Blüm Holdings, Inc. (OTCQB:BLMH) reported its financial results Wednesday for the first quarter ended March 31, 2024, revealing revenue of $6.78 million, down by 16% from $8.1 million in the same period of 2023. The California cannabis company attributed the revenue decline to the continued elimination of non-performing legacy operations during the first quarter of 2024 and transitioning a single retail location to delivery only.

"Despite challenges, our commitment is to maintain a strong gross margin and reduce operating expenses," Patty Chan, Blüm's chief financial officer stated. "We remain optimistic about the opportunities ahead and are confident in our ability to capitalize on them."

More about investments and financial data from the industry you can hear at the 19th Benzinga Cannabis Capital Conference in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry’s future. Secure your tickets now before prices increase by following this link.

Q1 2024 Financial And Operational Highlights

• Gross profit was $3.61 million, or 53% versus $4.38 million or 54% in the first quarter of last year.  
• Net loss from continuing operations was $3.06 million or $0.31 loss per share, compared to net loss of $7.81 million or $0.84 loss per share in the comparable period of 2023.  
• Operating expenses amounted to $6.1 million, a decrease of 34% from $9.25 million in the first quarter of 2023.  
• For five consecutive quarters in a row, the company has maintained a gross margin of above 50%, landing at 53% for the first quarter of 2024.
• In line with its strategic realignment, Blüm divested its final California cultivation facility in January 2024, focusing on expanding profitable cannabis assets and brand development.
• Earlier this year, Unrivaled Brands, Inc. underwent a corporate reorganization to become a subsidiary of Blüm Holdings, Inc. All Unrivaled shares were converted to Blüm shares, with trading starting as “BLMH” on the OTCQB on February 12, 2024. Additionally, Unrivaled executed a 1-for-100 reverse stock split.

Price Action 

Blüm Holdings shares closed Wednesday's market session 15.87% higher at 73 cents per share. 

See Also: California Cannabis Co. Blüm Reports 36% YoY Drop In 2023 Revenue, Narrows Net Loss By 93%

Photo: Courtesy of Branding Pot via Shutterstock

Rubicon Organics Inc. (TSXV:ROMJ) (OTCQX:ROMJF) reported its financial results Wednesday for the first quarter ended March 31, 2024, with revenue of CA$8.9 million ($6.5 million), a 1% increase from CA$8.8 million in the prior year period.

"We anticipated a challenging Q1 due to typical seasonality and the overhang of weak consumer sentiment from 2023," stated CEO Margaret Brodie. "I expect to recover from this temporary dip from our streak of positive Adjusted EBITDA in Q2. In Q1, a changing product mix reduced our gross margin, but this spring we’ve shifted focus to higher-margin products, expecting improved results in Q2 and beyond. Our Q1 working capital investment for product launches is expected to come to fruition delivering further net revenue growth starting in Q2. Additionally, our first-half results are influenced by the ongoing one-time ERP implementation.

"Rubicon Organics holds the #1 premium position in Canada and is poised for growth with the launch of our full spectrum extract vapes line tapping into the highest growth segment in Canada. With a focus on quality, we are confident that our vape launch will not only drive revenue growth but also solidify our position as a leader in the Canadian cannabis market."

More about investments and financial data from the industry you can hear at the 19th Benzinga Cannabis Capital Conference in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry’s future. Secure your tickets now before prices increase by following this link.

Q1 2024 and Subsequent Highlights:

• Gross profit was CA$2.4 million, which compares to CA$3.17 million in the first quarter of last year.
• Adjusted EBITDAwas a loss of CA$423,212 compared to a gain of CA$168,665 in the same period of 2023.
• Cash used by operating activities was CA$900,000 compared to cash provided by operating activities of CA$200,000 in Q1 2023.
• As of March, 31 the company had CA$8.12 million in cash and cash equivalents, compared to CA$9.8 million on Dec. 31.

