Schwazze, formerly operating as Medicine Man Technologies Inc. (SHWZ), a constituent in the munKNEE Pure-Play Pot Stock Index, announced strong Q3, 2020 financial results today for the period ended September 30, 2020, as follows:

Q3 Financial Highlights 

(All results are presented in USD and compared to the previous quarter.)

• Revenue: increased 37% to $7.4M (largely attributed to the revenue associated with the acquisition of Mesa Organics in April 2020)
• Gross Profit (Loss): increased 21% to $2.8M 
• Gross Margin: declined to 37% from 42%
• Net Profit (Loss): improved 56% to $(2.9)M 
• Profit (Loss) per Share: improved 56%
• Cash Equiv. on Hand: decreased 44% to $3.0M 

Q2 Operational Highlights

• Promoted Nirup Krishnamurthy, Chief Integration and Information Officer, to the position of Chief Operating Officer.
• Appointed Jeff Garwood, former GE executive, to the Schwazze Board of Directors.

Management Commentary

Justin Dye, Chairman, and Chief Executive Officer, said:

• “We are pleased with our progress in the third quarter. We continued to grow revenue and meaningfully narrow our net loss.
• Our third-quarter performance demonstrates the team’s ability to implement our operating playbook and successfully integrate strategically attractive and accretive acquisitions such as Mesa Organics and Purplebee’s, which have proven to be an excellent strategic fit, into our operations."
• Commenting on Q4 Dye said:
  • "On November 5, 2020, the Company...received proof of funds acknowledgment from Star Buds in anticipation of the Q4 closing of the acquisitions of Star Buds’ 14 Colorado locations - 13 retail operations and one cultivation facility in Denver.
  • The proforma revenue for the combined companies for 2020 will be approximately $90M and the combined companies will be profitable and cash-flow positive after the completion of the acquisition.”

Stock Performance

Schwazze is DOWN 50.4% in price YTD but is up 20.9% since the beginning of November as illustrated in the chart below.

(Click on image to enlarge)