The Parent Company Reports Fourth Quarter and Full Year 2021 Financial Results

TPCO Holding Corp. GRAMF, a leading consumer-focused California cannabis company, announced its financial results on Thursday for the fourth quarter (Q4) and full-year ended December 31, 2021.

Q4 2021 Financial Highlights

• Net sales for Q4 2021 were $39.6 million
• Direct to Consumer ("DTC") revenue was $19.9 million
• Wholesale revenue was $19.8 million
• Gross profit for Q4 2021 was $2.3 million, or 6% of net sales
• Net (income) loss and comprehensive (income) loss for Q4 2021 was $50.6 million
• Adjusted EBITDA loss for Q4 2021 was $27.5 million. Adjusted EBITDA removes the effects of changes in the fair value of financial instruments, impairment charges, and other non-cash items.

Full-Year (FY) 2021 Financial Highlights

• Net sales for FY 2021 were $173.4 million
• DTC Revenue for FY 2021 was $54.2 million or 31% of sales
• Wholesale revenue for FY 2021 was $119.2 million of 69% of sales
• Gross profit for FY 2021 was $20.2 million or 12% of net sales
• Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million
• Adjusted EBITDA loss for FY 2021 was $62 million.
• Unrestricted cash and equivalents totaled $165.3 million as of December 31, 2021

"2021 was a foundational year, as we developed an integrated omnichannel retail platform that provides us with direct access to over 80% of California's adult population," said Troy Datcher, CEO of The Parent Company. "We have added significant talent to our organization, including industry experts and seasoned professionals that provide us with the depth of knowledge and expertise we need to lead in this market."

"While the challenges in the California market remain, including low bulk wholesale flower and oil pricing, high taxes, and persisting illicit market, we have successfully begun to pivot our focus to our higher margin direct to consumer revenue, doubling DTC revenue as a percentage of sales between the first and fourth quarters," added the CEO.

"Our priority for the remainder of the year will be preserving our strong balance sheet (...) we have set a goal to maintain a minimum cash balance of approximately $100 million at the 2022 year-end, sufficient to sustain our business for a minimum of three years, and pivot to generating positive cash flow in the fiscal year 2023," Datcher explained. "I look forward to empowering more entrepreneurs of color, who continue to be disproportionately impacted by current cannabis policies while bringing our customers high-quality, culturally relevant brands."

Q4 2021 Operational Highlights

• Expanded the Company's California retail footprint to over 80% of the population through definitive agreements to acquire Coastal Holding Company, LLC, a retail dispensary license holder and operator with six retail licensed locations, five currently operating, and two delivery depots.
• In preparation for potentially being permitted to list the company's common shares and warrants on the New York Stock Exchange or the Nasdaq Stock Market upon regulatory advancement.
• Further strengthened the senior management team with the appointments of Kerry Arnold as Chief People Officer and Tiffany McBride as Managing Director of Social Equity Ventures.
• Expanded suite of edible offerings with the launch of DELI Dimes, a new gummy cannabis product available in three flavors: Black Cherry, Fresh Watermelon, and Red Berry.

Photo By esteban-lopez-On Unsplash.