#KahliBuds #MMJ #CBD #THC

Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF), reported its fiscal first quarter 2023 results for the three months ended Jan. 31, 2023. Grown Rogue‘s revenue grew 21% to $4.5 million versus last year’s $3.7 million in the same time period. The company also reported a net income of $592,000.

“We continue to demonstrate our operating abilities by generating substantial free cash flow margins while operating in extremely competitive markets. Our financial results for Q1 2023 were improved from Q4 2022 due to of our continued pursuit of operating efficiencies, and a modest increase in average wholesale pricing in Oregon,” said Obie Strickler, CEO of Grown Rogue.

The company reported operating cash flow, before changes in working capital, of $1.3 million, compared to $500,000 in the 2022 first quarter, an increase of 176%. The free cash flow was $800,000, after $400,000 was spent on working capital and capital expenditures.

While the news was positive, the company still lists itself as a going concern and has historically incurred net losses. The company’s accumulated deficit was approximately $19.5 million.

“As we move forward, we are proactively ramping up our genetics programs in both Oregon and Michigan to make sure we stay on the front line of delivering industry-leading quality to our consumers. We believe that our philosophy and practice of constant iteration and improvement will engender more customer trust and deepen the relationship we have with our existing fans,” Strickler continued.

Michigan Sales Jump

Sales in Michigan grew from $3.7 million in 2022’s first quarter to $4.1 million. Sales in Oregon fell from last year’s $4.7 million to $4.4 million as expenses increased slightly.

During the year ended Oct. 31, 2021, the company leased Lars, a facility in Medford, Oregon, that is owned by the CEO, with a term through June 30, 2026. Lease charges for Lars of $46,814 (2022 – $45,450) were incurred for the fiscal first quarter. The lease liability for Lars on Jan. 31, 2023, was $575,375 (October 31, 2022 – $607,900).

“Regarding capital allocation, we continue to focus on producing free cash flow to best position ourselves to meet our balance sheet obligations while being prepared for new market opportunities, using only a modest amount on increased working capital,” Strickler said. “With our internal cash generation and the recent $2 million convertible debenture capital raise, we feel confident in our ability to take advantage of high-quality opportunities as they arise.”

CEO Spouse Deal

The company also disclosed in its quarterly filing that during the quarter, Grown Rogue incurred expenses of $23,077 (2022 – $15,000) for services provided by the spouse of the CEO.

According to the filing, on Jan. 31, accounts and accrued liabilities payable to this individual were $3,846 (October 31, 2022 – $1,154). The spouse of the CEO was granted 500,000 options during the quarter.

During the quarter  1,500,000 options were granted to the CEO; 750,000 options were granted to the CFO; and 750,000 options were granted to the SVP.

The post Grown Rogue Gets Boost from Michigan Sales appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife