Next Green Wave Holdings Inc. (CSE: NGW) (OTCQX: NXGWF) (“Next Green Wave”, “NGW” or the “Company”), a premium seed-to-shelf craft cannabis producer, is pleased to announce the following operational and financial updates:
Construction Update
The Company has been awarded its building permit by the City of Coalinga. In addition, NGW is pleased to announce it has completed the Civil Work (previously announced HERE).
The construction timeline for its 62,000 premium indoor cultivation facility (“Facility B”) is currently as follows:
- Civil Work completed in August 2021
- Building permit obtained in August 2021
- Certificate of Occupancy obtained in Q4 2022
While construction at Facility B (the “Project”) has progressed well, the Project is currently facing a three to six month delay due to disruptions in the supply chain, mainly regarding steel, which has negatively impacted availability and pricing of essential construction materials.
Shareholder Call
The Company is also pleased to announce the details of its quarterly shareholder call scheduled to take place on Thursday Sep 2, 2021 at 3:30PM PST. Pre-registration is mandatory and can be completed by clicking HERE. After registration, you will receive a confirmation email containing information on how to join the call.
AGM Announcement
The Company’s 2021 annual general meeting (AGM) will take place on November 5, 2021 at 2:30PM PST.
The Company expects to publish its information circular to shareholders in October 2021 and intends to file its definitive proxy statement, which includes the meeting proposals for its 2021 AGM, on SEDAR in October 2021.
Financial Updates
The Company has released its financial statements for the three and six-month periods ended June 30, 2021, which can now be found on SEDAR.
In the below table, the Company has provided a forecast of Q3 2021 (“the Forecast”) of its expected Revenue and Adjusted EBITDA*. In addition, the Company is pleased to announce a new type of revenue (“Distro Revenue”), which involves buying and selling third party flower. As the margins on Distribution Revenue are lower than Facility Revenue, the Company has chosen to provide separately, revenue and cost of sales relating to both activities.
The three tables below break out the following by quarter:
- Total (Facility + Distro) Revenue, Costs and Adjusted EBITDA*
- Facility Revenue, Costs and Adjusted EBITDA*
- Distro Revenue, Costs and Adjusted EBITDA*
Q2 2021 revenues decreased mainly due to the following non-recurring items:
- significant shifts in the market for derivatives, at both the retail and wholesale level, the Company adjusted it’s branded product mix deemphasizing edibles, pre rolls and dabbables which resulted in lower overall sales for the quarter.
- a hardware update for the NGW branded sauce carts, cart sales lagged in Q2 2021 resulting in lower overall sales for the quarter. With R&D successfully completed, the Company anticipates relaunching NGW’s 2.0 sauce cart in September and expects to see growing sales month over month until meeting internal production capacity in early 2022.
“Due to the necessary adjustments made to our branded product menu, we have seen a strong rebound to both the top and bottom line in Q3 2021. By increasing per plant yields, reducing turnaround time between cycles, improving operational efficiencies and continually adding better performing genetics through our pheno hunts we have made up significant ground replacing any lost derivative revenue in less than one fiscal quarter.
“As such, we are very excited about the testing results coming out of our Facility right now, and when combined with the increasing quarter over quarter yield, I am very excited about the revenue and brand growth potential this brings to Next Green Wave in the short and long term. We currently have six unique strains testing consistently above 30% THC and we anticipate our entire menu consisting of strains above 30% THC in early 2022.
“Additionally, we are actively pursuing the acquisition of retail locations in key markets throughout the state to fulfill NGW’s mission of becoming a top 5 integrated premium producer, brand and retailer in the California market. This is just the beginning!”
Michael Jennings
Chief Executive Officer, Director
Next Green Wave Holdings Inc.
