Inner Spirit Holdings Ltd. (OTC:INSHF) filed its interim Financial Statements and corresponding Management’s Discussion and Analysis for the quarter ended March 31, 2020. The company delivered sales of $17.2 million, which was an increase of 814% from last year’s $1.9 million for the same time period. Inner Spirit reported a total net loss of $1.9 million, or $0.01 per share versus $2.0 million, or $0.01 per share, in the first quarter of 2019.
“The Company’s financial results for the first quarter show impressive year over year growth with more than $17 million recorded in system-wide retail sales1 for the Spiritleaf network. We are making steady progress with our business strategy and towards achieving profitability. We continue to expand the Spiritleaf network of franchised and corporate-owned stores due to the excellent support and loyalty of our customers, investors, franchise partners, strategic partners and employees. We have built a strong platform which we will leverage in 2020 to generate future growth and opportunity with more than 30 additional store locations projected to be added by the end of the year,” said Darren Bondar, President, and CEO of Inner Spirit.
The company reported an adjusted EBITDA loss of $0.1 million compared with an adjusted EBITDA loss of $1.5 million in the first quarter of 2019. The cash and cash equivalents were 3.8 million at the end of the period, which includes a short-term deposit of $1.2 million that is redeemable into cash at any time.
Inner Spirit said that six additional Spiritleaf stores have completed construction and are in the final stages of licensing in Calgary and Red Deer, Alberta and in Toronto, Ottawa, and London, Ontario. The Spiritleaf retail cannabis store network includes franchised and corporate-owned stores operating in Alberta, British Columbia, Saskatchewan, and Ontario.
Due to the COVID-19 pandemic, Spiritleaf stores are operating with enhanced customer service processes to ensure the safety of employees and customers. Spiritleaf’s Select & Collect service enables customers to pre-shop and order online prior to pick-up. Customers can also connect with their local Spiritleaf store through The Collective customer benefits program to further streamline and individualize their shopping experience.
“We are excited to continue our expansion of the Spiritleaf brand into Newfoundland and Labrador and into Ontario as well as to complete the acquisition of the Spiritleaf store in Kingston which had previously operated under a licensing agreement with one of the province’s initial lottery winners. Along with recognizing these store openings and for being the first retailer to surpass the 50-store milestone in Canada, we are pleased to announce our third contribution to the Gord Downie & Chanie Wenjack Fund as a legacy partner in this important venture. With a portion of every sale invested back into our communities, it’s great to be putting roots into additional communities and to provide a premier retail cannabis experience to customers with our educated and passionate local owners and employees,” said Bondar.
The company’s key industry partners and investors include Auxly Cannabis Group Inc. (TSX.V:XLY), HEXO Corp (TSX:HEXO), Tilray, Inc. (NASDAQ:TLRY) and Prairie Merchant Corporation.