Body And Mind Stock Soars Despite Q1 Profit Plummeting YoY, Here Is What You Need To Know

Body and Mind Inc. BMMJ BAMM released financial results for the first quarter of fiscal year 2023 ended October 31, 2022, revealing revenue of $7.8 million, a 3.4% increase over Q1 FY 2022 revenues of $7.6 million.

Q1 FY 2023 Financial Highlights:

• Gross profit was $1.6 million, a 50% decrease compared to a gross profit of $3.2 million for Q1 FY 2022.

• Net loss was $3.0 million (or basic and diluted loss per share of $0.03) compared to a Q1 FY 2022 net loss of $700,000 (or basic and diluted loss per share of $0.01).

• Adjusted EBITDA loss was $1.6 million, compared to positive adjusted EBITDA of $800,000 in Q1 FY 2022.

• Total current assets were $6.7 million, total assets were $29.0 million, total current liabilities were $7.6 million and total liabilities were $21.9 million at October 31, 2022.

Other Highlights:

• Closed a $3 million unsecured convertible debt financing with Bengal Capital and Mindset Capital, two experienced cannabis-focused funds, and announced that Bengal Capital partner Josh Rosen would be joining the company's board of directors.

• Closed a merger with CraftedPlants NJ, Inc., an entity that holds a lease on a New Jersey commercial property with local cannabis-use approval for a retail location with nearly all merger consideration tied to successful completion of specific licensing and operational milestones.

• Commenced tenant improvement construction on the first of two Illinois adult-use dispensaries.

• Submitted New Jersey state license application in conjunction with BaM Body and Mind Dispensary NJ, Inc. f/k/a CraftedPlants NJ, Inc. Commenced design, architectural and planning work for the New Jersey location.

Price Action

Body and Mind shares were trading 16.89% higher at $0.073 per share at the time of writing Wednesday morning.

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