TransCanna’s December Revenue Grew 20% With Net Income from Operations Accounting for 16%
TCAN Stock is Forming a Bullish Chart Pattern with the Potential for Another Large Breakout
TransCanna Holdings (CSE: TCAN) (OTC: TCNAF) (FSE: TH8) announced today its financial figures for the month of December 2019 which featured 20% growth in month over month revenue. Total Revenue for December came in at CDN $564,000. Net Income From Operations was CDN $91,000 or roughly 16% of revenue.
TransCanna continued its fundamental growth with the company attributing a significant portion of its revenue to an increase in its manufacturing and distribution units. The remainder of TransCanna’s revenue came from recurring cannabis flower sales as well as a large increase in revenue from its Soldaze Snacks edibles.
“It is very encouraging to see significant growth in our edibles, manufacturing and distribution business units. In addition to the ongoing sales of flower from Lyfted Farms, our Soldaze edibles attracted consumer attention after winning multiple awards at the Emerald Cup. Our plan is to grow all four business units simultaneously so we have steady and balanced revenue growth moving forward.”
Today’s monthly revenue announcement will be TransCanna’s final as the company has moved to the standard quarterly reporting system in 2020.
In other TransCanna related news, the company announced it has opened the final room in the expansion of its Lyfted Farms facilities. Now that the Lyfted Farms construction has been completed, TransCanna will now shift its full attention to maximizing its cannabis grow yields by utilizing the additional space and creating further TCAN shareholder value in the process.
TCAN Stock Price Action & Chart
Shares of TransCanna’s CSE listed TCAN stock closed today’s trading session at $1.51 per share, down 7.36% on the day. In the United States on the OTC Markets Exchange, the company’s TCNAF stock closed the day down 0.91% at $1.22. Overseas on Germany’s Frankfurt Exchange, TransCanna’s TH8 stock closed trading today at $1.09, down 0.91%.
TCAN stock has been on a tear over the past 2.5 months. After bottoming at $0.375 on October 31, 2019, TCAN has soared as much as 436% reaching a high of $2.01 on January 8, 2020. Currently, the stock is up 302.67% since the end of October. Shares of TCAN have recently experienced a healthy pullback and are now consolidating nicely. The stock is working off its impressive run as traders lock in profits and new investors buy the dip.
On a technical level, TCAN is currently in the process of forming a Bullish Pennant chart formation. Bull pennants are continuation patterns that are usually followed by another breakout to the upside. You may have noticed a decrease in TCAN’s trading volume over the past week, this is expected and is part of the bull pennant’s process. Volume will spike again on the next breakout. With the cannabis sector heating up even more over the past couple of weeks combined with TransCanna’s strong technical chart and continued month over month fundamental growth, it’s likely that TCAN will recommence its uptrend shortly.
If you’d like to learn how to calculate technical price targets based on bullish pennant patterns, read our article on the subject here. These patterns are most reliable when the stock is moving in conjunction with the rest of the market as is the case now.
Remember, the trend is your friend!
TransCanna is a paid client of The Cannabis Investor.
This report/release/profile is a commercial advertisement and is for general information purposes only. We are engaged in the business of marketing and advertising companies for monetary compensation unless otherwise stated below.