Grown Rogue Reports Audited Fiscal Year 2021 Results

  • 2021 Revenue of $9.4M compared to $4.3M in 2020, an increase of 121%
  • 2021 Gross Profit of $5.2M (56% margin), before fair value adjustments, compared to $1.8M (43% margin) in 2020, an increase of 188% and 1300 basis points
  • 2021 aEBITDA1 of $2.2M (24% margin) compared to $0.3M (6% margin) in 2020, an increase of 797% and 1800 basis points
  • 2021 cash flow from operations, before changes in working capital, of $1.9M compared to ($0.2M) in 2020
  • Q4 2021 contributed $1.2M of aEBITDA1 and $0.9M of cash flow from operations, before changes in working capital, as efficiencies and added production were realized
  • Michigan operations (through Golden Harvests, LLC) report industry leading gross margin of 73% (before fair value adjustments) and segmented aEBITDA1 margin of 58%

Grown Rogue International Inc. (“Grown Rogue” or the “Company”) (CSE: GRIN) (OTC: GRUSF), a multi-state cannabis company with operations and assets in Oregon and Michigan, reports audited results for the fiscal year ended October 31, 2021. All financial information is provided in U.S. dollars unless otherwise indicated.

2021 Highlights

  • Positive aEBITDA for eighth consecutive quarters, including pro-forma results2
  • Increased indoor whole flower production from 400 pounds/month in Q1 2021 to 1250/month in Q4 2021
  • Launched branded 1/8oz flower bags and our patented nitrogen sealed jars in Michigan market
  • Fastest growing brand in Oregon in September and October, according to LeafLink
  • Exited calendar 2021 as a top 10 flower wholesaler in Michigan, according to LeafLink’s MarketScape
  • Exercised option, through Canopy Management, LLC, to acquire 60% controlling interest in Golden Harvest, LLC, allowing consolidation of financial results from Michigan
  • Raised gross proceeds of $6.6M in fiscal 2021 to fund expansion
  • Total assets of $14.2M at year end 2021 compared to $3.8M at year end 2020, an increase of 277%
  • Retired senior secured convertible debentures
  • Subsequent to year end, Grown Rogue raised $1.3M in a non-brokered private placement; including $1.0M from Bengal Capital, a venture capital firm with significant cannabis expertise, and $0.3M from the company CEO

Management Commentary

“Grown Rogue grew substantially in 2021 driven by continued expansion in Michigan and Oregon. We started 2021 producing approximately 200 pounds of indoor whole flower/month and ended the year producing more than 1250 pounds/month. Our focus on building the premier craft flower company at scale is being realized in all aspects of our business particularly quality, yield, and costs per pound.” said Obie Strickler, CEO of Grown Rogue. “Despite 2021 being a difficult year for our peers, we grew aEBITDA ~800% year over year and achieved some of the highest margins in the industry, as a wholesaler in two very competitive markets. The company continues to gain market share in both Oregon and Michigan as our customers and retail partners value our quality, consistency, and service. Our recent soft launch of nitrogen sealed pre-rolls in Michigan has been well received and we are excited to push into additional product categories in 2022.”

Highlights by State

Oregon Operations

  • 2021 Revenue of $5.2M compared to $3.8M in 2020, an increase of 34%
  • 2021 Gross profit, before fair value adjustments, of $2.2M (43% margin) compared to $1.7M (44% margin) in 2020, an increase of 31%
  • Segmented aEBITDA of $1.7M (33% margin) compared to $0.3M (6% margin) in 2020, an increase of 576%
  • Average selling price of indoor whole flower in 2021 of $1005/pound compared to $1201/pound in 2020, a decrease of 16%
  • Segmented aEBITDA margin expanded 2700 basis points despite a double-digit percent decline in average selling prices
  • 2021 Outdoor harvest of 5,500 pounds of whole flower compared to 2,300 pounds in 2020, an increase of 139%
  • Increased indoor production run rate from 200 pounds/month in Q1 2021 to 700 pounds/month in Q4 2021

