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by Stockwatch Business Reporter
The S&P/TSX Cannabis Index gained 0.39 point to 159.12 Thursday, while the Canadian Securities Exchange Composite Index slipped 0.47 point to 378.27. Michael Jennings's United States-based Next Green Wave Holdings Inc. (NGW) rose 5.5 cents to 16.5 cents on 1.01 million shares after releasing its results for the first quarter of 2020. The self-described premium cannabis producer reported revenue of $1.1-million (U.S.) in Q1 2020, up from $144,000 (U.S.) in Q4 2019.
One of the first things that Next Green mentions is that its revenue has continued to rise since the end of Q1 despite COVID-19. Next Green says most of the Q1 revenue ($900,000 (U.S.)) was recorded from sales in March. After that, the company says it eclipsed $1-million (U.S.) in sales in both April and May. With the rising revenue, Next Green Wave says it had positive cash flow and net income in March, April and May.
In the first quarter, Next Green lost $506,000 (U.S.). The company also used cash of $624,000 (U.S.) in its operations during the quarter, which leaves it with cash of $588,000 (U.S.). With its cash accounts reduced, the company may have become cash-flow positive just in time to avoid a dilutive financing or expensive borrowing.
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