Body & Mind (BMMJ)

Graham Farrell Investor Relations
Michael Mills Chief Executive Officer
Trip Hoffman Chief Operating Officer
Tony Bowers Intro-Act
Call transcript
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Good afternoon, ladies and gentlemen, and welcome to the Body and Mind Conference Call. At this time, all lines are in a listen-only mode.

Following the presentation, we will conduct a question-and-answer session. [Operator Instructions] Today's call is being recorded, June 21, 2022. And I would now like to turn the conference over to Mr. Relations. Investor Farrell, Graham sir. ahead, go Please

Graham Farrell

Thank you, and everyone Body and Good fiscal QX afternoon, Mind's welcome XXXX to operator. conference call.

to Body and We call XX, XXXX. third delighted have us April join are today. quarter will ended cover results and operating financial Mind's for the you This

Following remarks, open we the a call to our session. prepared question-and-answer will conference

company's Mind’s Michael Mills, Officer, Our will call Executive Hoffman. be today Trip with led Chief the Chief Officer, by Body and Operating along

like statements. with to the begin formal our some conference I would everyone we of remind Before statements call remarks, that may this on be forward-looking

Forward-looking not in the Please actual differ significantly ahead, financial company’s those the in include, risks in These statements discussed of forward-looking hand expectations the results to projected projections may which to call objectives, I now certain statements may detail Company’s intentions. factors, or but of a necessarily will go limited suggested uncertainties. over plans, any statements Michael. Mills. from matters or variety are are or our filings. SEC other due Michael involve to and

Michael Mills

much, progress very Body [XXXX] made Hello, Thanks forward look Mind time taking the and ending quarter to (ph), and XX, quarter the we we've in last at April on update discussing thanks for an fiscal (ph). the third Graham. the for of [XXXX]

and our Chief Hoffman, Mills, Operating Trip On call CEO myself, have the Mike we Officer.

are issuer On puts growth dip roughly QX, and our discuss a our the for of revenue As we last GAAP a without the $XX $X.XX us rate conservative consolidated later recall for current pleased and report over we run XX% on very call. quarter is slight We'll a revenue allowance licenses assets. U.S. and dollars. projects a of for discussing completed million revenue year recently which We're ramping from ago. increase that in report a quarter to financials, that please do and over U.S. million

steady at remained quarter. assets total for the $XX.X Our million

Our and is valuations. made of valuable after sum up most and operations license cultivation, current limited and exceeds sought asset the manufacturing with our far our base dates assets dispensary assets of

are terms is We total which for liabilities long roughly a roughly the by future long being and QX million million $X.X of are cash include term beginning our and unfavorable million less than These liabilities serviced $X million ended to lease term cash, fiscal cash in $X.X liabilities Our quarter operating year. debt. increased $XX.X the and $X.X the with in flow. million

in $X.X with also QX We ended inventory. million

we cash used activities, $X in Seaside the acquisition. $X.X million month period including During million investing nine from the

just common the and allowed and number We growth outstanding plan of operations. continue over nine to -- us These XX. and had our markets company outstanding and of license have XX, make investments across April investments over in to stock shares continue during last million as across the June We property of strong our shares jurisdictions. as limited XXX equipment diversify the same of months

month. We've pace to shares Our growth. or a and with million grow our a hard ahead converts and at the clean with worked sheet warrants significantly shares diluted preferred the fully a measured auction amount XXX of future to keep of roughly balance company the debt reasonable no both is and facilitate

and of the see million option environment. extended the also license delays flexibility maturity fees significant announced we debt the we amend current term we XXXX. in to to March and $X As our current as elected forward just delays there, And forward additional value think. extend delayed with -- we additional license one I year, to terms Illinois the opportunities Whether look of draw we Illinois interest yesterday, growth to the which and debt, look by to market we long

metrics. operating to Turning

million, $X.X down profit was from profit $X.XX QX which gross of QX gross was million. slightly Our

