SOURCE: General Cannabis

General Cannabis

August 15, 2011 08:00 ET

General Cannabis Announces Second Quarter 2011 Results

Year-Over-Year Revenue Increases 98%

NEWPORT BEACH, CA--(Marketwire - Aug 15, 2011) - General Cannabis, Inc. (OTCQX: CANA), a technology-based Internet marketing services company, today announced financial results for the second quarter ended June 30, 2011.

Revenue for the second quarter of 2011 was $3.5 million, a year-over-year increase of 98% compared with $1.8 million for the second quarter of 2010. The increase was due to continued strong growth of WeedMaps Media, our industry leading, on-line community and finder site for cannabis patients, dispensaries and medical clinics.

Operating expenses were $3.2 million for the second quarter of 2011, compared to $1.7 million for the second quarter of 2010. The increase was due to the addition of new talent in technology development and research and development, increased marketing expenses, occupancy costs and professional fees, and non-cash amortization expenses related to prior acquisitions.

Income from continuing operations was $174,000 for the six months ended June 30, 2011, compared to $289,000 for the six months ended June 30, 2010. EBITDA for the six months ended June 30, 2011 was approximately $930,000.

Total liabilities decreased by $1.7 million during the six months ended June 30, 2011. Current liabilities decreased $800,000 and long-term liabilities decreased $900,000, due to payments made to reduce principal balances on notes payable and the termination of a three year consulting agreement, which resulted in a significant decrease in accrued liabilities.

"Our second quarter performance was strong and that allowed us to continue to make investments to position General Cannabis for long-term growth," said Jim Pakulis, CEO of General Cannabis. "During the second quarter, we bolstered our exceptional team with new hires in technology, R&D and sales and marketing. We also expanded our technology platform during the quarter with a wide array of new products offered through WeedMaps Media, CannaCenters, CannabisCenters and SafeAccessMD. At the same time, we strengthened our balance sheet by paying down debt. All told, we are pleased with the progress we made in this quarter and we are excited about our outlook for continued strong growth ahead."

About General Cannabis

General Cannabis, Inc., (OTCQX: CANA) a technology-based Internet marketing services company, offers customers an integrated suite of services including media, technology, marketing and information. Founded in 2010, General Cannabis is headquartered in Newport Beach, California.

Safe Harbor Notice

Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). General Cannabis, Inc. cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. General Cannabis, Inc. undertakes no obligation to revise these statements following the date of this news release.