GL Brands (Formerly Freedom Leaf) Announces Fiscal First Quarter 2020 Financial Results
February 03 2020 - 9:30AM
InvestorsHub NewsWire
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 -- InvestorsHub
NewsWire -- 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.
Financing
Activities
- Closed a $5 million convertible note financing
led by an affiliate of Merida Capital to support the Company’s
production, marketing, and sales efforts as it continues to build
its market position.
Corporate Rebrand to GL
Brands
-
Completed the rebrand of the Company from
Freedom Leaf to GL Brands. The Company has now transitioned into
the global hemp and CPG consumer packaged goods market, building
upon its rapidly growing hemp product portfolio. GL Brands is
focused on expanding its hemp brand platform beyond its initial
product offerings to include hemp pre-rolls and CBD sparking
beverages to reach a wider retail network in key growth markets
around the world. The Company’s new corporate website can be found
at www.GLBrands.com and
is trading under the symbol
FRLF.
About
GL Brands Inc.
GL
Brands is a global hemp consumer packaged goods company that
creates authentic, enduring and culturally relevant brands engaged
in the development and sale of cannabis-derived wellness products.
Through its premier brands Green Lotus™ and Irie CBD, GL Brands
delivers a full portfolio of hemp-derived CBD products, including
tinctures, soft gels, gummies, sparkling beverages, vapes, flower
and topical segments to promote greater wellness and balance, in
the U.S. and throughout the world. For more information, please
visit https://www.glbrands.com.
Safe
Harbor Statement
This
press release contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
that are intended to be covered by the "safe harbor" created by
those sections. Statements in this press release that are not
strictly historical are “forward-looking” statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally can be identified by
phrases such as “believes,” “expects,” “anticipates,” “foresees,”
“forecasts,” “estimates” or other words or phrases of similar
import. Similarly, statements herein that describe GL Brand’s
business strategy, outlook, objectives, plans, intentions or goals
also are forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those in
forward-looking statements. Factors that could cause or contribute
to differences include the uncertainty regarding viability and
market acceptance of GL Brand’s products and services, changes in
relationships with third parties, and other factors described in GL
Brand’s most recent periodic filings with the Securities and
Exchange Commission.
These
risks and uncertainties include, without limitation, changes in
general industry or regional market conditions; changes in consumer
and customer preferences for our products; loss of business from
increased competition; changes in strategic relationships;
unfavorable fluctuations in currencies or interest rates in the
regions in which we operate; changes in regulatory conditions;
changes in tax laws; import and export duty and tariff rates in or
with the countries with which we conduct business; and negative
impact of any governmental investigations and associated
litigations.
The
occurrence of any of these risks and uncertainties could have a
material adverse effect on the Company’s business, financial
condition and results of operations. The Company is not obligated
to revise or update any forward-looking statements to reflect
events or circumstances that may arise after the date of this
release.
Investor
Contacts:
Phil Carlson / Erika Kay
Phone: (212) 896-1233
Email: pcarlson@kcsa.com / ekay@kcsa.com
Media
Contacts:
Anthony Feldman / Nick
Opich
KCSA
Strategic Communications
(347)
487-6194 / (212) 896-1206
afeldman@kcsa.com / nopich@kcsa.com