Some key hilights from the report:
GL Brands (Formerly Freedom Leaf) Announces Fiscal First Quarter 2020 Financial Results
Q1 2020 Revenue Increases 248% from Q1 2019
Dallas, TX – February 3, 2020 – GL Brands, Inc. (OTCQB: FRLF), a global hemp consumer packaged goods company based in Dallas, TX, announced today its financial and operational results for the first fiscal quarter of fiscal 2020 ended September 30, 2019. The Company achieved record sales in the quarter, with gross revenue reaching $2.12 million compared to $609K in the first quarter of 2019, representing an increase of 248%.
Financial and Operational Highlights for Fiscal Q1 2020
· Quarter revenue reached an all-time high of $2.12 million, an increase of 248% from $609K in Q1 2019. In addition, Q1 2020 revenue nearly matched the $2.3 million of revenue generated in fiscal 2019.
· The Company achieved a gross margin of 69% compared to 56% in the prior year quarter ended September 30, 2018, due to lower COGS and more efficient operations.
· GL Brands, through its partnership with CBD Life SA, completed two shipments of hemp-CBD products to Mexico, positioning the Company as the first U.S. hemp-CBD producer to be approved for the distribution and export of commercial CBD products to Mexico, reaching 3,000 points of sale.
· Completed the integration of the newly merged ECS Labs (Green Lotus) and Freedom Leaf. The Company reported a net loss of $14.5 million, primarily attributable to $13.7 million of one-time, non-cash expenses related to the restricted stock awarded and cash compensation to the ESC Labs management team as part of the Green Lotus acquisition.
The Company realigned its operations in the first quarter to focus on delivering a first-in-class consumer packaged goods portfolio to the global hemp market through its two hemp CBD product lines, Green Lotus™ and IrieCBD. The financial and operational results of this quarter reflect the successful implementation of the Company’s business strategy.
Mr. Carlos Frias, Chief Executive Officer of GL Brands, commented, “The first quarter of 2020 was a pivotal period in our Company’s growth with both an acceleration of revenue generating business, as well as, a rapidly growing hemp CBD consumer packaged goods brand. Our Green Lotus™ and IrieCBD products are now on the shelves at over 2,000 retail locations in the U.S. and 3,000 retail pharmacies in Mexico. As we move forward in 2020, we are strongly positioned to further expand our market presence through key distribution and retail partnership agreements in the U.S. and abroad.”
“Our ability to ramp up sales and expand our distribution network in North America through key distribution and retail partnerships quickly solidified our emerging position as a leading global hemp consumer packaged goods company. Moving forward with strong operating efficiencies in place, we are well positioned to significantly improve both our top and bottom line results in the coming quarters.”
Subsequent Events:
Continued Expansion of Global Retail Distribution Network
· Signed a distribution agreement with Greenlane Holdings, Inc., a leading North American cannabis and CBD distribution network reaching 11,000 retail locations across the U.S., adding between three to four thousand new points of sale for GL Brands in North America.
· Completed a third commercial shipment of Green Lotus™ premium hemp products to 3,000 pharmacy locations in Mexico through CBD Life SA. The Company will continue to further expand its retail footprint in Mexico starting in the third quarter of 2020. The Company plans to grow its Mexico footprint with additional SKU’s and distribution to an expected 40,000 retail locations by 2023.
GL Brands (Formerly Freedom Leaf) Announces Fiscal First Quarter 2020 Financial Results
Q1 2020 Revenue Increases 248% from Q1 2019
Dallas, TX – February 3, 2020 – GL Brands, Inc. (OTCQB: FRLF), a global hemp consumer packaged goods company based in Dallas, TX, announced today its financial and operational results for the first fiscal quarter of fiscal 2020 ended September 30, 2019. The Company achieved record sales in the quarter, with gross revenue reaching $2.12 million compared to $609K in the first quarter of 2019, representing an increase of 248%.
Financial and Operational Highlights for Fiscal Q1 2020
· Quarter revenue reached an all-time high of $2.12 million, an increase of 248% from $609K in Q1 2019. In addition, Q1 2020 revenue nearly matched the $2.3 million of revenue generated in fiscal 2019.
· The Company achieved a gross margin of 69% compared to 56% in the prior year quarter ended September 30, 2018, due to lower COGS and more efficient operations.
· GL Brands, through its partnership with CBD Life SA, completed two shipments of hemp-CBD products to Mexico, positioning the Company as the first U.S. hemp-CBD producer to be approved for the distribution and export of commercial CBD products to Mexico, reaching 3,000 points of sale.
· Completed the integration of the newly merged ECS Labs (Green Lotus) and Freedom Leaf. The Company reported a net loss of $14.5 million, primarily attributable to $13.7 million of one-time, non-cash expenses related to the restricted stock awarded and cash compensation to the ESC Labs management team as part of the Green Lotus acquisition.
The Company realigned its operations in the first quarter to focus on delivering a first-in-class consumer packaged goods portfolio to the global hemp market through its two hemp CBD product lines, Green Lotus™ and IrieCBD. The financial and operational results of this quarter reflect the successful implementation of the Company’s business strategy.
Mr. Carlos Frias, Chief Executive Officer of GL Brands, commented, “The first quarter of 2020 was a pivotal period in our Company’s growth with both an acceleration of revenue generating business, as well as, a rapidly growing hemp CBD consumer packaged goods brand. Our Green Lotus™ and IrieCBD products are now on the shelves at over 2,000 retail locations in the U.S. and 3,000 retail pharmacies in Mexico. As we move forward in 2020, we are strongly positioned to further expand our market presence through key distribution and retail partnership agreements in the U.S. and abroad.”
“Our ability to ramp up sales and expand our distribution network in North America through key distribution and retail partnerships quickly solidified our emerging position as a leading global hemp consumer packaged goods company. Moving forward with strong operating efficiencies in place, we are well positioned to significantly improve both our top and bottom line results in the coming quarters.”
Subsequent Events:
Continued Expansion of Global Retail Distribution Network
· Signed a distribution agreement with Greenlane Holdings, Inc., a leading North American cannabis and CBD distribution network reaching 11,000 retail locations across the U.S., adding between three to four thousand new points of sale for GL Brands in North America.
· Completed a third commercial shipment of Green Lotus™ premium hemp products to 3,000 pharmacy locations in Mexico through CBD Life SA. The Company will continue to further expand its retail footprint in Mexico starting in the third quarter of 2020. The Company plans to grow its Mexico footprint with additional SKU’s and distribution to an expected 40,000 retail locations by 2023.
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