MJardin Group, Inc. (OTCQX: MJARF) announced its financial and operating results for its fourth quarter and fiscal year ended December 31, 2020. MJardin also announced it was considering strategic alternatives due to its limited financing.
The company delivered revenue of $2.2 million in the fourth quarter of 2020 versus $1.3 million for the same time period in 2019. The net losses were trimmed in the quarter to $21.4 million from last year’s net loss of $234 million for the same quarter in 2019. The company also said that it was switching from being a wholesaler to a retail only business.
MJardin reported revenue of $11.4 million for the full year 2020, which was a big drop from last year’s net revenue of $26.7 million in 2019. The net losses were trimmed in 2020 to $34.8 million versus 2019’s net loss of $267.5 million. The company said this included a $16.0 million impairment related to intangibles and PP&E in 2020 and $191.7 million impairment related to goodwill, intangibles, and PP&E in 2019.
“2020 was a challenging year for all in our business as we were forced to rapidly adapt to changing circumstances due to COVID-19 and its impact on both our staffing and construction timelines,” said Pat Witcher, MJardin’s CEO. “I am very proud of how the team at MJardin performed, and as of the fourth quarter of 2020, MJardin’s assets in Ontario are fully populated and operating at run-rate. As we move into 2021, I look forward to the continued development of our partnership with ROBES as well as the roll-out of our consumer-facing brand, Flint & Embers.”
The Board of Directors said it has formed a special committee to explore, review and evaluate a broad range of strategic alternatives for the company due to its limited capital resources with a view to identifying a transaction that is in the best interests of shareholders. These alternatives may include continuing as a standalone public company, going private, undertaking a recapitalization or other restructuring transaction, or being purchased by a strategic partner.
Since the end of the quarter, MJardin announced the completion of a major supply agreement with the BCLDB to supply the British Colombia provincial wholesaler with products for the retail market under MJardin’s Flint & Embers brand. The company also announced the completion of a major supply agreement with the AGLC to supply the Alberta provincial wholesaler with products for the retail market under MJardin’s Flint & Embers brand. Finally, MJardin agreed to an early settlement of the previously disclosed final payment from Harvest Health & Recreation for the purchase of the Cheyenne facility located in Las Vegas, Nevada.