- MCOA’s Q3 2021 revenue increased 731% year on year from $53,195 in Q3 2020 to $442,178 in Q3 2021
- The company attributed this growth to its recent acquisition of cDistro, one of the fastest-growing distributors in North America
- cDistro’s acquisition is part of a strategic shift as the company looks to expand into new areas within the cannabis industry
- MCOA expects another record-breaking quarter in Q4 2021 as it anticipates reporting a full quarter of revenue from VBF Brands Inc., its newly acquired cultivation facility in Salinas, California
Marijuana Company of America (OTC: MCOA), a diversified holding company looking to grow its business and further establish itself in the legalized cannabis THC, hemp, and cannabidiol (“CBD”) industries, recently reported the highest quarterly revenue in its history (https://cnw.fm/CzXNG).
As part of the financial results for three months ended September 30, 2021 (“Q3 2021”), the company reported $442,178 in revenue, up from $53,195 in revenue reported in Q3 2020. This represented a 731% year-on-year increase. In addition, the company’s gross profits grew by 297%, from $16,025 reported in Q3 2020 to $63,687 in the most recent quarter.
“During the third quarter 2021, despite the fact that we have been in the midst of a global pandemic, the company produced the highest revenues in its history,” said MCOA CEO Jesus Quintero. “Our Q3 financial performance was strong and reflects our ability, despite being in a challenging environment, to execute on the strategy by diversifying within the Cannabis industry through strategic acquisitions along with organic growth.”
MCOA attributes the growth in revenue and gross profits to its new acquisition of cDistro, a company that distributes CBD brands, smoke and vape shop-related products to wholesalers, c-stores, specialty retailers, and consumers in North America. Completed toward the end of Q2 2021, the acquisition positioned MCOA to take advantage of immediate revenue and provided a massive opportunity for the company to establish a significant market share in the specialty distribution space (https://cnw.fm/LmPM0).
Notably, cDistro’s acquisition is part of several investments the company has made to enhance its value proposition as well as drive its expansion into new areas within the cannabis industry.
In August this year, MCOA announced a strategic shift in its business strategy as it expands into the legalized cannabis THC industry (https://cnw.fm/LSjfB). This move was reflected by the direct investment interest in Natural Plant Extract (“NPE”), an operator of licensed cannabis manufacturing and distribution business in California; potential acquisitions; and THC-oriented strategic partnerships with Cannabis Global Inc and Eco Innovation Group.
Moreover, MCOA also announced its financial results for the nine months ended September 30, 2021. Total revenues grew 127% to $493,988 in 2021 up from $217,972 in 2020. The company attributed this increase to $407,589 of product sales from cDistro. MCOA also recorded $12,581 in equipment lease revenues and $73,818 from the sale of organic, plant-based hempsmart(TM) products, including Smart Drops (CBD Drops), Neuro Smart (Patented Brain Pills), and Smart Cream (Pain Cream).
“We are confident that the steps we are taking will enable us to maintain a growing strong position as we drive growth across the entire business and maximize value for our stakeholders over the long term. Our expectation is that we should have another record-breaking quarter in Q4 2021, since we will report a full quarter of revenue from [VBF Brands Inc.] our newly acquired cultivation facility in Salinas, California,” added Quintero.
The company started out in 2015 as a research and development (“R&D”) company focused exclusively on CBD. However, according to CEO Jesus Quintero, who presented during the October Benzinga Cannabis Capital Conference (https://cnw.fm/Az0CM), MCOA has undergone “an exciting transition.” The company is currently expanding to become an incubator of cannabis business opportunities as it seeks to grow “more vertically than horizontally.”
MCOA is also expanding itself in the international market with a presence in South America through its new subsidiaries, hempsmart Brazil and hempsmart Uruguay.
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com.
NOTE TO INVESTORS: The latest news and updates relating to MCOA are available in the company’s newsroom at http://cnw.fm/MCOA
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