Key Takeaways
- CFO John Heller departs Goodness Growth Holdings, effective September 30, with Interim CEO Josh Rosen to assume additional CFO responsibilities.
- Financial results for Q2 2023 reveal a 7.0% increase in GAAP Revenue and a 156.5% surge in EBITDA compared to Q2 2022.
- The company makes strategic moves, including entering agreements to rebrand two Maryland dispensaries and finalizing a strategic agreement with Grown Rogue International, Inc.
The CFO's Exit
Minneapolis, MN--Goodness Growth Holdings, Inc. announced the departure of its Chief Financial Officer, John Heller, effective September 30, to pursue a new external opportunity.
According to a news release published on Businesslend, CEO Josh Rosen will also assume the role of Chief Financial Officer in the interim.
During his three-year tenure, Heller was acknowledged by Executive Chairman Dr. Kyle Kingsley and Interim CEO Rosen, who expressed confidence in the existing finance and accounting team to continue fulfilling CFO responsibilities.
Heller, appreciative of his time with the company, believes he's leaving it in capable hands.
Q2 2023 Financial Highlights
According to a Globe Newswire release, in its second quarter financial report for 2023, Goodness Growth posted a 7.0% increase in GAAP revenue, amounting to $39.3 million for the first half of 2023 compared to $36.7 million during the same period in 2022.
The company experienced a 156.5% increase in EBITDA, with $2.8 million reported in Q2 2023 compared to $1.1 million in Q2 2022.
The financials showed continued revenue growth in core markets, especially Minnesota and Maryland, and efforts towards operational improvement and balance sheet de-risking.
Strategic Initiatives
Per the release, the company highlighted several strategic moves, including:
- The divestiture of former New Mexico operations and progressing towards the divestiture of New York operations.
- Entering consulting, licensing, and wholesale agreements to rebrand two Maryland dispensaries, aiming for improved market penetration.
- A strategic collaboration with Grown Rogue International, Inc., to enhance the quality and yield of its cannabis flower products in Maryland and Minnesota.
- Closing a U.S. $2.0 million tranche of a new convertible debt facility, with $5.0 million drawn to date, aiming for better financial flexibility.
Balance Sheet Update
As of June 30, 2023, Goodness Growth reported total assets of $126.4 million, including $11.3 million in cash on hand, against total current liabilities of $157.0 million.
What Do We Think
The departure of CFO John Heller marks a notable change in Goodness Growth's leadership.
However, the transition may remain smooth with a solid finance and accounting team in place, as acknowledged by both Heller and the company’s executives.
The Q2 2023 financials reflect a positive trajectory in revenue and EBITDA, showing the company’s resilience and potential growth in core markets.
The strategic initiatives and financial maneuvers indicate a focused approach toward improving operational efficiencies, market penetration, and financial stability.
These elements suggest a proactive strategy by Goodness Growth to navigate industry challenges and position itself favorably for future growth.