2024 Outlook

Rubicon Organics anticipates year-over-year growth in net revenue, supported by modest increases in its cost base, excluding the impact of the ERP implementation occurring mostly in the first half, thereby enhancing it operating leverage.

The company projects most of the growth to come from it branded products that are produced using external capacity. It also expects to see price compression across all categories in Canadian cannabis industry, but projects to deliver continued operating positive cash flow in the year ahead and plan to refinance its debt to a longer-term mortgage facility in the second half of 2024.

Price Action

Rubicon Organic shares traded 0.14% higher at 40 cents per share during Thursday's per-market session.

See Also: Cannabis Producer, Rubicon Organics, Reports Seventh Consecutive Quarter Of Positive Cash Flow & EBITDA

Photo: Courtesy of Hvoenok and GOR Photo on Shutterstock

TILT Holdings (CBOE: TILT) (OTCQB:TLLTF), reported financial and operating results for the first quarter that ended March 31, 2024, with revenue of $37.5 million down by 11.3% from $42.3 million in the prior year period. The Arizona-based company said the expected decrease in revenue was mainly due to lower sales volume and price compression in Massachusetts and Pennsylvania, as well as lower Jupiter average price per unit for certain product lines.

"We continue to navigate the company's transition from operational improvement to revenue growth," stated TILT's CEO Tim Conder. "Although the cannabis industry has been facing challenges related to hardware commoditization and pricing pressure in select markets, we are adapting accordingly, and the fundamentals of our business are improving despite those headwinds. Our primary focus is the same as it has always been – deepening our relationships with customers across both our plant-touching and Jupiter hardware businesses.

"There is still work to be done to improve the business; however, we believe TILT is poised for future growth, especially with exciting industry catalysts potentially on the horizon, such as federal rescheduling and the corresponding elimination of Section 280E taxes. We are also acutely focused on strengthening the balance sheet and plan to address our debt throughout the year as we execute on our growth and profitability objectives in 2024."

More about investments and financial data from the industry you can hear at the 19th Benzinga Cannabis Capital Conference in Chicago this October 8-9. Engage with top executives, investors, policymakers, and advocates to explore the industry’s future. Secure your tickets now before prices increase by following this link.

Q1 2024 Financial Summary 

• Gross profit was $6.7 million and gross margin was 17.9%, compared to $8.8 million or 20.8% of revenue in the prior year period. The decrease in gross profit was primarily driven by lower revenue at Jupiter and the cannabis division, while the contraction in gross margin was primarily driven by lower average pricing relative to the prior year period.
• Net loss was $9.7 million, which compares to a net loss of $4.9 million in the prior year period. The difference was primarily due to lower gross profit and an $8.4 million gain on asset sales recognized in Q1 2023.
• Adjusted EBITDA was $38,000 in the three months ended March 31, 2024, versus an Adjusted EBITDA loss of $79,000 in the prior year period. The improvement was primarily driven by efficient operating cost controls.
• Cash used from operations was $2.4 million for the three months ended March 31, 2024, compared to cash provided by operations of $3.8 million in the prior year period. The decrease was primarily related to the timing of inventory purchases.
• On March 31, 2024, the company had $3.5 million of cash, cash equivalents, and restricted cash compared to $3.3 million on December 31, 2023. Notes payable net of discount on March 31, 2024, was $59.7 million compared to $52.2 million on December 31, 2023.

Q1 2024 & Recent Operational Highlights

• Launched Level, a leading West Coast pressed tablet brand, in the Pennsylvania market.
• Crowned NECANN Cup winner for the third year in a row, its Standard Farms brand won first place for best vape cartridge with its Mimosa Liquid Live Rosin "All-in-One" Vape using the Jupiter/CCELL Voca Pro hardware.
• Announced that an experienced retailer and operator will lend capital to Standard Farms PA, to construct and operate dispensaries under Pennsylvania's Senate Bill 773.

Price Action

TILT Holdings shares closed Wednesday's market session 11.93% lower at $0.03 per share. 

Photo: Courtesy of SD_FlowerPower via Shutterstock