There are so many cannabis-related companies still in the development phase, yet some market caps are through the roof! Finally, another cannabis company began achieving revenues. GB Sciences, Inc. (OTC:GBLX) has been using the last year or more constructing what is striving to be 'the cleanest grow facility in the business'.
Beyond the existing Las Vegas, Nevada facility that GBLX has in place, the company is expanding.
Kevin Kuethe, VP Operations for GB Sciences says that "within the next six months, we expect to complete the Phase II expansion of the facility from 200 lights to over 600 lights," which is estimated to triple the company's production and increase their harvesting frequency tremendously.
First Harvest for GB Sciences
GB Sciences just announced that the company harvested its first cannabis crop, and sold 63 pounds of their premium flower. GB Sciences, Inc. held back an additional 66.5 pounds for converting it into medical grade oil.
(Photo Credit - Andres Rodriguez)
According to GB Sciences, the medical grade cannabis oils are "for scientific research and medical use." Cannabis oils tend to have far higher margins than standard dried flower. Since high quality oils can be made from trim and parts leftover from premium buds, there is less waste and therefore higher margins.
We recently saw this phenomenon as cannabis oils pushed out record revenues at Aurora Cannabis Inc. (TSXV:ACB) (OTC:ACBFF), a Canadian licensed producer of medical marijauna.
Financial Projections for GB Sciences
Based on GB Sciences' conservative financial estimates and production rate, the company is projecting revenues of $2.8 million through December 31, 2017, and expects to complete its full fiscal year projections within the next few months. If achieved, that would be quite early due to GBLX's fiscal year ending on March 31, 2018.
This would be good for GBLX, since as of the period ending December 31, 2016, there was just over $1.2 million in current liabilities on the company's balance sheet.
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