The Green Organic Dutchman 2021 Revenue Grew 149% To $31.36M

The Green Organic Dutchman Holdings Ltd. TGODF TGOD reported its results for the three months ended December 31, 2021 and for the twelve months ended December 31, 2021.

Fourth Quarter and Year-End 2021 Financial Highlights

• Gross revenue of CA$39.19 million ($31.36 million) for fiscal year 2021, a 149% increase over last year

• Achieved record quarterly net revenue of CA$9.47 million, a 30% increase quarter over quarter

• Achieved record quarterly gross revenues of CA$12.37 million, a 27% increase quarter over quarter; with record monthly gross revenue of CA$5.18 million in December 2021

• Adjusted EBITDA loss was CA$3.31 million for Q4 2021, representing a 40% improvement compared to Q3 2021, and was CA$22.60 million for the Fiscal Year being a 35% improvement of CA$11.93 million over 2020.

• Improved gross margin (before changes in fair value adjustments) to 32% for Q4

• Sales in medical cannabis products increased by 79% during Q4 2021 to CA$0.99 million, in comparison to CA$0.55 million in Q3 2021.

• Loss from operations in Q4 2021 of CA$5.67 million, an improvement of CA$3.48 million from Q3 2021. Losses from operations were CA$28.74 million for fiscal year 2021, compared to CA$40.96 million for the same period in the prior year primarily due to the improvement in revenues and reduction of G&A expenses.

• As of December 31, 2021, the company had a positive working capital of CA$25.72 million

• "We closed 2021 with strong momentum as we saw significant growth quarter-over-quarter, reflecting continued execution of our strategic plan as we remain focused on quality, consistency and transparency. We are seeing the early benefit of our enhanced sales strategy which has accelerated sell-through. Our two-prong approach of on-boarding key retail chains while having boots on the ground with our dedicated sales force is starting to bear fruit," stated Sean Bovingdon, CEO of TGOD. "We are on track to hit our positive Adjusted EBITDA target in Q2 2022, with continued monthly sales progression from the strong month of December," added Bovingdon.

Other Highlights

• On November 4, 2021, the company entered into a definitive agreement with Acosta Canada Corp for exclusive and dedicated sales representation of TGOD's adult recreational cannabis brands in key provinces across Canada.

• TGOD is now in 1,554 stores across the country

• Completed strategic acquisition of Galaxie Brands Corporation, the exclusive Canadian producer of Wyld edibles

Recent Milestones

• On March 10, 2022, the company announced that it had amended and restated the credit agreement dated September 29, 2021, as amended by a first amendment dated November 20, 2021, relating to the revolver loan. The company and its Canadian lender agreed to, among other things: 1) increase the revolving facility limit by CA$5.0 million to CA$30.0 million 2) allow certain eligible inventory to be included as collateral and 3) relax certain covenants set forth in the credit agreement; subject to the satisfaction of the various conditions set out therein.

  • All other terms of the credit agreement will remain the same as before, including the maturity date of June 30, 2023.

• Member of the board of directors and chair of the audit committee Nicholas Kirton has announced his retirement from the board.

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