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.