Michigan Operations (through Golden Harvest, LLC)

  • 2021 Revenue of $3.9M and pro-forma revenue2 of $6.4M, compared to $2.5M in 2020, an increase of 158%
  • 2021 Gross profit of $2.8M, gross margin of 73%, before fair value adjustments
  • Segmented aEBITDA of $2.2M, aEBITDA margin of 58%
  • Average selling price of indoor whole flower of $1887/pound
  • Increased indoor production run rate from 200 pounds/month in Q1 2021 to 550 pounds/month in Q4 2021
  • Improved wholesale position in bulk flower sales from 20th in Q2 2021 to 10th in Q4 2021, according to LeafLink’s MarketScape 

Selected Financial Information (Complete financial tables have been filed on

STATEMENTS OF FINANCIAL POSITION October 31, 2021 October 31, 2020
Current assets
Cash$1,114,033 $217,788 
Accounts receivable739,248 172,121 
Biological assets1,188,552 250,690 
Inventory3,306,312 1,124,360 
Prepaid expenses and other assets357,541 69,816 
Total current assets$6,705,686 $1,834,775 
Marketable securities610,092 585,035 
Other investments750,000 187,812 
Property and equipment5,742,584 1,151,799 
Intangible assets and goodwill399,338 4,997 
TOTAL ASSETS$14,207,700 $3,764,418 
Current liabilities 
Accounts payable and accrued liabilities$1,766,707 $1,059,971 
Current portion of lease liabilities624,935 100,277 
Current portion of long-term debt843,900 46,099 
Business acquisition consideration payable 358,537   
Interest payable13,750 9,367 
Derivative liabilities 583,390 
Income tax 254,631   
Total current liabilities$3,862,460 $1,799,104 
Accrued liabilities123,413 389,816 
Lease liabilities1,735,503 16,630 
Long-term debt1,365,761 753,715 
Convertible debentures 1,739,678 
Deferred rent 10,494 
TOTAL LIABILITIES$7,087,137 $4,709,437 
Share capital$20,499,031 $14,424,341 
Shares issuable74,338  
Contributed surplus6,407,935 4,070,264 
Accumulated other comprehensive income (loss)(90,378)(12,197)
Accumulated deficit(21,804,349)(19,394,044)
Equity attributable to shareholders$5,086,577 $(911,636)
Non-controlling interest2,033,986 (33,383)
TOTAL EQUITY$7,120,563 $(945,019)
TOTAL LIABILITIES AND EQUITY$14,207,700 $3,764,418 
 Years ended October 31,
Product sales9,034,618 3,846,223 
Service revenue344,055 393,381 
Total revenue9,378,673 4,239,604 
Cost of goods sold
Cost of finished cannabis inventory sold(3,997,617)(2,155,507)
Cost of service revenues(154,353)(271,167)
Gross profit, excluding fair value items5,226,703 1,812,930 
Realized fair value amounts in inventory sold(950,461)(1,482,725)
Unrealized fair value gain loss on growth of 
biological assets
1,824,226 1,515,492 
Gross profit6,100,468 1,845,697 
Accretion expense949,811 609,357 
Amortization of intangible assets4,997 26,600 
Amortization of property & equipment180,015 250,836 
General and administrative3,983,250 2,196,421 
Share-based compensation280,819 337,162 
Total expenses5,398,892 3,420,376 
Gain (loss) from operations701,576 (1,574,679)
Other income and (expense)
Interest expense(197,632)(249,296)
Other income (expense)(17,072)14,750 
Gain on disposal of subsidiary 1,574 
Loss on debt restructure (765,707)
Gain on derecognition of derivative liability 244,572 
Gain on debt settlement141,180 23,939 
Loss on settlement of non-controlling interest(189,816) 
Unrealized loss on marketable securities(35,902)(263,483)
Unrealized gain (loss) on derivative liability(1,258,996)221,820 
Loss on disposal of property and equipment(7,542)(9,978)
Loss from operations before taxes(864,204)(2,356,488)
Income tax(150,543) 
Net Loss(1,014,747)(2,356,488)
Other comprehensive income (items that may 
be subsequently reclassified to profit & loss)
Currency translation(78,181)(134,117)
Total comprehensive loss(1,092,928)(2,490,605)
Loss per share attributable to shareholders – basic & diluted(0.02)(0.03)
Weighted average shares outstanding – basic & diluted135,231,802 90,596,827 
Net loss for the period attributable to:  
Non-controlling interest1,395,558 (75,049)
Net loss(1,014,747)(2,356,488)
Comprehensive loss for the period attributable to:
Non-controlling interest1,395,558 (75,049)
Total comprehensive loss(1,092,928)(2,490,605)
Year ended October 31, 2021
Oregon ($)Michigan ($)Corporate ($)Consolidated ($)
Sales revenues5,152,286 3,882,332  9,034,618 
Service revenues  344,055 344,055 
Costs of goods sold, excluding fair value adjustments(2,934,990)(1,062,627) (3,997,617)
Costs of services revenues  (154,353)(154,353)
Gross profit (loss) before fair value adjustments2,217,296 2,819,705 189,702 5,226,703 
Net fair value adjustments108,008 765,757  873,765 
Gross profit2,325,304 3,585,462 189,702 6,100,468 
General and administration1,148,216 680,924 2,154,110 3,983,250 
Depreciation and amortization87,850 19,316 77,846 185,012 
Share based compensation85,662  195,157 280,819 
Other (income) and expense:    
Gain on sale of assets7,573 (31) 7,542 
Interest and accretion204,869 107,200 835,374 1,147,443 
Unrealized loss (gain) on marketable securities  35,902 35,902 
Gain on debt settlement(124,556) (16,624)(141,180)
Other income and expense16,953 119  17,072 
Unrealized loss on derivative liability  1,258,996 1,258,996 
Loss on non-controlling interest buyout  189,816 189,816 
Net income (loss) before tax898,737 2,777,934 (4,540,875)(864,204)
Tax8,648 141,895  150,543 
Net income (loss) after tax890,089 2,636,039 (4,540,875)(1,014,747)

