SLANG Worldwide Inc. SLGWF SLNG released financial results for the three months ended March 31, 2022, revealing revenue of CA$8.37 million ($6.54 million) , compared to Q1 2021 revenue of CA$9.09 million.
Q1 2022 Financial Highlights
Gross profit of CA$3.66 million (44% gross margin) in Q1 2022, compared with CA$3.90 million (43% gross margin) in Q1 2021.
Adjusted EBITDA of (CA$1.63 million) in Q1 02022, compared with (CA$349,000) in Q1 2021.
The company reduced operating expenses from continuing operations by CA$3.57 million, or 32%, in Q1 2022 when compared to Q4 2021, which is a result of the cost cutting and restructuring initiatives implemented over the last two quarters.
CA$16.56 million in cash and restricted cash on March 31, 2022, compared to CA$20.83 million on December 31, 2021.
Drew McManigle, interim CEO and chairman of SLANG, stated, "We entered 2022 as a new company, advancing a more streamlined and efficient infrastructure to more effectively operate and expand in today's largest and fastest growing cannabis markets. We are recognizing higher margin sales due to the successful implementation of our transformational growth strategy, eliminating non-performing assets and consolidating our supply chain. I am pleased to report that we have reduced our operating expenses by 32% while increasing our gross margins. I believe we will continue upon this path to recognize stronger financial results going forward and successfully scale our operations in our Core and Emerging markets."
First Quarter 2022 Operational Highlights
Continued build-out of Vermont operations following the acquisition of High Fidelity, Inc.
Continued wind down and elimination of non-performing assets, including manufacturing operations of all SLANG branded THC products in Oregon and cultivation operations in Colorado, in order to advance its restructured growth strategy focused on cost control, operating efficiencies and an optimized infrastructure.
498,476 SLANG branded units were sold across The SLANG Network in the three months ended March 31, 2022.
Subsequent Quarterly Operational Highlights
Launched operations in Michigan through an exclusive strategic partnership with a leading high-quality premium cannabis brand and operator in the state in May 2022, beginning with the launch of the company's best-selling, premium vape produce line, O.pen Daily Strains.
Launched operations in Maryland through a strategic partnership with Trulieve Cannabis Corp. TCNNF This is the third market that SLANG has entered in partnership with Trulieve.
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