MONTREAL, June 25,
2024 /CNW/ - The Good Shroom Co Inc. (the "Company"
or "MUSH") (TSXV: MUSH), an emerging player in the Canadian
cannabis industry which owns and operates a portfolio of brands
that include cannabis products and wellness beverages, announces
its financial results for the quarter ended April 30, 2024. Readers are encouraged to review
the financial statements and the accompanying Management's
Discussion and Analysis available at www.sedar.com.
FINANCIAL HIGHLIGHTS
- The Company achieved Q3 gross revenue of $1,135,991 with trailing 9 months gross revenue
of $3,773,050.
- A gross profit of $264,105 was
recorded for the quarter, with trailing 9 months gross profit of
$1,080,407.
- Notably, the Company achieved a net quarterly profit of
$30,840, marking a fifth consecutive
quarter of profitability.
- Cannabis products accounted for 96% of revenue, underscoring
the Company's strategic focus on this segment, with wellness
beverage sales of $61,665. The
Company will begin re-focusing its efforts on its wellness beverage
line as it now has the capacity to do so.
- As of April 30, 2024, the Company
maintained satisfactory working capital of $658,129 and carried no long-term debt
obligations.
- Importantly, the Company has no outstanding excise taxes owed,
demonstrating its commitment to fiscal responsibility.
Growth Strategy
The Company's approach in Quebec is defined by the unique market
dynamics where product cycles occur only twice a year, allowing few
opportunities annually to expand its portfolio and increase revenue
in any one fiscal year. While this limits the immediate ability to
introduce new products, its track record in Quebec demonstrates its ability to navigate
these cycles successfully, and it continues to build on this
foundation. The Company's strategy is not focused on short-term
gains but on sustained profitable growth over the medium to long
term.
- Annual Product Cycle: Few chances per year to expand our
portfolio.
- Proven Track Record: Consistent performance since
launching its first cannabis product less than three years
ago.
- Long-Term Focus: Emphasis on strategic growth rather
than immediate revenue.
Expanding beyond Quebec, the
Company's strategy adapts to the different market conditions in
other provinces. Unlike Quebec,
where its established approach has yielded positive results, other
provinces present markets saturated with traditional cannabis
products. Therefore, it is imperative to introduce innovative and
competitively priced products to differentiate itself from the
competition. The growth strategy involves leveraging strengths in
Quebec while innovating for
broader market appeal in other regions.
Innovation Highlight: THC-Infused Pouches
One of its key innovations is the development of THC-infused
pouches for sublingual administration, in collaboration with a
partner. This product, currently in the final stages of
development, is similar to popular nicotine pouches but with THC.
This method of administration is familiar to consumers and offers a
competitive edge in pricing due to its favorable excise tax
classification.
- Product Details: 10 pouches per unit, each containing
10mg of THC.
- Cost Efficiency: Approximately $1 of excise tax per unit, making it
competitively priced.
- Market Familiarity: Familiar method of administration
similar to nicotine pouches.
- First to Market: Potentially the first THC-infused pouch
product in the market.
The Company has received its first approval to list this line in
Alberta and expects to launch it
in late 2024/early 2025. We are submitting this product line to
various strategic provinces across Canada, anticipating market interest and
consumer adoption. This innovative product exemplifies the strategy
to introduce differentiated cannabis products in new markets,
setting the stage for continued growth.
Upcoming Product Cycles
Looking ahead, the next product cycle in Quebec occurs in October/November of this year
for which the Company has already made its submission and is
expecting to receive the submission results in August. This
upcoming product cycle is a culmination of its efforts and the
knowledge they have gained of consumer habits over the past three
years. Across Canada, various
product cycles occur at different times, and the Company plans to
participate in them strategically, especially for innovative
products like its THC-infused pouches.
CEO's Statement
"We are pleased with our financial performance this quarter,
marking our fifth consecutive quarter of net profits—an achievement
that few cannabis companies can claim," stated Eric Ronsse, Chief Executive Officer. "In less
than three years, we have managed to reach this point and we are
just getting started. Our consistent profitability underscores our
strategic focus and disciplined execution, positioning us strongly
for potential future growth. We are excited about the opportunities
ahead. In Quebec, we now
understand local consumption habits better than ever, our strategy
of navigating the unique product cycle dynamics has proven
effective and we will be doubling down on what we do here over the
next many product cycles. Additionally, we have a strategy for the
rest of Canada and beyond,
currently being developed. We are happy with our current market
position as there are opportunities that lie ahead."
Grant of Stock Options
The stock options were issued on the 20th of
June 2024, granting 100,000 options
to each member of the board of directors and the CFO. The options
have an exercise price of $0.11 per
share, which is the closing price of the Company's shares on the
TSX Venture exchange on the 19th of June 2024. The options will expire on
19th of June 2032.
On April 24th 2024
stock options were issued to a new director, Mr. Michel Dahan, in the amount of 100,000 stock
options with an exercise price of $0.135 per share. The options will expire on
April 24th 2030.
Stock options were also issued to a contractor of the Company,
Mr. Rob Leichman, in the amount of
120,000 stock options with an exercise price of $0.17 per share on January
3rd 2024. The options will expire in the
3rd of January 2027.
About the Company
MUSH operates a portfolio of brands which include traditional
cannabis and wellness beverage products.
SOURCE Good Shroom Co Inc. (The)
