Canadian marijuana company Tweed is smoking: it just posted its highest ever revenue figures.
The company, which sells medicinal marijuana reported sales of $1.12m (£580,706) for the 12 months ending 31 December, and $641,309 for the fourth quarter, which ended on the same date.
December was by far the biggest month for the company, with 50 per cent of its fourth quarter revenue coming during the month. Tweed is still making net losses however, $2.65m for the quarter and $7.74m for the financial year.
Why it’s interesting
The world is opening up to marijuana, especially the US to the south, as the map below shows. It still remains illegal for recreational use in Canada, but cannabis can be used medicinally. Tweed was granted a licence to grow marijuana in January last year, and so is still very much in its infancy.
Tweed, currently run by interim chief Bruce Linton, is one of 20 companies currently licenced to grow the plant. In 2000, when the Canadian government first legalised the drug for medicinal use, there was mayhem. The government sold straight to customers, but individuals could also grow the stuff at home for personal use or even beyond.
Canada introduced the Marijuana for Medicinal Purposes regulations in April last year, and Tweed is licenced under those regulations. It prides itself on growing different strains of the plant in their ideal environment, either outdoors or indoors, on its six farms.
The new rules mean that patients have to sign up to one dedicated producer, rather than shopping around. This means it’s in Tweed’s interest to offer good quality marijuana, grown in optimal conditions: anything less could mean customers go elsewhere. It’s more than worth Tweed’s while to build a solid base in an industry that soon could be worth $3.1bn (Canadian dollars).
Who knows what could happen if the US manages to homogenise legislation and reconcile strict federal laws with the more lenient rules in certain states (see map).
It is important to reiterate that Tweed invested in a large growing platform early so we could remove any customer onboarding roadblocks.
said Bruce Linton, Chairman and CEO of Tweed.
This investment began to yield significant inventory in November, clients in December, and sustained growth to date.