It has not been a particularly great time for many cannabis producers in recent times and the Lotus Ventures Inc (OTCMKTS:LTTSF) stock has not been an exception in this regard. Yesterday, the Canadian cannabis producing company as in the news after it announced that its financial results for the full year 2021.
Trading Data
On Thursday, LTTSF stock slid 16.33% to $0.0251 with more than 110 shares, compared to its average volume of 531 shares. The stock has moved within a range of $0.0251 – 0.0251 after opening trade at $0.0251.
Earnings Recap
However, the announcement did not come as a source of optimism for investors and the stock ended up with a decline of as much as 16% amidst a heavy selloff. In this situation, it could be important for investors to take a look at some of the headline numbers.
First and foremost, it should be noted that it was the second year running that Lotus Ventures managed to record a profit in the fiscal year that ended on August 31, 2021.
The revenues for the full year came in at $5.4 million and that reflected a year on year rise of as much as 18%. However, in the fourth fiscal quarter, the revenues stood at $1.2 million and that reflected a year on year drop. The profitability of the company makes it one of the rare cases in the cannabis industry in Canada.
Key Quote
“Lotus’ continued growth this year demonstrates our operating strength and resilience, and it couldn’t be done without the commitment from our whole team,” said Dale McClanaghan, President & CEO, Lotus. “Our Fiscal 2021 was a year of modest growth, as we sold over 2 million grams of cannabis and reached the milestone of $10 million in sales since we first started two years ago. Fueled by our expansion growth in the North Okanagan, we are excited to invest in additional growing capacity to expand our premium cannabis portfolio and supply more unique and premium strains like our Kalifornia in the new year.”
Technical Data
LTTSF stock is below the 20-Day and 50-Day Moving averages of $0.0599 and $0.0812 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.1096. The stock is down 68% in the past week.
