The Company recorded $888,765 in Q2 sales revenue.
94% growth from the same quarter in the previous year.
MONTREAL, March 28, 2023 /CNW/ - The Good Shroom Co Inc. (the "Company") (TSXV: MUSH), discloses financial results for it's second quarter ("Q2") ended January 31, 2023.
Key Performance Points
- Q2 Gross profit of $182,242
- No long-term debt obligations other than $40,000 due December 2023 to the government of Canada.
- Net loss of $95,166. Excluding non-cash items, the Company's cash loss was of $39,142.
- The Company's capital structure at present is 48,774,683 shares outstanding with approximately 40% inside ownership. On a fully diluted basis it is 51,329,683 shares.
- The Company has not raised additional capital since its go-public transaction in April 2021.
- ESG: The Company is now using 100% Ocean reclaimed plastic for some of its packaging and expects to continue increasing its use.
The Company's CEO Mr. Eric Ronsse stated "As we continue to increase sales we are beginning to realize economies of scale. At the same time, the Canadian cannabis industry is having liquidity issues. Cannabis capital markets are down, banks show little interest in lending and private lenders have aggressive interest rates. Therefore, when operating a young consumer packaged goods brand such as Teonan and a Canadian cannabis company simultaneously, financial discipline is of the utmost importance. Especially as we begin to scale this company. This is why we are heavily focused on cash flow, maintaining a tight capital structure and revenue growth."
The Company encourages readers to refer to its financial statements and management discussion and analysis in comparison to previous quarters and to contact its CEO afterwards for any further questions or comments. Concurrent with the MD&A there are a variety of subsequent events from Q2 which may contribute to the Company's sales over the third and fourth quarters, some of which are discussed below. Also included below are other notable developments per province.
Quebec
- The approval, or transfer from ~25% of stores to all stores, of 4 more products on top of the 15 already being sold. One of those, THC infused beef jerky, has already launched and is the #1 selling cannabis edible in the province, according to weedcrawler.ca, and the others are due to launch in April 2023.
- Also according to weedcrawler.ca, the popular hash Afghan Gold maintains its popularity and remains in the top 10 selling hash products in the province. "Joints Infuses d'Afghan Gold" remains the #1 selling concentrate in the province.
- The Company will be taking part in the May 2023 submission with a variety of edible products, infused joints, hash, CBD capsules, and cannabis flower. Approved products are expected to launch in August or September.
Ontario
- In the first week of March 2023 a hash infused joint by Nordique Royale was launched in Ontario. The first purchase order for this product was of $63,475.20. The Company has received a replenishment purchase order for approximately 1/3 of the initial amount and is expecting to receive another replenishment order in the next 2 months.
About the Company
MUSH operates a portfolio of brands which include traditional cannabis and beverage products. It exists to promote the use of functional ingredients such as cannabis, probiotics and functional mushrooms in consumer products.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Corporation with respect to future business activities and sales, including the anticipated orders to be placed by the SQDC. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions. Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the Corporation's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Corporation believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements. Among the key factors that could cause actual results to differ materially from those projected are the following: market acceptance of the Company's hash and other cannabis products, changes in the vendor's business or strategy, changes in our supplier's operations and pricing, expectations regarding competition and their pricing strategy; maintaining in good standing all necessary regulatory licenses and authorizations for its products; the benefits, safety, efficacy, dosing and social acceptance of cannabis related products and no material changes in the legal environment; changes in applicable laws and regulations compliance with extensive government regulation; operational risks related to and COVID-19 or other pandemic and supply chain disruptions and shortages. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and do not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law. Trading in the securities of the Company should be considered highly speculative.
SOURCE The Good Shroom Co Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2023/28/c1885.html