Management said investors can expect more clarity more clarity on the New York divestiture in Q3.
Goodness Growth Holdings Inc. (CSE: GDNS) (OTCQX: GDNSF) reported a a 10.6% year-over-year rise in revenue for the second quarter, which ended June 30, climbing to $19.2 million with discontinued operations excluded. The net loss of $7.3 million, however, was also steeper than the $6.18 million recorded in 2022’s second quarter.
Despite the net loss, the company exhibited growth in other areas. EBIDTA stood at $2.8 million, compared with the $1.1 million of the prior year’s period. The firm also posted $16.2 million in retail revenue and $3 million in wholesale revenue, compared to $14.7 million and $2.7 million, respectively, in the same period last year.
In a statement, interim CEO Josh Rosen emphasized the company’s efforts to improve its operational efficiency and solidify its balance sheet.
Notably, the company divested its New Mexico operations during the quarter and is in the advanced stages of selling off its New York operations. Rosen anticipates “meaningfully improved cash flow performance” and said more clarity on the New York divestiture will come in the upcoming third quarter.
Amber Shimpa, the president and CEO of medical subsidiary Vireo Health of Minnesota, added that the the company successfully launched its Green Goods outlets in Maryland, after that state commenced adult-use sales on July 1.
“In Minnesota, we remain focused on driving better product at better prices for Minnesota patients, and have been particularly pleased with the support we’ve received from our partnership with Grown Rogue in achieving these important goals,” she added.
“Summer months in Minnesota are our most challenging of the year given the temperatures and humidity in our greenhouse environment, but we have been encouraged by improved production as compared to the prior year despite these seasonal headwinds.”
Among other developments:
On April 28, the company secured a $2 million tranche of a new convertible debt facility. To date, $5 million has been drawn from this facility.
On May 25, a strategic partnership was inked with Grown Rogue International Inc. to enhance the quality of Goodness Growth’s cannabis flower products.
On June 23, the company divested all assets and liabilities of Red Barn Growers Inc. to 37 Management Group,Inc.
On August 2, the company disclosed the voluntary conversion of all of Dr. Kyle Kingsley’s super voting shares, leading to the elimination of that share class.
As of August 14, the company has inked agreements with two more dispensaries in Maryland, which are slated to be rebranded to Green Goods upon receiving regulatory nod.
On the liquidity front, as of June 30, the company reported total current assets of $126.4 million with cash reserves of $11.3 million. It held total current liabilities of $157 million.
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