Medical Marijuana Inc., one of the few publicly traded companies in the MMJ industry, swung to a profit in the second quarter on increased revenue tied to its purchase of Dixie Elixirs & Edibles and CanCHEW Bio-Technologies.
The positive results are particularly notable because they come while the industry is struggling on many fronts and cannabis businesses are closing left and right. The industry should take heart that some businesses are growing despite the dark cloud hovering over MMJ.
Medical Marijuana Inc. reported that second-quarter net income hit $1.5 million versus a loss of $1.3 million a year earlier. Revenue for the April-June period rose to $2.4 million compared with $196,748 in the second quarter of 2011.
The company’s stock, which trades on the over-the-counter market under the symbol MJNA, rose 32% on the news to close at 4.5 cents.
The latest figures include the financial performance of Denver-based Dixie, which ranks as one of the biggest players in the infused-products sector. During the quarter, Medical Marijuana Inc. – which oversees a portfolio of MMJ-related companies – also completed its acquisition of CanCHEW, started clinical development on five products and began laying the groundwork to expand abroad, among other accomplishments.
The company’s revenue and earnings – not to mention its share price – are paltry when compared to publicly traded firms in other sectors. But Medical Marijuana Inc. is one of the larger MMJ players with public stock and hopes to carve out a niche for the industry on Wall Street.
Here’s a chart showing the company’s improvement over the past year:
The company believes this is just the start of something much bigger, though it continues to operate in a very difficult business climate.
“The second quarter of 2012 cemented Medical Marijuana Inc.’s path,” Michael Llamas, the company’s president, said in a release. “As witnessed by our strong quarter-over-quarter and year-over-year growth, there is tremendous opportunity in this industry and that opportunity is growing rapidly at home and abroad.”
Medical Marijuana Inc. also announced today that it has secured a $2 million line of credit.