About Grown Rogue

Grown Rogue International (CSE: GRIN | OTC: GRUSF) is a vertically integrated, multi-state Cannabis family of brands on a mission to inspire consumers to “enhance experiences” through cannabis. We have combined an expert management team, award winning grow team, state of the art indoor and outdoor manufacturing facilities, and consumer insight-based product categorization, to create innovative products thoughtfully curated from “seed to experience.” The Grown Rogue family of products include sungrown and indoor premium flower, along with nitro sealed indoor and sungrown pre-rolls and jars.


  1. The Company’s “aEBITDA” is a non-IFRS measure used by management that does not have any prescribed meaning by IFRS and that may not be comparable to similar measures presented by other companies. The Company defines aEBITDA as the Company’s net income (loss) for a period, as reported, before interest, taxes, depreciation and amortization, and is further adjusted to remove transaction costs, stock-based compensation expense, accretion expense, gain (loss) on derecognition of derivative liabilities and the effects of fair-value accounting for biological assets and inventory. The Company believes that this is a useful metric to evaluate its operating performance. 
  2. The Company has provided unaudited pro-forma revenue information, which assumes that closed and pending mergers and acquisitions in 2021 are included in the Company’s financial results as of the beginning of the quarterly and annual periods in 2020 and 2021 for the Company and target companies.


Cash production costs of Grown Rogue products, EBITDA and aEBITDA are non-IFRS measures and do not have standardized definitions under IFRS. The Company has also provided unaudited pro-forma financial information, which assumes that closed and pending mergers and acquisitions in 2021 are included in the Company’s financial results as of the beginning of the quarterly and annual periods in 2020 and 2021. The Company has provided the non-IFRS financial measures, which are not calculated or presented in accordance with IFRS, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. These supplemental non-IFRS financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-IFRS financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-IFRS financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the IFRS financial measures presented herein. Accordingly, the following information provides reconciliations of the supplemental non-IFRS financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with IFRS.

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