Nova Cannabis Inc. NOVC NVACF reported sound annual audited consolidated financial statements and management report for the year ended December 31, 2021.
Fourth Quarter 2021 Financial Highlights
- Sales of $47.6 million, an increase of 175.9% compared to the fourth quarter of 2020 and an increase of 23.2% compared to the third quarter of 2021.
- Gross profit of $8.4 million, i.e. 17.7% of sales, an increase of 58% compared to the fourth quarter of 2020 and an increase of 29.0% compared to the third quarter of 2021.
Fourth Quarter 2021 Operational Update
Nova now has 78 stores open, an increase of 44 stores since December 31, 2020, and all former Nova-branded stores have been converted to Value Buds.
2021 Financial Highlights
- Sales of $134.4 millionan increase of 112.2% from $63.3 million in 2020.
- Gross profit of $24.9 million, or 18.5% of sales, an increase of 19.7% from $20.8 million in 2020.
- Cash increased $9.3 million at $10.5 million as of December 31, 2021.
“We launched Value Buds in 2021 to give cannabis consumers in Canada a better option, and the traction of our store format has been a resounding success.” Darren Karasiuk, CEO of Nova, noted. “Once again, we delivered strong sequential and year-over-year sales growth for the quarter and now have 78 stores open in Alberta, Saskatchewan and Ontario.”
Sundial Acquisition of Alcana
On October 7, 2021, Sundial Growers Inc. SNDL entered into an arrangement agreement to acquire all of the issued and outstanding common shares of Alcanna Inc., the majority shareholder of Nova.
On February 25, 2022, Alcanna and Sundial mutually agreed to extend the closing date of the Sundial-Alcanna Transaction to March 30, 2022 pursuant to the terms of the Arrangement Agreement in order to complete the required closing matters contemplated by the arrangement agreement.
“Following Sundial’s impending acquisition of our majority shareholder, Alcanna, we will gain a cannabis-focused partner that is committed to supporting our value-based model with the infrastructure and financial resources to drive the expansion. of our disruptive strategy on a much larger scale,” Karasiuk added.
Photo: Courtesy of Giorgio Trovato on Unsplash