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Kaya, which trades in medical marijuana and merchandise, reported a bump in sales in the June quarter.
Three-month sales of US$866,000 and six-month sales of US$1.6 million – $140 million and $250 million, respectively, in local currency – grew 23 per cent year-on-year, according to NUGL Limited, which holds the assets of Kaya and an affiliated online advertising platform. Half-year sales in 2024 amounted to US$1.3 million.
The revenue mainly came from the three Kaya herb houses, or dispensaries.
Gross profit improved by 18 per cent to US$466,000 for the June quarter.
“The cost of customer acquisition has been greatly reduced by creating a destination and venue for customers that enjoy all product types and services,” said NUGL in its financial report. “The increased gross profit can be attributed to an increase in revenues and a decrease in cost of sales.”
The group is ultimately controlled by co-founder and CEO Balram Vaswani.
Kaya’s sales are on track to surpass last year’s US$2.2 million. Some 75 per cent of sales arise from cannabis, 10 per cent from merchandise and goods, and 15 per cent from food and drink.
Despite the operating gains, NUGL posted a net loss of about US$392,000 for the June quarter which reversed the profit of US$581,000 a year earlier. The loss was largely due to a non-cash charge of US$339,000 tied to the change in value of an investment derivative.
General expenses in the June quarter rose to US$450,000, compared to nearly US$400,000 in period ending June 2024. Cash climbed 23 per cent to US$94,000, mainly due to increased flows from its operations.
Its capital fell to US$1.4 million from US$1.7 million amid an increase in the company’s accumulated losses, which expanded from US$8.8 million to US$9.2 million.
NUGL remains in discussion with Canada-based Silo Wellness regarding a proposed acquisition. Under the terms announced last August, Silo would acquire NUGL in exchange for two billion shares, valuing the deal at CDN$40 million.
“The company continues to evaluate the transaction potential with Silo,” NUGL said in its filing.
NUGL indicated that Silo failed to meet its deadline for filing audited financial statements and other required disclosures for the financial year ended October 2023. As a result, the Ontario Securities Commission put a hold on trading of the stock.
NUGL said that the cease-trade order was issued during a period when trading of Silo’s shares were already halted due to the pending acquisition involving Kaya/NUGL.
“Silo cited the need for additional time to finalise audits and terms related to the Kaya transaction, which has also faced extensions. The audited financial statements are expected to be included in the circular to be distributed before the Silo shareholder meeting to approve the pending transaction, assuming it moves forward,” NUGL said.
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