Body And Mind Shares Drop Slightly On FY 2022 Gross Profit Decrease Of 9% YoY

Body and Mind Inc. BMMJ BAMM released financial results for the fiscal year ended July 31, 2022, revealing revenue of $31.6 million, a 17.6 % increase over FY 2021 revenue of $26.9 million.

FY 2022 Financial Highlights

• Gross profit of $10.9 million for FY 2022 compared to a gross profit of $ 12.0 for FY 2021.

• Net loss was $28.2 million (or basic and diluted loss per share of $0.25) compared to a FY 2021 net loss of $2.0 million (or basic and diluted loss per share of $0.02).

• Adjusted EBITDA loss of $1.4 million for FY 2022 vs. adjusted EBITDA of $ 3.9 million in FY 2021.

• Total current assets were $8.0 million, total assets were $31.0 million, total current liabilities were $6.6 million and total liabilities were $20.9 million at July 31, 2022.

Subsequent to the end of FY 2022:

• Closed a $3 million unsecured convertible debt financing with Bengal Capital and Mindset Capital.

• Announced that Bengal Capital partner Josh Rosen would be joining the company's board of directors.

• Closed a merger with CraftedPlants NJ, an entity that leases a New Jersey retail location with local cannabis-use approval for a retail location and is currently working on attaining final state licensure in New Jersey, with nearly all merger consideration tied to attainment of specific licensing and operational milestones.

"As we report the highest annual revenue in BaM's history, we are excited and focused on the next stage of our development. Specifically, as we start calendar 2023, we are focused on the following priorities:

1. Augmenting Core Accounting Team: As cannabis operators first and foremost, we are intentionally spendthrift with respect to overhead expenses. In order to improve the timeliness of our financial reporting we are in the process of making modest additions to our accounting team.

2. Focus Resources on Successful Launch of New Markets: We believe that our best return on capital projects in the near to medium term are our two recently issued retail cannabis licenses in Illinois and our New Jersey retail project.

3. Remain Operations-Focused in Existing Markets: We believe our core operating ability, both in retail cannabis and craft cultivation, is an under-appreciated asset which we are capitalizing on by entering new markets in capital efficient ways. We also plan to continue to drive operating efficiencies in our existing, more mature markets to hone our battle-tested capabilities and to improve our cash flow generation.

4. Prudently Evaluate Complementary Opportunities: We remain open to augmenting our platform with capital efficient opportunities that map to our capabilities, particularly within our newer markets. Given the attractiveness of our current projects, we plan to stay patient and only pursue opportunities that we believe meet high return thresholds. "

I look forward to updating investors on our advances in line with these priorities as the year progresses," stated Michael Mills, CEO of Body and Mind.

The company had 146.6 million common shares outstanding as of January 13, 2023.

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