Vibe Growth Q3 Revenue Declines 3.6% Sequentially To $5.5M

Vibe Growth Corporation VIBEF VIBE released its 2022 third quarter financial results, revealing revenues of $5.52 million, a 3.6% decrease compared to $5.73 in the second quarter of 2022.

Q3 2022 Highlights

As of September 30, 2022, Vibe's cash position was $6.0 million;
Dispensary gross margin increased to 33.6% in the quarter and 36.6% in the 2022 nine-month period compared to 29.9% and 32.6% in the comparative three and nine-month periods of 2021;
EBITDA loss and Adjusted EBITDA loss of $450,381 and $208,643 compared to EBITDA and adjusted EBITDA of $366,551 and $428,041 in the second quarter of 2022;

"The Vibe team continues to focus on building its California dispensary portfolio and integrating its most recently opened new stores in Ukiah and Salinas. We have implemented new sales and marketing initiatives dedicated to growing our Hype brand and improving operational business efficiencies, along with efforts to increase our margin profile. We have also decreased our emphasis on high revenue, low margin products, which has contributed to lower revenues but stronger net results," stated Vibe CEO Mark Waldron.

New Product Introductions

Vibe launched 20 new Hype Cannabis Co. SKUs in November 2022 that are currently available in its retail stores and online. Vibe also bolstered its cultivation operations in the third quarter, adding over a dozen of the latest elite phenotypes to its genetic library. The new cultivars were carefully selected to meet customer demand for THC potency and flavorful terpene expression. The new genetics will be available in several new Hype Cannabis Co. products launching in December 2022 and January 2023.

Cultivation Expansion

Construction is underway of Vibe's flagship 10-acre cultivation facility in Monterey County, with a 17,000 square foot enclosed, UV-resistant Polyethylene greenhouse. Greenhouse materials required to complete phase 1 of the low iron glass 70,000-square-foot facility have been manufactured, paid in full, and delivered to the company. Final completion of phase 1 construction will proceed upon regulatory approval of revised grading plans submitted by the company to reduce construction costs related to stormwater retention. The contracted price to assemble the 70,000-square-foot Dutch Glass greenhouse for phase 1 is $300,000 plus site work costs that will be re-tendered to local contractors upon county approval. The new MC phase will represent one of the best combinations of high-quality/low-cost output in the State of California.

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