CANNAINVESTOR Magazine May / June 2017 - Page 238


Consulting fees increased by $1.0 million, primarily attributable to fees paid to Canadian Cannabis Clinics pursuant to a services agreement to provide operational, administrative and consulting services to CanvasRx.

General Cannabis Announces 2017 First Quarter Results

General Cannabis Corp (OTCQB: CANN), the comprehensive resource to the regulated cannabis industry, today announced financial results for the quarter ended March 31, 2017. For the quarter ended March 31, 2017, the company reported a 4% increase in total revenues when compared to the quarter ended March 31, 2016. During the first quarter of 2017, the company's Operations segment, Next Big Crop, increased revenues by 119% over the first quarter of 2016. Offsetting this increase, the Security division experienced a 16% decrease in revenue, because of a decline in wholesale cannabis prices in Colorado, and the company's preference to work only with well-capitalized clients and not overextend credit to security clients. "Next Big Crop, our Operations segment, had record revenues in the first quarter of 2017," said Robert Frichtel, Chief Executive Officer of General Cannabis (CANN). "With 29 states and the District of Columbia now having legalized medical marijuana, of which eight states also legalized recreational use, Next Big Crop has expanded its business by assisting companies submitting applications to acquire licenses, and have also signed new contracts to provide operational consulting and products. Next Big Crop is developing a robust pipeline of business for the next year." "We are pleased that our diversified model continues to work well, with newer divisions providing opportunities for nationwide revenue growth," continued Frichtel. "The continued product price declines in the Colorado market has led to a decrease in overall security guard usage throughout the state. To balance this, Iron Protection Group is expanding into California and is broadening the suite of services it provides to clients." "The increase in total costs and expenses reflects our commitment to developing and maintaining a strong infrastructure" Frichtel added. "Chiefton, for example, has added personnel to become a full-service marketing agency. We have built a strong institutional cannabis platform that continues to gain strength."

Surna Reports Q1 2017 Results

Revenue for the three months ended March 31, 2017 was approximately $1,593,000 compared to $2,498,000 for the three months ended March 31, 2016, a decline of $905,000, or 36%. The decline in revenue was primarily due to: (i) the restructuring of our policies to secure sales contracts at an earlier stage which was not in place in Q1 2016, and (ii) the heightened uncertainty of the cannabis industry following the recent U.S. presidential election.