NewsEuropean Cannabis Stocks Review: Yooma Wellness Reports More Losses...

European Cannabis Stocks Review: Yooma Wellness Reports More Losses In Q1, Chill Brands Stock Jumps 10% On Open Offer, & More from OCT

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Yooma Wellness


Just two weeks after publishing its delayed full-year results, in which it reported a $33m loss, Yooma Wellness has released its sales figures for the first quarter of 2022. 

After its stock was returned to trading following a brief suspension earlier this month, it has seen little movement on the Aquis Exchange. 

However, on the larger Canadian Securities Exchange it has experienced dramatic swings, rising 117%, before diving back down 46% to sit at $0.07 CAD at the end of last week. 

At the time of writing  there have been no updates to its stock price since May 27 2022, meaning that its current stock price does not yet reflect investors’ reaction to its Q1 results. 

In the three months to March 31 2022, Yooma Wellness reported revenues of $3.2m, down considerably from the $5.3m it posted in Q4, and up from $604k in the same period a year earlier. 

Gross profits for the period grew year-on-year from $330k to $783k, despite the dramatic jump in revenues, with net losses for the period coming in at $2.7m. 

Overall this saw Yooma post a comprehensive loss of $3.1m for the first quarter, with its Chairman Lorne Abony reiterating statements made in its FY results that it is working with its strategic adviser Canaccord Genuity in a bid to rectify ongoing losses, which may see it either sell or acquire new companies.  

Yoomas CEO Jordan Greenberg added: “A number of Yooma’s key acquisitions from 2021 are performing well, including Vitality CBD in Europe and Vertex Co., Ltd. in Japan. Revenues and gross profit have both significantly increased, year-over-year, and we expect to start seeing returns on our efforts to rationalise and streamline Yooma’s global platform in the near-term.”

Oxford Cannabinoid Technologies 


OCT also saw its shares briefly jump around 11% this week following an investor update on Monday May 30, before falling back to around the same price throughout the rest of the week. 

The update saw OCT update investors about the progress of its four key compounds, while addressing a number of investors’ questions regarding its financial position. 

According to its CEO Dr John Lucas, OCT’s ‘current cash position takes it until the end of March 2023, if we don’t cut any programmes or delay anything’. 

He added that OCT will ‘need to raise before then to continue our programmes’, and that the ‘amount we raise will depend upon market conditions’. 

With stock prices continuing to sit close to all-time lows for OCT and its LSE-listed stablemates, this could make securing the cash it needs all the more difficult. 

While admitting that OCT ‘may have to be selective over the programmes it advances until conditions improve’, he assured investors that he ‘expects market conditions to improve over summer’ and OCT’s share price to ‘reflect the transition from a pre-clinical to a clinical stage pharmaceutical company’. 

The update came just two weeks after OCT announced the appointment of a new broker, Axis Capital Markets, after its former corporate broker States Bridge Capital announced its departure on November 30 2021. 

Chill Brands


Chill Brands also saw its stock jump nearly 10% this week after it launched an ‘open offer’ to investors to raise up to £484k. 

According to the company, existing shareholders can apply for one open offer unit for every 60 ordinary shares at a price of 12p per unit

Each unit consists of one new ordinary share and five unsecured convertible loan notes with a principal amount of 2p each. 

The open offer forms part of a near £4m raise, which CEO Callum Somerton says will enable the company to stay afloat for the rest of ‘this financial year’. 

It is understood to have been an effort by the company to appease shareholders who missed out on its recent raise, by offering them the opportunity to purchase shares at the same price point. 

Mr Somerton recently told BusinessCann Chill was ‘contacted by a number of long-term shareholders who expressed an interest in investing on the same terms as our recent funding round.’ 

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