Canadian Cannabis Retailer Shiny Bud Corp. (CVE: SNYB) saw its sales nearly double in the past year, thanks to an expanded retail network that included a mix of new stores and recent acquisitions.
On Tuesday, the company announced its financial results for the 12 months ended Jan. 31, ending the fiscal year with $20.6 million in revenue, a 95% increase from $10.6 million for the year. former.
Gross profit increased 91% to $7.6 million from $4 million, mainly due to ShinyBud’s expanded store network.
The company expanded its store portfolio from six to 28 company-operated stores at the end of January, opening 11 new stores and acquiring 12 as part of the acquisition of 11181297 Canada Inc. and business combination with Mihi Inc. which was completed in January.
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“2022 was a momentous year for ShinyBud. We successfully completed a complex business combination and effectively integrated all entities to form ShinyBud Corp,” ShinyBud CEO Kevin Reed said in a statement.
“Along with our transition to a public entity, over the past year we have achieved significant growth and strengthened our brand while continuing to roll out our corporate store network, primarily expanding into underserved markets.
Total general and administrative expenses jumped to $9.2 million, a 315% increase from $2.2 million due to retail expansion and acquisition costs.
Gross margin fell to 34% from 38%, while adjusted EBITDA increased 21% to $2.5 million from $2.1 million a year earlier.
The company recorded an overall net loss of $5.7 million, with income of $1.4 million from store-level operations and a loss of $7.1 million from corporate operations. , including start-up costs, listing on the Canadian Venture Exchange and fees.
Earlier this month, ShinyBud announced that it had signed a binding letter of intent to acquire Cotton Mill Pharmacy for a total purchase price of $900,000. Cotton Mill has been in business since 2015 and is a fully independent, unbranded pharmacy located in Cornwall, Ontario.
To fund the acquisition, ShinyBud received a term sheet for a $700,000 million 10-year term loan for a secured acquisition from Caisse Desjardins Ontario Credit Union Inc. at an interest rate of 5.5 %.
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“In response to consumer data and industry trends, we also recently announced the expansion of our retail strategy to focus on health and wellness by introducing a new line of activities retail through community pharmacies,” Reed said.
“As we continue to focus on the profitability of our cannabis retail business, we are evaluating community pharmacy opportunities and aiming for an exciting year ahead.”
The company’s shares were unchanged on Tuesday, trading at $2.40 on the Canadian Venture Exchange.
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