{"id":9015,"date":"2024-05-01T06:01:28","date_gmt":"2024-05-01T06:01:28","guid":{"rendered":"https:\/\/economicherald.net\/?p=9015"},"modified":"2024-05-01T06:01:28","modified_gmt":"2024-05-01T06:01:28","slug":"melodiol-delivers-strong-revenues-in-q1-as-us-moves-to-reclassify-cannabis","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=9015","title":{"rendered":"Melodiol delivers strong revenues in Q1 as US moves to reclassify cannabis"},"content":{"rendered":"<p>Melodiol Global Health Q1 FY24 unaudited revenue of $4.4m marks a 91% increase on pcp<br \/>\nCompany remains focused on reducing operating costs, while pursuing high growth revenue opportunities<br \/>\nUS Drug Enforcement Administration to reclassify cannabis from Schedule I to Schedule III, a move well received by North American cannabis markets <\/p>\n<p>\u00a0<\/p>\n<p><strong>Special Report: Melodiol Global Health has generated\u00a0a 91% increase in unaudited revenues on the prior corresponding period (pcp) to $4.4m in Q1 FY24, following record group revenues of $21.6m in FY23. <\/strong><\/p>\n<p><a href=\"https:\/\/stockhead.com.au\/company\/melodiol-global-health-me1\/\" target=\"_blank\" rel=\"noopener\"><strong>Melodiol Global Health Limited (ASX:ME1)<\/strong><\/a><strong>\u00a0<\/strong>says the latest result further highlights the company\u2019s ability to identify and capitalise on high growth opportunities.<\/p>\n<p>The cannabis play says Q1 FY24 revenue was underpinned by ME1\u2019s 100%-owned Canadian subsidiary, Mernova Medicinal Inc, which generated $1.6m revenue for the period, up 6% on pcp.<\/p>\n<p>ME1 says its wholly-owned operating division Health House International (HHI) also contributed $2.4m in revenue.<\/p>\n<p>The company says HHI\u2019s ongoing contribution to the company\u2019s revenue since its acquisition HHI in May 2023 has further underpinned ME1\u2019s stated strategy of leveraging strategic M&amp;A to bolster operations.<\/p>\n<p>In other highlights for the quarter:<\/p>\n<p>Receipts from customers totalled $5m, a 94% rise on pcp;<br \/>\nNet cash used in operating activities reduced by 50% from $2.2m in Q4 FY23 to $1.1m in Q1 FY24;<\/p>\n<p>ME1 finished the quarter with $600k in the bank.<\/p>\n<p>\u00a0<\/p>\n<h2><strong>Focus on reducing operating costs<\/strong><\/h2>\n<p>ME1 says it remains resolutely focused on reducing operating costs, while pursuing high growth revenue opportunities to push towards profitability.<\/p>\n<p>The company says it continues to take active steps to refocus its efforts and resources into higher performing business units.<\/p>\n<p>ME1 is also exploring opportunities to undertake a strategic divestment or closures of non-performing business units.<\/p>\n<p>CEO and managing director William Lay says the company remains committed to building on its significant revenue base while focusing equally diligently on reducing expenses.<\/p>\n<p>\u201cDuring Q1 FY24, the company continued to deliver solid revenue, which followed record yearly revenues of $21.5m in FY23,\u201d he says.<\/p>\n<p>Lay says the bulk of the company\u2019s revenue was generated by Mernova and HHI.<\/p>\n<p>\u201cThese two wholly-owned divisions are considered by the board to be the foundation for the business going forward\u201c he says.<\/p>\n<p>\u201cAs previously advised, the board have made the strategic decision to channel resources to optimise both operations and we look forward to providing additional updates in the coming months.\u201d<\/p>\n<p>\u00a0<\/p>\n<h2><strong>US moves to reclassify cannabis as less dangerous drug<\/strong><\/h2>\n<p>In what could be significant news for ME1 and other ASX cannabis stocks the<a href=\"https:\/\/apnews.com\/hub\/us-drug-enforcement-administration\" target=\"_blank\" rel=\"noopener\">\u00a0U.S. Drug Enforcement Administration (DEA)<\/a>\u00a0is looking to reclassify\u00a0cannabis as a less dangerous drug.<\/p>\n<p>The proposal would recognise\u00a0the medical uses of cannabis but wouldn\u2019t legalise it for recreational use.<\/p>\n<p>Instead, under the proposal cannabis would move from the Schedule I group to the less tightly regulated Schedule III.<\/p>\n<p>According to news reports the proposal must be reviewed by the White House Office of Management and Budget, before a public-comment period and review from an administrative judge.<\/p>\n<p>In August 2023 the US Department of Health and Human Services (HHS) requested the DEA\u00a0to\u00a0consider easing restrictions\u00a0on marijuana to a\u00a0Schedule III\u00a0drug.<\/p>\n<p><a href=\"https:\/\/www.dea.gov\/drug-information\/drug-scheduling\" target=\"_blank\" rel=\"noopener\">Schedule III drugs are defined<\/a> as \u201cdrugs with a moderate to low potential for physical and psychological dependence.\u201d<\/p>\n<p>The use and possession of marijuana in the US is currently illegal at the federal level.<\/p>\n<p>News of a possible reclassification has seen cannabis companies with interests in the US soar. Canopy Growth Corp (TSE:WEED) is up ~70% in the past five days, while Aurora Cannabis Inc (TSE:ACB) has risen more than 25% and Tilray Brands Inc (NASDAQ:TLRY) is up 36% for the period.<\/p>\n<p>\u00a0<\/p>\n<p><em>This article was developed in collaboration with Melodiol, a Stockhead advertiser at the time of publishing. <\/em><em>\u00a0<\/em><\/p>\n<p><em>This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n<p><span class=\"et_bloom_bottom_trigger\"><\/span><\/p>\n<p>The post <a href=\"https:\/\/stockhead.com.au\/health\/melodiol-delivers-strong-revenues-in-q1-as-us-moves-to-reclassify-cannabis\/\">Melodiol delivers strong revenues in Q1 as US moves to reclassify cannabis<\/a> appeared first on <a href=\"https:\/\/stockhead.com.au\/\">Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>Melodiol Global Health Q1 FY24 unaudited revenue of $4.4m marks a 91% increase on pcp Company remains focused on reducing operating costs, while pursuing high <a href=\"https:\/\/economicherald.net\/?p=9015\" class=\"read-more-link\">[more&#8230;]<\/a><\/p>\n","protected":false},"author":0,"featured_media":9016,"comment_status":"","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-9015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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