RE: Hempseed...........8 Jul 2022 15:24
Nice write up, very positive read. https://businesscann.com/european-cannabis-stocks-review-kanabo-climbs-25-following-spanish-medical-legalisation-announcement-deepverge-continues-run-of-success/
DeepVerge has managed to continue its recent run of success, seeing its stock jump by around 30% since lows of 9.5p at the end of June, now trading at 12.27p.
This has been aided by a flurry of releases from the company, beginning with the release of its final results for 2021, published on June 23, 2022.
This saw DeepVerge, which produces a range of CBD cosmetics, report revenues more than doubling throughout the year to £9.3m.
According to the company, orders during the financial period topped £10m, but it was forced to push nearly £1m worth of shipments back until Q1 2022.
Alongside the rising revenues, DeepVerge saw its EBITDA losses fall by 98% to £17k, down from £859k a year earlier.
While the company’s share price remained turbulent for around a week following its FY results, a further release on June 30 encouraged a more permanent ascent.
In an RNS, DeepVerge revealed that its Modern Water products had secured orders in excess of £3m in China and South Asia during Q2, set for delivery during the current financial year.
The news signalled a return to sales in one of the company’s most lucrative markets following months of strict lockdowns, in large part thanks to a diversification strategy, pivoting ‘from selling lower ticket equipment to medium and large enterprise solution sales’.
Days later, on June 4, the company released a further RNS regarding its Skin Trust Club subsidiary, announcing that it had generated more than £1m in sales and signed 20 new sales and marketing agreements so far in 2022.
The company said these developments would open up ‘multiple routes to potential new revenues and market audiences across the UK and US’.
Investors appeared to take the company at its word, seeing share trade volumes skyrocket throughout July, with some estimates suggesting the company could have already surpassed its total 2021 revenues this year.
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