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Feb 25, 2020 2:16 AM ET

Green Growth Brands Reports Second Quarter Fiscal 2020 Results


Green Growth Brands Reports Second Quarter Fiscal 2020 Results

iCrowd Newswire - Feb 25, 2020

COLUMBUS,- Green Growth Brands Inc. (GGB or the Company) (CSE: GGB) (OTCQB: GGBXF) today reported its results for the period ended December 28, 2019. Revenues for the period totaled $21.1M.

“The results this quarter are a reflection of our ability to create products and experiences that consumers want,” said Peter Horvath, CEO of Green Growth Brands. “We are pleased with the consumer demand signals we saw in the CBD segment during the quarter, and we remain confident in its future potential. However, overhead costs, near-term obligations and constraints on liquidity have posed significant challenges that have hindered us from growing the CBD business in the timeframes we anticipated to its full-potential.  

“The initiatives we announced today to sell the CBD segment, restructure debt and raise equity financing improves the financial infrastructure we need to scale our MSO segment. We believe focusing our expertise on the MSO segment will yield the highest long-term value for our shareholders and customers.” 

In light of today’s announcement regarding the CBD Transaction and related matters, GGB has rescheduled its conference call and audio webcast with Chief Executive Officer, Peter Horvath, Chief Operating Officer, Randy Whitaker, and Chief Financial Officer, Brian Logan, for 5:00 PM EST on Wednesday, February 26, 2020.

Second Quarter Fiscal 2020 Highlights

Adjusted EBITA loss is a non-IFRS financial measure.  A description of and a schedule reconciling net loss before taxes, an IFRS financial measure, to Adjusted EBITDA loss, a non-IFRS financial measure, accompanies this release

Second Quarter Fiscal 2020 Financial Statements

 

Unaudited Condensed Interim Consolidated Statements of Financial Position

 

As at December 28, 2019 and June 30, 2019

(Expressed in United States dollars)

           
         

December 28, 2019

 

June 30, 2019

               

Assets

           

Current Assets

           
 

Cash and cash equivalents

   

$

3,597,173

$

10,256,008

 

Receivables

     

1,032,141

 

580,529

 

Prepaid expenses

     

2,046,461

 

5,142,618

 

Inventories

     

8,167,294

 

10,244,804

 

Biological assets

     

685,744

 

1,352,097

 

Notes receivable

     

48,467

 

47,739

 

Other receivables

     

2,845,744

 

3,006,760

 

Deferred lease charges

     

 

727,518

         

18,423,024

 

31,358,073

Non-current assets

           
 

Deposits and other assets

     

716,672

 

2,880,186

 

Deferred lease charges

     

 

2,606,940

 

Notes receivable

     

154,478

 

17,999,224

 

Property and equipment, net

     

29,708,259

 

18,761,723

 

Right-of-use assets

     

86,619,872

 

 

Intangible assets

     

101,667,071

 

39,925,984

 

Goodwill

     

58,416,949

 

36,253,417

 Total assets 

   

$

295,706,325

$

149,785,547

               

Liabilities

           

Current Liabilities

           
 

Accounts payable and accrued liabilities

     

32,009,434

 

16,028,807

 

Taxes payable

     

1,113,360

 

282,593

 

Due to related parties

     

4,491,862

 

317,535

 

Notes payable

     

35,060,970

 

45,762,540

 

Lease liabilities

     

11,846,119

 

 

Embedded derivative liabilities

     

274,531

 

1,496,214

 

Convertible debentures

     

67,105,410

 

41,623,041

         

151,901,686

 

105,510,730

Non-current liabilities

           
 

Long term accrued liabilities

     

1,672,672

 

299,977

 

Lease liabilities

     

77,796,680

 

 

Embedded derivative liabilities

     

226,797

 

 

Convertible debentures

     

9,033,123

 

 

Deferred tax liability

     

6,985,048

 

1,437,324

         

95,714,320

 

1,737,301

Shareholders’ Equity 

           
 

Share capital

     

182,954,729

 

119,881,374

 

Reserve for warrants

     

16,538,786

 

9,054,624

 

Reserve for share-based compensation

     

4,239,914

 

3,147,110

 

Accumulated deficit

     

(158,425,838)

 

(92,453,943)

 

Accumulated other comprehensive income

     

148,286

 

148,286

Total equity attributable to shareholders of Green Growth Brands Inc.

 

45,455,877

 

39,777,451

Non-controlling interest

     

2,634,442

 

2,760,065

Total equity

     

48,090,319

 

42,537,516

 Total liabilities and equity 

   

$

295,706,325

$

149,785,547

Adjusted EBITDA loss is a non-IFRS financial measure, which is calculated as net income (loss) before interest, taxes and depreciation and amortization, plus fair value adjustments on sale of inventory and on growth of biological assets, share-based compensation and payments, loss (gain) on equity investments, loss (gain) on foreign exchange, transaction costs, and certain other non-operating expenses, as determined by the Company. The Company believes this measure provides useful information as it is a commonly used measure in the capital markets and as it is a close proxy for repeatable cash generated by (used for) operations.

Contact Information:

Green Growth Brands








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