Q3 2021 Financial Summary
- EBITDA was a gain of CA$5.9 million, compared to an EBITDA loss of CA$5.8 million in the same period a year ago;
- Net loss amounted to CA$5.5 million, which compares to CA$9.5 million in the corresponding quarter of 2020; The change in net loss was primarily a result of revaluation of the Company’s Call/Put options, as well as rightsizing compensation and achieving economies of scale;
- The company’s current debt amounts to CA$115 million due in 2022.
“In the third quarter, we made excellent progress in laying additional building blocks in our core operating states of Florida, Michigan, and California to become more vertically integrated where it will be most profitable,” Brad Rogers, RWB chairman & CEO said in a statement. “This will help drive increased revenue and margins for the Company. Simultaneously, we are gaining significant market share with our premium Platinum Vape™ (PV) and exclusively licensed High Times® branded products in select markets as evidenced by ArcView/Greentank’s 2021 Q3 Industry Vape Report, which named Platinum Vape as the #1 brand vape cartridge in Michigan.”
RWB has continued to work closely with Michigan’s Marijuana Regulatory Agency and is making progress on closing the acquisition of various Michigan facilities, which include active and planned dispensaries, cultivation facilities and company-owned real estate holdings. These Michigan facilities generated $93 million in revenue in 2020.
At this time, no investee revenue or expenses (other than expenses related to transaction costs) are included in the RWB financial results.
The company closed on the acquisition of the Apopka, Florida cultivation facility and readied 30 grow pods for transition onto the site, in anticipation of being fully planted by Dec. 1, 2021. RWB projects its first full-year revenue of $50.8 million from the 30 pods and greenhouse in Apopka. Average Florida cannabis operators are currently reporting gross margins of approximately 60%.
Q3 Additional Updates
- Florida: Closed acquisition of 45,000 square foot greenhouse on 4.7 acres in Orange County Florida and RWB Florida began producing edibles at the Sanderson facility;
- Michigan: RWB took over operational control of Platinum Vape, leveraging efficiencies of scale across multiple states, obtained adult-use (recreational) license and finalized the build-out of a separately acquired processing facility for the production of vapes, chocolates and gummies;
- California: The company is on track to expand distribution of the brand in 2022, anticipating doubling its footprint in California and expanding beyond vapes; Former US Congressman Ryan Costello joined the RWB board of directors.
Red White & Bloom’s shares traded 13.12% lower at 42 cents per share at the time of writing Tuesday morning.