Yesterday, Green Growth Brands (CSE: GGB, OTCMKTS: GGBXF) released its first round of financials following it’s amalgamation with Xanthic Biopharma on November 9, 2018. On the surface, thing’s aren’t as cheery as many casual observers expected – revenues posted amount to $3.14mm for the quarter, which was short of what many were anticipating.
However, due to the acquisition occurring almost half way through the reporting period, Green Growth isn’t able to report the full quarters earnings from it’s Nevada operations. As such, revenues for it’s flagship The +Source dispensary in Nevada are only taken into consideration from November 9, which is the closing of the NOR acquisition, to that of December 31, 2018. In total, the Nevada cannabis operations accounted for $3.07mm in revenue, over a total period of 53 days – just shy of being half of the full 92 day quarter.
Collectively, this equates to $58,072 in revenues per day which annualized equates to roughly $21.2mm – signalling that Q3 should post much higher revenues versus that of Q2. In total, this equates to an annualized revenue per square foot of $15,177 – one of the most, if not the, highest figures in the industry. These revenues come from both its retail location, as well as that of wholesale sale via its production and cultivation facility.
These sales are the result of having a single adult use and medical dispensary open in Las Vegas, Nevada. The company was also awarded seven more license in mid December, of which Green Growth anticipates having at least three operational by the end of 2019, with the remainder opening in 2020. The company has also since acquired assets in Massachusetts and additional assets in Nevada.
More to come..
Information for this briefing was found via Sedar, The CSE, and Green Growth Brands. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
