Chalice Brands, Ltd. (OTCQB: GLDFF) (CSE: CHAL), formerly known as Golden Leaf Holdings, Ltd., is a Portland, Oregon-based cannabis company, which is focused on the production, processing, wholesale, distribution and retail of consumer cannabis products. Chalice Brands owns and operates seven licensed dispensaries in the Portland region. The cannabis company recently reported first quarter 2021 financial results, as well as a plethora of new updates.
Chalice Brands Reports Record Revenues of $5.5 Million During Q1 2021
During the first three months of 2021, Chalice Brands reported record total revenues of $5.5 million, which represents year-over-year growth of 18%. Gross profits expanded to $2.5 million, improving gross margin to 45%. Adjusted EBITDA came in at $370,000, showing a second consecutive quarter of positive adjusted returns.
Jeff Yapp, Chief Executive Officer of Chalice Brands, commented, “Continued profitable operations and accretive acquisitions should set us up for a record breaking second half of 2021. We continue to look forward to favorable federal regulation changes while we grow Fifth & Root to showcase our brand portfolio nationally. Our team is energized and focused on growth as we remain disciplined in our allocation of capital.”
Additional Updates and Accomplishments
On May 19, 2021 the cannabis company announced that it has entered into a letter of intent to acquire Homegrown Oregon, a cannabis dispensary chain with five retail locations in the state. If the acquisition is completed, Homegrown Oregon will add $11 million in additional annual revenues and over $2 million in adjusted EBITDA after integration.
Chalice Brands had previously announced the acquisition of an 80% stake in the CBD skincare brand, Fifth & Root. The CBD brand has a national footprint with products available in over 400 retail locations across the United States.
During the annual general meeting of shareholders on May 10, 2021, 415 investors voted in favor of changing the company’s name to “Chalice Brands,” along with a consolidation of its share structure, which went into effect on May 25th.
Management announced that C$3.7 million worth of convertible debentures were converted into equity during the first quarter. Chalice now has a convertible outstanding balance of C$4.4 million. However, the company was able to restructure convertibles that were due November 16, 2021. The restructuring extends the term one year to November 16, 2022 and reprices the conversion from C$0.30 to US$0.06.