Sheikh Medical reports this morning that it expects revenues for the fourth quarter of 2021 to be approximately NIS 28 million, an increase of approximately 174% compared to the corresponding quarter last year and an increase of approximately 73% compared to the third quarter of 2021.
Accordingly, the company expects that revenues in 2021 will amount to approximately NIS 66 million, an increase of approximately 80% compared to 2020.
This year, Sheikh Medical focused on implementing the strategy for maintaining and strengthening the relationship with the final Israeli customer, while increasing its grip on the entire value chain, with an emphasis on the pharmacy chain.
The company has increased its growing capacity through satellite farms, in a way that allows better control over the qualities and quantities of crops. It has contracted with other factories and imports and exports premium products in a way that allows flexibility and adjustment of production to the increased level of demand. Completed the acquisition of control of three pharmacies on its way to establishing a network of pharmacies, and continued its cooperation with all pharmacies in Israel that issue cannabis. Sheikh is the first company that has exported medical cannabis from the State of Israel and is actively exporting cannabis inflorescences to Australia and is working to export to other countries. In addition, it exports oil products and advanced products in the EU-GMP standard.
At the same time, the company took out a bank credit facility of about NIS 10 million, provided by Bank Hapoalim, and this is the first significant bank credit that this bank provides to an Israeli medical cannabis company, and in particular to a company licensed to grow medical cannabis in Israel. This framework will allow the company financial flexibility while diversifying the sources of financing and will be an additional source of support for growth in the volume of business activity and in particular in investment in working capital.