PHOENIX, Aug. 20, 2019 (GLOBE NEWSWIRE) -- Item 9 Labs Corp. (OTC: INLB) (“Item 9 Labs” or the “Company”), a leader in comfortable cannabis health solutions for the modern consumer, reported operating results on August 16, 2019 for the third quarter which ended June 30, 2019.
Item 9 Labs Corp. and its subsidiaries continued their revenue growth in the three month and nine month periods ending June 30, 2019. Operating efficiency increased dramatically as seen in the margins growth over the same periods compared to fiscal year 2018. The expansion of the Arizona facility, completed in March 2019, should prove to increase the efficiency and revenues beginning in Q4.
“Throughout this fiscal quarterly period ended June 30, 2019, we have exhibited exponential revenue growth and expansion of our business operations. We accomplished our construction initiatives for our core facilities in Nevada and Arizona, more than doubling our cultivation space allowing us to bring new and diverse product suites to market. In addition, we have solidified partnerships in North Dakota, keeping us on pace towards applying, and managing cultivation, processing, distribution, and dispensary operations in six to 10 U.S markets by the end of 2019,” said CEO Sara Gullickson.
“As a Company, we have achieved significant milestones on a national and local level, including filing our Form 10 Registration Statement, ranking as one of the fastest growing cannabis concentrate brands in Arizona, and receiving first place honors for the second consecutive at the ERRL Cup Awards for our Sativa flower strain. Moving forward, we intend to build upon this momentum and are grateful for our shareholders support,” Gullickson said
Chief Financial Officer Bobby Mikkelsen added, “Our Form 10 filing coupled with our solid financial results are evidence of our continued commitment to strategic growth as a fully reporting public company. In the final fiscal quarter, we remain focused on opportunities to enhance revenue growth, increase margins, and maximize shareholder value.”
Overview for the three months ending June 30, 2019, as compared to the three months ending June 30, 2018:
- Revenue increased 251% to $1,542,067.
- Operating margins increased to 55% from 14%.
- Pre-tax earnings of Item 9 Labs operating entities totaled $491,553.
- Net loss of $864,176.
- Diluted loss per share of $.01.
Overview for the nine months ending June 30, 2019 as compared to the nine months ending June 30, 2018:
- Revenue increased 284% to $3,627,951.
- Operating margins increased to 53% from 27%.
- Pre-tax earnings of Item 9 Labs operating entities totaled $987,962.
- Net loss of $2,077,363.
- Diluted loss per share of $.03.
Company Updates
- Filed Form 10 Registration Statement with the US Securities and Exchange Commission.
- Completed construction and received approval to operate on Arizona expansion , more than doubling cultivation space.
- Strive Grand Forks North Dakota opened on May 22nd, 2019 through strategic partnership.
- Construction broke ground on new corporate offices in downtown Phoenix.
- Kyle Jennings, vice president of marketing and Josh Buckheister, creative director were added to the team and began employment March 1st. The official release for their hiring was announced on June 28th.
Accomplishments
- Recorded largest sales month in Item 9 Labs history in April at $573,000.
- Record “420” sales, released April 20th promotional box with first look at broad spectrum cartridge, prepackaged jarred flower, and marketing collateral.
º The week prior to April 20 sales hit $218,000. - Successfully activated “On the Grass Music Festival” title sponsorship.
º 15,000 attendees.
º Item 9 Labs branded stages, 40 x 60 lounge, and VIP area.
º 470% increase in social media and web impressions week prior and immediately following event with 170,000 impressions, up from an average of 30,000 impressions.
º 100 exclusive Item 9 Labs festival boxes leveraged in partner dispensaries. - Secured three-year category exclusive sponsorship with Marquee Theater in Tempe, Arizona:
º Average of 115 shows per year.
º Average attendance of 1,500 per show with an expected annual attendance of more than 170,000.
º Item 9 Labs interior branding.
º Item 9 Labs inclusion on web, print, radio, and social media.
For information visit Item9LabsCorp.com.
About Item 9 Labs Corp:
Item 9 Labs Corp. (OTC: INLB) creates comfortable cannabis health solutions for the modern consumer. The Company is bringing best of industry practices to markets from coast to coast through cultivation and production, distinctive retail environments, licensing services, and diverse product suites catering to different medical cannabis demographics. Item 9 Labs Corp. is headquartered in Phoenix, Arizona, with medical cannabis operations in multiple U.S. markets.
Item 9 Labs Corp.’s asset portfolio includes Dispensary Permits, Dispensary Templates, and Strive Life. These assets provide services specific to different stakeholder groups. Dispensary Permits is the Company’s consulting firm specializing in strategic license application and compliance. Dispensary Templates, a subdivision of the firm, is a technology platform with an extensive digital library of licensing and business planning resources. Strive Life is a turnkey dispensary model for the retail sector, elevating the patient experience with consistent and superior service, high-end design, and precision-tested products. It is currently being implemented in Arizona and North Dakota.
In addition, Item 9 Labs Corp. is advancing the industry with its dynamic product suites. The Company has created complementary brands Item 9 Labs and Strive Wellness to channel consumer diversity. Propriety delivery platforms include the Apollo Vape and Pod system, as well as a pioneering intra-nasal device. The Company has received multiple accolades for its medical-grade flower and concentrates.
Item 9 Labs Corp. intends to manage cultivation, processing, distribution, and dispensary operations in up to ten U.S. markets by the end of 2019. Current facilities include distribution and processing operations Strive Wellness of Ohio and Strive Wellness of Nevada, as well as dispensary Strive Life North Dakota.
For more information, visit Item 9 Labs Corp. at www.Item9labscorp.com.
Forward-Looking Statement: This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Media
Contact:
Neko Catanzaro
Proven Media
Neko@provenmediaservices.com
(401) 484-4980
Investor
Contact:
Jeffrey Rassás
Item 9 Labs Corp.
Jeffrey@item9labs.com
(602) 463-4246