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2yrs ago Cannabis greenmarketreport Views: 463

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Chalice Brands Ltd., formerly Golden Leaf Holdings Ltd. (CSE:CHAL) (OTCQB:GLDFF) reported its financial and operating results for the first quarter of 2021 with total revenue of $5.5 million versus $4.7 million for the same period in 2020. The 18% year-over-year increase was attributed to the overall improvements in the Oregon retail and wholesale businesses. Net losses increased from last year’s $2.4 million to $4.3 million in the first quarter. The company noted that had it included revenue from its Homegrown acquisition, the first quarter 2021 revenues would have been $8.2 million.

Jeff Yapp, Chief Executive Officer of Chalice Brands said, “Continued profitable operations and accretive acquisitions should set us up for a record breaking second half of 2021. We continue to look forward to favorable federal regulation changes while we grow Fifth & Root to showcase our brand portfolio nationally. Our team is energized and focused on growth as we remain disciplined in our allocation of capital.”

Gross profit was $2.5 million, or 45% of total revenue for Q1 2021, compared with $1.7 million, or 37% of total revenue, in Q1 2020. Operating expenses were $2.7 million for Q1 2021, compared with $3.3 million in Q1 2020, an improvement of $534,000, or 18%. Operating expenses of $2.7 million in Q1 2021 were 49% of total revenue, compared with $3.3 million in Q1 2020, or 70% of total revenue. The reduction in operating expenses was driven largely by decreases in share-based compensation and general and administrative expenses. The reduction in operating expenses was due primarily to decreased salaries, wages, and share-based compensation.

The company began trading under the new symbol CHAL on the CSE today but has not received its new symbol for the OTC Marketplace. “Management believes the acquisition of Homegrown as announced on May 19, 2021, represents a transformative event for Chalice, making this the right inflection point to embark on the Name Change and Consolidation. As noted in that release, we raised sufficient capital to fund this accretive acquisition. Combined with the fact that Homegrown is cash flow positive, the Company will be able to generate positive cash flow to fund operations,” stated John Varghese, Executive Chairman of Chalice Brands Ltd.

Last month the company announced its 80% acquisition of CBD skincare brand Fifth & Root with a national presence in over 400 retail outlets across the United States.

Balance Sheet Moves

Chalice reiterated that it had strengthened its balance sheet by restructuring its convertible debentures due November 16, 2021, to extend the term one year to November 16, 2022, and to reprice the conversion features from C$0.30 to US$0.06. The company also financed its focus on footprint growth in the Oregon market by completing two private placement transactions for total gross proceeds of $10.5 million.

 

Chalice Brands Reports Rising Revenue As It Celebrates Rebranding Effort on Green Market Report.


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