Goodness Growth Holdings Inc. (CSE: GDNS) (OTCQX: GDNSF) managed to trim its losses year-over-year in the third quarter of 2023, but still remained underwater with a $5.2 million net loss compared to $8.4 million for the same period a year prior.
Thus far in 2023, the Minnesota-based multistate operator has lost $20.9 million, down from $29.1 million it lost in the first nine months of 2022.
Revenue was up 44% year-over-year and 28.2% sequentially to $24.7 million, in large part thanks to the July launch of Maryland’s recreational marijuana market. Revenue for the year reached $64 million, up 15% from last year when the company had $55.6 million in revenues.
In Goodness Growth’s core markets, year-over-year same-store sales grew 229% in Maryland, but just 15% in Minnesota, and it was down by 14% in New York, the company reported.
“The strength of our third quarter results reflects a combination of benefits from our recent operational improvement initiatives and regulatory catalysts in Maryland following the launch of adult use sales in July,” interim CEO Josh Rosen said in a press release.
Also dragging on the company’s financials is its exit from the stalled New York marijuana market, which Goodness Growth has said is taking longer than it anticipated.
“De-risking our balance sheet remains a critical focus, and while we have not yet executed definitive documents related to our divestiture process in New York, we expect to do so before the end of this year and look forward to sharing more visibility into our future profitability expectations once that process is complete,” Rosen said.
Also in the latest quarter, Goodness Growth inked a consulting contract with two additional Maryland dispensaries that do business as Ethos in the towns of Hampden and Rockville, which will be rebranded to Green Goods, one of the Goodness Growth brands. The contracts give Goodness Growth the option to acquire both stores if that becomes a legal option in the future.
In October, after the end of Q3, Goodness Growth amended a New York cultivation facility lease to help smooth the exit from the state. The amendment allows for tenant improvements to the tune of $14 million, and both sides agreed on a new base rent of $210,000 per month.
At the end of September, Goodness Growth had $135.1 million in total assets, including $13.3 million in cash, and $165.4 million in total liabilities.
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