Key Highlights

  • The Yield Growth Corp. (“Yield Growth”, “Company”) announced their Q3-FY2019 financial results and provided an update on its product lines.
  • With the recent legalization of cannabis edibles and alternative cannabis products in Canada, the company entered into a Letter of Intent (“LOI”) with Apothecary Botanicals for the launch of a new product line called Jack n Jane. With annual market demand data taken from Deloitte, we estimate the potential addressable market for Jack n Jane is $404 million.
  • The company announced that its Wright & Well product line is expected to have a United States (“U.S.”) commercial launch by Q1-FY2020. According to Brightfield Group, hemp-derived CBD products in the U.S. could generate sales of up to US$23.7 billion by 2023.
  • In an attempt to enter into the edible mushrooms market, the company established Flourish Mushroom Labs. Subsequently, on November 2019, the company entered into a distribution agreement with Eurolife Brands (CSE: EURO) for its edible mushroom products. Commercialization of said products are expected to start in the first half of 2020.
  • The company reported Q3-FY2019 revenue of $1.90 million – a 61% quarter-over-quarter (“QoQ”) increase and a 355% year-over-year (“YoY”) increase. We are revising our revenue forecast for FY2019 to $5.28 million (previously $5.16 million) and are revising our revenue forecast for FY2020 to $7.37 million (previously $6.24 million).
  • The company reported Q3-FY2019 earnings of -$1.87 million (EPS: -$0.02) versus Q2-FY2019 earnings of -$4.15 million (EPS: -$0.05) and Q3-FY2018 earnings of -$3.74 million (EPS: -$0.05). Our revised earnings forecast for FY2019 and FY2020 are -$12.59 million (EPS: -$0.12) and -$9.77 million (EPS: -$0.07), respectively. Previously, our earnings forecast for FY2019 and FY2020 were -$12.80 million (EPS: -$0.13) and -$6.13 million (EPS: -$0.05).
  • As the company is still in its ramp-up phase, we anticipate that the company will need to raise additional capital shortly.

Visit Better Plant Sciences Inc. page for more research, discussion boards and to like, and share.


Are you enjoying the highlights?

Discover the company's fair value estimate from our certified analysts, identify potential risks, and explore exciting upcoming catalysts in our detailed report.

Already a member? Sign In

Investors are also interested in: