Gage Cannabis Turns In Solid Fourth Quarter, Fiscal Year - Grow Life 420

Gage Cannabis Turns In Solid Fourth Quarter, Fiscal Year

April 29, 2021

#KahliBuds #MMJ #CBD #THC

Michigan-based Gage Growth Corp.  (CSE: GAGE) reported its financial results for the three and twelve months ended December 31, 2020. Gage said revenue increased 615% to $10.5 million in the fourth quarter over last year. Gage also reported that its revenue increased 1,972% for the full year to $39.9 million versus $1.9 million in fiscal year 2019. The company also trimmed its net losses to $29.8 million from 2019’s net loss of $75 million. the company had a stellar 420 holiday and logged revenue of over $505,000 in a single day with average basket size of $171 and 2,956 total transactions.

“Throughout 2020, we worked to establish Gage as one of the leading vertically integrated cannabis companies in Michigan. We strategically invested in the infrastructure and human capital necessary to build scale, leveraging our first-mover advantage and strong brand to own the Michigan market,” said Fabian Monaco, CEO of Gage. “We are thrilled with the results of our efforts, demonstrated by the strong revenue growth and margin expansion we have achieved. Gage is approaching an exciting inflection point, which we believe will enable us to extend our strong growth as we look ahead to 2021.” The company said it closed its fiscal year with over $45 million of cash after closing the first tranche of oversubscribed Regulation A, Tier 2, equity financing.

Gage also noted that at this time it has eight cultivation facilities in operation today (three Gage operated and five contracted cultivation assets) and is expecting to expand to 13 cultivation facilities by year-end. The cultivation capacity is expected to increase to 3,000lbs/month in June/July 2021 and further expand to 7,000lbs/month by year-end. Gage said it expects to operate in-house processing assets in the third quarter of 2021 leading to further margin expansion.

The company’s average basket size in 2020 was $164 compared to the estimated state average basket size of $85. The company reported that it continues to see a range of $150 – $170 per average basket size in 2021. Additionally, Gage is targeting $1 million average in revenue per month for each dispensary it operates in 2021. Gage’s average monthly revenue over the past 60 days per dispensary is in excess of $1 million. Moreover, excluding one particular location situated in a tourist-heavy location that has been significantly impacted by the COVID-19 pandemic, the average monthly revenue for each dispensary was approximately $1.3 million in March 2021. Currently, four Gage-operated dispensaries have been performing in the past 60 days at an annual run rate in excess of $15 million.

Looking Ahead

“Overall, we are well-positioned to further scale our business and execute on our expansion strategy in 2021,” said Monaco. “We are excited to build on our momentum and are already seeing great performance evidenced by our record monthly revenue in March and seeing the trend continue into April driven by the success of our new store launches and strength of our brand in the market. We are projecting to set another consecutive monthly revenue record in May with two more store openings.” April revenue is looking like it is growing 5-6% sequentially over March.

Gage gave investors guidance for the next two quarters based on consumer demand.  The company said that it expects revenue in the range of $17-18 million in the first quarter of the fiscal year 2021 and $26-$31 million for the second quarter.

Mr. Monaco added, “Michigan continues to report robust cannabis sales, and in March of this year, the state posted $146 million of cannabis sales, which represents an annualized run rate of approximately $1.8 billion. We believe Michigan will be a top-five largest cannabis market in the United States this year.”

Expansion Plans

Gage said it continues to execute on its retail expansion strategy with the goal of opening 20 or more locations by year end. It expects to open two locations in May 2021, bringing its total retail footprint to ten. Two additional Cookies branded dispensaries expected to open in Q2/Q3 2021.

 

The post Gage Cannabis Turns In Solid Fourth Quarter, Fiscal Year appeared first on Green Market Report.



420GrowLife

via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife

  • Share:

You Might Also Like

0 comments