Goodness Growth Holdings Inc. (CSE: GDNS) (OTCQX: GDNSF) shared its financial results for the first quarter ending March 31.
The Minneapolis-based company reported a 22.1% rise in sales compared to the same time last year, climbing to $19.1 million for the period. Net loss was cut to $8.4 million, down from $14.5 million in the same period a year ago.
CEO Josh Rosen expressed optimism about the company’s trajectory, attributing the growth to the success of their operations in Maryland, Minnesota, and New York. Following the closure of their outdoor farming activities in Arizona, the company has seen a steady return on its investments.
“Our first-quarter results demonstrate a continuation of the trends we discussed last quarter, with revenue growth in each of our core markets and gross margin performance that has stabilized since the wind down of our former outdoor operations,” Rosen said in a statement.
Rosen also discussed a $10 million loan that the company secured this month. The funding will provide the company with the financial flexibility to further its business plans for the year, he said. These plans include improving the quality and affordability of their offerings and preparing for potential changes in legislation that could open up more markets for their products.
Amber Shimpa, who leads the company’s subsidiary in Minnesota, Vireo Health, highlighted a shift in how the company manages its teams, which gives more decision-making power to teams at the state level. The move resulted in improved profit margins.
Following changes in the company’s management, it’s also been able to operate more efficiently and reduce overhead costs.
Shimpa also noted an improvement in the quality of their cannabis flower harvests, which is crucial for the company to reach its goals for the year.
“We will continue to provide transparency into these key metrics moving forward so investors can better evaluate the trajectory of our business,” Shimpa said.
The company also made some beneficial adjustments to its credit facility with Green Ivy, an affiliate of Chicago Atlantic, reducing its cash outflows and pushing back the due date of the loan to April 2024.
In April, Goodness Growth secured a $2 million loan that can be converted to company stock. The loan could potentially increase to $10 million and has a three-year term with an annual interest rate of 12 percent.
As of the end of March 2023, the company had $115.2 million in current assets, including $10.3 million in cash. It had $96.4 million in current debts.
By May 1, following the closure of the convertible loan, Goodness Growth had a total of 141,143,954 shares, with the potential for this number to increase to 196,043,572 when including options and other forms of potential stock.