Happy as a clam? Atlas pearls reels in much-needed $2m from auction
One-time cannabis wannabe Atlas Pearls has had a much-needed cash injection following a pearl auction in Japan.
The company made $2m from the auction, following a private sales event in September which made $1m.
Over the last year Atlas has made between 1.8m and $2.4m at auctions.
Atlas distribution manager Tim Jones said demand for good quality white south sea pearls remained strong — a mantra the company repeats almost every year in October.
The company, which listed in 1993, is in need of cash.
Its accounts for the year to June 30 showed revenue slipping 13 per cent to $14.2m, despite two very strong pearl auctions in the second half of the year.
Revenue has been slipping since 2016, a year when the company’s fortunes appeared to be turning around, and the last loss worsened by 125 per cent to touch $2m.
The last time it made a profit was in 2014, and before that in the years up to 2012.
Last year Atlas Pearls flirted with the idea of using its subsidiary Essential Oils of Tasmania as a vehicle to get into the budding medical cannabis industry in Australia,.
It says it’s continuing to “explore a number of prospective paths” for cannabis but Stockhead understands its initial foray with unlisted company LeafCann is no longer on the table.
Atlas Pearls stock has never recovered from slipping into loss after 2014, and closed on Tuesday at 1.6c.