. In the coming months we will work side-by-side with the Cresco team to accelerate recognition and sales for our combined brand portfolios across the U.S., and in the process, continue to build substantial shareholder value.”
Origin House made news earlier in March when it was acquired by Cresco Labs in a deal worth over $1.1 billion. The transaction represents another billion-plus-dollar merger in the cannabis sector, a trend which is expected to continue to grow over throughout 2019 and 2020.
“We are very pleased with the performance our team generated in 2018. We spent the past 12 months successfully implementing our strategy to build a platform of premium brands by creating the top distribution and brand support platform in California. Our team executed and successfully integrated five acquisitions during the year, while adding several key experiential brands to our Brand Accelerator and distribution platform,” added Origin House President Afzal Hasan. “In March 2019, with the integration of our two distribution companies under the Continuum banner, Origin House now controls one of the top state-wide distribution networks in California. With 2018’s regulatory growing pains behind us and a recent commitment on the part of the government to redouble its efforts to quash the still-thriving illegal cannabis market in the state, Origin House is off to a running start in early 2019. Our pipeline of potential brand partners is more robust than at any point in our recent history and our ability to leverage a fully integrated network, positions us to win California while generating strong performance for our brand partners as well as for shareholders.”
Shares of the company, whose market cap is under one billion and still has the potential for tremendous growth, increased only mildly in response to the news. Today saw a 2.7 percent increase for Origin House’s shares.
Origin House Company Profile
Origin House is a growing cannabis product and brands company operating across key markets in the U.S. and Canada. The company delivers over 130 branded cannabis products to the licensed dispensaries. It provides distribution, manufacturing, cultivation and marketing services for its brand partners. – Warrior Trading News