Local medical marijuana producer Tweed Marijuana spent $2.9 million during its first quarter as a public company but, since the quarter ended before it began shipping its product, the company recorded no revenue.
“I am pleased to report our progress in this first quarter as a public company. During this period, the company’s focus and operating spending has been on achieving commercial production to be able to sell medical marijuana to Canadians in need,” Chuck Rifici, the company’s CEO and co-founder, said in a release.
The Smiths Falls company recorded a net loss of $2.8 million during the three-month period that ended March 31, with the vast majority of that related to operating expenses.
Included in the company’s operating expenses were $1.3 million related to the company’s reverse acquisition and listing on the TSX Venture Exchange, which is not a recurring cost.
Despite the lack of revenue, Tweed (TSXV: TWD) ended the quarter with more cash after it raised$9.8 million in equity financing.
Shares in the company were trading down one cent mid-afternoon Wednesday.
Tweed began shipping early last month and expects to record revenue during its second quarter.