Red White & Bloom Brands Inc. (OTC:RWBYF) reported on Tuesday a record revenue from continuing operations of CA$28 million ($21.85 milliom) in the first quarter of 2022. For the year ended December 31, the company generated CA$37.3 million in revenue, up by 193% year-over-year.
“With the first half of 2022 now behind us, we are committed to driving profitable growth throughout the organization as we set our eyes to achieving positive EBITDA by the end of this fiscal year,” Brad Rogers, the company’s CEO and chairman, said.
2021 Financial Highlights
- Gross profit totaled CA$23.2 million.
- Increase of CA$11.4 million in cost of sales from CA$6.4 million in 2020 to CA$17.8 million in 2021.
- Increase of CA$11.2 million in operating expenses from CA$36.1 million in 2020 to CA$47.3 million in 2021.
Q1 2022 Financial Highlights
- The gross profit of CA$9.2 million includes the loss of CA$2.45 million on biological assets and a gain of CA$0.27 million on realized fair value on inventory sold. Gross profit, excluding these items of CA$11.3 million.
- Operating expenses of CA$11.4 million for the period. Operating expenses include non-cash items of depreciation and share-based compensation in the amounts of CA$1.48 and CA$0.275 million, respectively.
- Net loss of CA$11.3 million for the period with an adjusted EBITDA gain of CA$0.360 million.
2021 Business Highlights & Subsequent Events
- Completed the acquisition of Acreage Florida, Inc., through its wholly-owned subsidiary of RWB Florida LLC.
- Completed the more comprehensive portion of Michigan’s two-step application process for marijuana licensing through a wholly owned operating subsidiary, RWB Michigan, LLC.
- RWB’s wholly-owned subsidiary, RWB Florida, entered into agreements for an aggregate capital raise of $30.2 million.
- Acquired an operational 45,000-square-foot greenhouse situated on 4.7 acres of land in Apopka, Florida.
- Completed a refinancing of an aggregate principal amount of 18.62 million debentures (plus accrued interest to September 1, 2021) previously issued to an arm’s-length investor.
- Issued 6,78 million shares to settle a CA$5.1 million ($4 million) debt. The weighted average conversion price was approximately CA$0.75 per share ($0.56).
- Closed on a lease assignment for a 15,000 square feet manufacturing/processing and distribution facility in Warren, Michigan, through its wholly owned subsidiary, RWB Michigan.
- Received all regulatory approvals and closed its acquisition of PharmaCo via RWB Michigan in an all-stock transaction.
- Closed on the sale of its Granville, Illinois greenhouse, associated real estate and certain greenhouse equipment to New Branches LLC of California, an arm’s length purchaser, for a total cash purchase price of CA$56.1 million ($44.5 million). In connection with the closing, the company repaid its secured lender $51.7 million from the proceeds and certain other accrued liabilities totaling approximately $3.8 million.
- Entered in an agreement with C3 Industries to license the PV brand in Missouri and Massachusetts.
“After many significant sector challenges over 2020 & 2021, we are pleased to report that by the close of Q1 2022, we were able to complete all of the acquisitions we had discussed over the previous two fiscal years, including Florida and Michigan and we are now able to focus on our original strategy which we feel is the most adaptable and will offer the best return for the Company and stakeholders,” Rogers said.
RWBYF Price Action
RWB’s shares traded 1.16% lower at $0.141 per share on Tuesday morning.
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