East coast listed medicinal cannabis company Rua Bioscience has launched branded products in Germany but made a loss before tax of $6 million in the 2023 financial year.
Revenue from customers was $358,000, 15 times that of the previous year.
Supplementary revenue of $5.85m was a non-cash fair value gain as a result of a reduction in the payment liability to ex-Zalm shareholders.
Zalm Therapeutics was acquired for a declared $10m in January 2022.
The directors of Rua said the FY23 results were expected, and the company remains well capitalised with cash and investments on hand at balance date of $4.56m, about half of the amount at the previous balance date.
During the second half of FY23 the company closed its manufacturing facility in Gisborne, with the loss of two jobs, and reduced overheads and expenditure.
It has now outsourced cultivation and manufacturing cannabis medicinal products while its research facility at Ruatorea is working on genetics for unique Rua varieties.
Germany is the most-developed market in Europe and forecast to be worth $700m by the end of 2023.
Rua is also planning to sell into Poland, Czechia and the United Kingdom.
A pipeline for Rua-branded products to be distributed and sold in Australia has also been established.
It also runs a compassionate access programme for patients in New Zealand.
Since the initial public offer, which raised $20m three years ago, Rua’s shares have fallen from the 50c issuing price to 10c today, with 65% of that fall having occurred during the past year.