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Idvhmz123 on Jan 14, 2021 9:22pm
BRCK.U news release
BellRock Brands Confirms Previous 2020 Financial Guidance of Merged Companies; Issues 2021 Guidance BellRock Brands logo (CNW Group/BellRock Brands Inc.) NEWS PROVIDED BY BellRock Brands Inc. Jan 13, 2021, 06:05 ET BellRock Expects to Continue Delivering Significant Revenue and Cash Flow Growth in 2021 with a Focus on Scaling Operations and Expanding its Brand Platform DENVER, Jan. 13, 2021 /CNW/ - BellRock Brands Inc. ("BellRock" or "the Company") (CSE: BRCK.U), an industry-leading cannabis consumer packaged goods ("CPG") multi-state operator ("MSO"), is reporting that it has exceeded its previously announced guidance of $40 million pro forma revenue for 2020 and is issuing revenue and adjusted EBITDA guidance for 2021. The 2020 guidance was based on pro forma revenue results as if BellRock Brands had been formed on January 1, 2020 via the business combination of BR Brands and Dixie Brands (the "Merger"). BellRock enters the new year focused on scaling operations and expanding its brand platform. As a result, the Company expects to generate over $50 million in revenue for 2021, representing approximately 25% year-over-year growth, consistent with the Company's four-year topline compounded annual growth rate. BellRock is forecasted to achieve positive adjusted EBITDA and free cash flow for the year. The forecast is based on organic revenue growth only and does not reflect any potential M&A. In addition, the Company's forecast is fully funded from operations and does not require additional external capital. BellRock is committed to growing shareholder value by unlocking synergies from its recent merger and driving continued profitability in 2021. "I am incredibly proud of the BellRock team for the seamless integration we achieved as a result of the merger," said BellRock Brands CEO Chuck Smith. "Achieving our revenue target is a testament to the strength and resilience of our company and our people. Looking ahead to this year, we expect this momentum to continue as we remain focused on unleashing the power of this platform that we have built to drive shareholder value." BellRock's growth strategy employs a three-pronged approach of enhancing its platform through strategic acquisitions, prioritizing profitable organic revenue growth and continuously optimizing its costs and capital structure. Smith continued, "This year, our priorities include maximizing presence in our key markets Colorado, California and Michigan expanding to new and exciting markets like Florida, further diversifying our portfolio through our buy-and-build strategy and continuing to unlock remaining synergies from the Merger." Additionally, the BellRock board of directors (the "Board") has approved the consolidation of the common shares (the "Shares") of the Company on a 30 to 1 basis (the "Consolidation"). The Company will now seek necessary regulatory approvals to consummate the Consolidation. The date on which the Shares will begin trading on a post-Consolidation basis will be announced once the necessary approvals have been received. Lastly, the Company announces that it has changed its auditor from MNP LLP ("Former Auditor") to Manning Elliott LLP ("Successor Auditor"). In accordance with the change, the Former Auditor resigned as the auditor of the Company effective January 6, 2021, and the Board appointed the Successor Auditor as the Company's auditor effective January 6, 2021, until the next Annual General Meeting of the Company. There were no reservations or modified opinions in the Former Auditor's audit reports for the Company. There are no "reportable events" (as the term is defined in National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102") between the Company and the Former Auditor. In accordance with NI 51-102, the notice of change of auditor, together with the required letters from the Former Auditor and the Successor Auditor, have been reviewed by the board of directors of the Company and filed on SEDAR. The Company expects to provide its audited financial results for fiscal 2020 on or before April 30, 2021.