MONTREAL – The Good Shroom Co Inc. (TSXV: MUSH), an emerging player in the Canadian cannabis industry which owns and operates a portfolio of brands that include cannabis products and wellness beverages, announces its financial results for the quarter ended October 31, 2023. Readers are encouraged to review the financial statements and the accompanying Management’s Discussion and Analysis available at www.sedar.com.
FINANCIAL HIGHLIGHTS
- The Company achieved revenue growth with sales of $1,510,586 a 1.8 times increase from the prior year’s quarter of $822,569.
- A gross profit $483,605 was recorded, a significant increase from the prior Q1 2023 of $181,942. The net profit of $92,126 is the highest profitable quarter to date. The same quarter last fiscal year was a net loss of ($191,569).
- 98% of revenue was generated through cannabis products, as most of its resources have been geared towards this division and sales for wellness beverages of $9,201 compared to $80,559 in the same quarter last year. This was due to lengthy production delays resulting in stock outages and its core focus remaining on Cannabis.
- Profitability achieved in Q3-2023, continued through Q1-2024.
- Working capital of $515,672 as at October 31, 2023.
- No long-term debt obligations.
“We are pleased with today’s results, marking our third consecutive quarter of positive cash flow. Our strategic focus on one market at a time, coupled with a diverse range of product categories, has proven to be a winning formula for us as a solid emerging player in Canadian cannabis.” stated Eric Ronsse, the Chief Executive Officer, and added: “Looking ahead, our primary thrust remains on expanding our footprint within our core market, Quebec, which represents a substantial market size exceeding $600 million and is anticipated to surpass $700 million this year. This robust market provides ample opportunities for growth and market share expansion. Our strategic initiatives are well-aligned to capitalize on this thriving market, reflecting our commitment to value creation for our stakeholders. The emphasis is on enhancing our presence across various product categories to steadily increase market share. Simultaneously, our recent entry into the Alberta market is showing early promise. While we may not aim for dominance in Alberta in the short term, it is shaping up to be a solid secondary market for us. We are encouraged by the initial reception of select products, and this expansion represents a strategic move to diversify our reach and capture opportunities beyond our established territories. The groundwork we’ve laid and our focus on cash flow and growth positions us for success, and we are optimistic about the journey ahead, building on our momentum and delivering appreciable shareholder value.”
About the Company
MUSH operates a portfolio of brands which include traditional cannabis and wellness beverage products.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of the Corporation with respect to future business activities and sales. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. Investors are cautioned that forward-looking statements are not based on historical facts but instead reflect the Corporation’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Corporation believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements. Among the key factors that could cause actual results to differ materially from those projected are the following: market acceptance of the Company’s hash and other cannabis products, changes in the vendor’s business or strategy, changes in our supplier’s operations and pricing, expectations regarding competition and their pricing strategy; maintaining in good standing all necessary regulatory licenses and authorizations for its products; the benefits, safety, efficacy, dosing and social acceptance of cannabis related products and no material changes in the legal environment; supply chain disruptions and shortages. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. The Company does not intend, and do not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law. Trading in the securities of the Company should be considered highly speculative.
