Green Growth Brands Inc. has reported its financial results for the third quarter (calendar Q1), which ended March 31, 2019.
Revenues in the period stood at US $5.6m, with a gross profit of $108,477.
Largely thanks to hefty ‘General and Administrative’ ($8.1m) and ‘Legal and Professional Fees’ ($6.2m) expenses, the company posted an operating loss of $17m in the period.
Its net loss weighed in at $15.4m for the quarter.
“This quarter we executed our strategy with speed and agility. We made great progress towards establishing our leadership in the industry, by setting new standards for consumer experiences and product,” said Peter Horvath, CEO of Green Growth Brands (pictured).
“We launched Seventh Sense, began our unprecedented big-bang expansion into hundreds of prime mall-based CBD shops, and grew performance at our premier dispensary, The+Source Las Vegas, through implementing margin accretive retail practices.
“We completed the Just Healthy transaction allowing us to enter Massachusetts, and we plan to open new dispensaries in Nevada in the remainder of the calendar year,” added Horvath. “As an early-stage company, just over a year-in, when most competitors have been operating for 4-8 years, we are proud of the accomplishments we have made. We will continue to drive towards profitability.”
Green Growth listed its Q3 highlights as the following:
- Revenue for the quarter at our Nevada cannabis operations grew to $5.1 million, driven by the influence of retail best practices
- Total revenue, including both MSO and CBD operations was $5.6 million
- The+Source is tracking to annualized revenue of $15,000 per selling square foot, one of the strongest reported metrics in both cannabis and retail1
- Nevada gross margin was 41%, including the impact of fair value biological assets
- Expansion into Massachusetts, through completion of a transaction with Just Healthy LLC (“Just Healthy”), allowing for operation of up to three dispensaries and one cultivation and production facility in Massachusetts. Just Healthy holds provisional certificates of registration for a registered marijuana dispensary in Northampton, Massachusetts, as well as a cultivation and processing site, also located in Northampton.
- Official launch of Seventh Sense with more than 100 SKUs, and growing
- Opening of Seventh Sense mall-based shops with the first shop in Lexington, Kentucky, 6 shops opened during the period. As of May 28th, 2019, the Company has more than 30 locations.
- Launch of Seventh Sense website, ShopSeventhSense.com, allowing for consumers to purchase CBD and personal care and beauty products online
- Launch of Seventh Sense products throughout 98 DSW stores in the U.S.
- Agreement with Simon Property Group to lease up to 108 mall-based CBD shops in prime locations throughout the U.S.
- Launch of CBD eCommerce and our first six mall-based shops
- Licensing agreement with Authentic Brands Group to create Greg Norman branded CBD personal care products
- Expansion of the Executive team with the addition of Randy Whitaker as Chief Operating Officer. Mr. Whitaker brings significant retail and real estate expertise to the Company.
Cannabis Business Worldwide