Cann Group continued its revenue growth in FY23 as sales for the nine months to March approached A$10 million.
The figure was double that of the same period last year with Q3 revenue rising 219% to $4m, the company reported.
But its net loss from operating activities deepened in the quarter to $5.7m, up from $4.2m last year, taking the nine-month deficit to $16.4m.
Product, manufacturing and operating costs climbed from $7.5m to $12m in the financial year to March, while staff expenses jumped from $7.1m to $9.5m.
The increased costs follow a rise in production volume at its Mildura facility.
The company said it was preparing to double its current output in May, in line with the growth strategy outlined earlier this month by chief executive Peter Koetsier.
“This, combined with the introduction of several new cultivars in August, puts Cann in a very strong position to respond to increasing demand for flower sales,” the company told the ASX.
Biomass production grew 69% in the March quarter for inhaled flower and 19% for extraction-grade flower.
Meanwhile, Cann said it was continuing to review its schedule 3 registration strategy with GSK consumer healthcare division Haleon following the failure of its low-dose CBD Satipharm product to show statistically different results to a placebo.
The final trial report has yet to be completed but will be “carefully reviewed” once received, it said.
Regardless of the outcome, Cann Group said the Satipharm platform remains a “valuable and unique” opportunity with a number of cannabinoid formulations under development.
Cann Group shares are trading at $0.15, giving the company a market capitalisation of $60m.
