COSTA MESA, Calif. – Gold Flora Corporation, a leading vertically integrated California cannabis company, announced its financial results for the three month period (“Q3 2024”). All amounts are expressed in U.S. dollars.
Q3 2024 Financial Highlights
- Total revenue of $32.6 million;
- Q3 2024 gross profit of $13.5 Million, representing a 41% gross margin;
- Q3 2024 adjusted gross profit of $21.1 million, representing a 65% adjusted gross margin. Adjusted gross profit excludes depreciation & amortization, operating expense related to U.S. tax code 280E adjustments, and non-recurring inventory adjustments. The adjustments do not affect reported operating income;
- Net quarterly loss of $(18.9) million;
- Adjusted EBITDA of $2.8 million for Q3 2024.
- Cash used in operating activities of $5.8 million; and
- Cash and cash equivalents totaled $10.2 million as of September 30, 2024.
Operational Highlights
Expanded the Company’s first party product revenue generated at its owned retail stores to over 30% of total first party retail store sales in Q3 2024 and have continued to maintain this targeted level subsequent to quarter end.
Q3 flower harvest volume increased by 20% compared to Q1 2024 as previously completed investments that have refined and optimized the Company’s cultivation methods and strains have continued to generate positive improvements.
Continued the successful launch of Gramlin, currently the 2nd fastest growing cannabis brand in California. Gramlin is targeted at high-volume consumers and includes products across the top-selling categories, including newly launched live rosin all-in-one vapes. Currently, Gramlin products are available across the Company’s 16 retail stores, through its commerce digital sites, and at over 350 third-party retailers.
Closed a senior loan facility with J.J. Astor & Co. for up to $13.15 million, with an initial draw of $7.15 million and second draw of $2.0 million now completed. Two additional $2.0 million draws remain available to the Company.
The Company’s common shares were granted approval to quote on the OTC Market’s Group Inc.’s OTCQB Venture Market (the “OTCQB”) in the United States, under the ticker symbol “GRAM”.
Management Commentary
“We are focused on building and scaling California’s leading vertically integrated cannabis company,” said Laurie Holcomb, Chief Executive Officer and Chairman of Gold Flora. “Amid the ongoing challenges facing the broader industry, we’ve made significant strides in positioning ourselves for long-term success. We have strengthened our balance sheet through a capital raise, continued scaling the highly successful Gramlin brand, and have further optimized our vertically integrated operations to support our growth initiatives.”
Ms. Holcomb continued, “Our continued success in scaling the Gramlin brand is truly remarkable. Gramlin has become one of the fastest-growing brands in California and we are proud to report it is now among the top 10 in the state. This phenomenal achievement reflects the strength of the product, which is a direct result of the advantages of our vertical integration and the effectiveness of our go to market strategy. In Q3 we launched our first Gramlin live rosin product, following the successful build-out of dedicated rosin production facilities at our Desert Hot Springs campus. Leveraging this best-in-class infrastructure, we can create high quality rosin products at competitive prices, delivering great value for our customers and enabling us to become one of California’s leading rosin product producers. With the launch of our first rosin product in Q3, with more SKU launches planned before year end, we are confident that the benefits of this additional capacity will continue to be realized over the next several quarters.”
Ms. Holcomb concluded, “As we further scale Gramlin and ramp up our rosin production capacity, we’re in a strong position to expand our market share in California and drive meaningful revenue growth. Our focus is on delivering sustainable cash flow and long-term profitability. By optimizing our cost structure and leveraging economies of scale, we’re maximizing the value we derive from our cultivation efforts at every step. With a solid strategy in place, we’re confident in the path forward and excited about the opportunities ahead.”
Q3 2024 Financial Results
The Company’s consolidated financial statements for Q3 2024 as well as its accompanying management discussion and analysis of financial condition and results of operations (“MD&A”) will be included in its Quarterly Report on Form 10-Q filed on EDGAR as well as on SEDAR.
About Gold Flora Corporation
Gold Flora Corporation is a female founder led, vertically-integrated cannabis leader that owns and operates multiple premium indoor cannabis cultivation facilities, 16 retail dispensaries in strategic geographies, a distribution business selling first party and third party brands into hundreds of dispensaries across California, and a robust portfolio of cannabis brands and SKUs aimed at different consumer segments, including Gramlin, one of the fastest growing brands in the state across the key categories of flower, vapes, concentrates, and prerolls. The Company’s retail operations include Airfield Supply Company, Caliva, Coastal, Calma, King’s Crew, Varda, Deli, and Higher Level dispensaries, and its distribution company operates under the name Stately Distribution.