Michigan gross Our in the QX, through and a forward lean its reduction cannabis EBITDA has infrastructure. of margin The clean Michigan as we dispensary, We up gross We decrease slight our stores $X.XX which -- of was our million startup our loss the with through resulted beginning QX really margin opens slightly gross a Nevada QX had negative adjusted onetime and the California, look XX%, was XX%. wholesale developing is including of in sales performance softer from opportunities our of metrics increasing which expenses newer in add margin to developments for more affected by which for from QX. Illinois. our ramp Ohio, several factors, at and

Memphis. in like I'd and state successful We Trip new new retail Ohio, to Mind initiatives our in operations. brand and in over We Body the brand dispensary received feedback and manufactured wholesale continue Chief excellent as flower as various Officer our Mind and and Operating into Hoffman, our builds turn the well to products to also with moving advances with the and now our brings in customers flower recognized our across West on outline markets into be Arkansas Mind call in to Body Body which Arkansas.

Trip Hoffman

run us to distillate the system that provides also contract Fruit and growth. of are cultivation that edible called favorite Today, X,XXX three fan will the Bites, the updates Thank history Nevada, foot three Bites. recent and continue distillation where we at facility square completed opportunities Bites, new and in updates we own manufacturing operate revenue January operate. of operation. in for we like production distillation In brief XXXX upgraded also provide and each you, that, some distribution join facility May Pretzel our the products Mike. I'd increase operational wholesale to production These the the are a Crispy now The this we added Beginning Bites. an and and expand allow of to XXXX, a the recent tenfold This capacity. a an Chocolate XX,XXX foot to states with square the year

and Body medical products we foot also we as in of Beach a in agreement. the own purchase on branded first and dispensary. a square been December the Beach, Long California, market. branded Seaside. Seaside SKUs first over out to dispensaries and December, product By operate state we rebranded we use pre to locations into for provided Body the shipped of also facility for Diego we and Mind and from states the first in of of dispensary where we the live resin applications Cleveland. dispensaries, six Moving In dispensary selling vapes. this Ohio in and additional took to from Last new And on In and managing the and kitchen edibles year, November, X,XXX ShowGrow Mind the a year in year, the carried facility approval dispensaries. and to we're approval we've state. availability this branded operate half from jurisdictions throughout In the also Also of part of we dispensary. the just the notified the had license Seaside focusing to extraction. production we the state to change first ownership our fall, as San production January other outside of and received May, this many in the Long just BaM shipped received Ohio, and we own City we increased December, XX XX Body Mind limited produce the of And Last license

third the Tennessee. In we from In in on the Memphis, then Mind sell Arkansas other received to biomass research of harvest we facility concentrates commenced rights first first a Last the convert and ownership, harvest the from of our May, completed biomass had dispensary this the This the concentrate for branded schedule providing Arkansas, we BaM to included and to cultivation. April, back across our to In for river became December, XXXX, purchase fall, us. Body for small we in flower from cultivation to and sold February, dispensaries production and first facility. party and ‘XX, where In products November, perpetual prepared the with we recorded Moving BaM sales in dispensary cultivation operate just manufacturing that into the March and contract in other orders of year extracted we we state. have engagements a first dispensaries. medical the the part extracts in secured flower. phenotype and in be and to

July. of of Chicago a year, two we adult of of finally, adult and Illinois, Muskegon can Mind from dispensaries. and the a the a evaluation a last quarter working received construction, End retail and facility cultivation winning locate will BaM this management provisional we retail dispensary in we and the area paused pending in received in in of fully find been In place, branded we Body opened use in And it in when of announced construction February In in for cultivation late the cultivation issuing facility for Greater of adult of the other [indiscernible] Illinois know, operate the in Mind have SUP local we medical our has January to our the ‘XX, region Last convertible with You that provisional of an year, finally, this there. agreements are cities you dispensaries that half March area diligently continue August, recipient these first now as the ‘XX, flower Land Greater market June of the in and of to lottery six owned and own many Michigan, dispensary. month, in and of as receive in in and the paused numbers Xf use the Body In Chicago opportunities. began in use two license work licenses the the And presently construction loan And production have and identifying Manistee. use Chicago dispensaries last Region. Professional government Manistee. facility provisional Regulation adult approvals. to licenses are production production branded staffs further Muskegon we ‘XX, be Department concentrates Financial where dispensary we store

look forward to So to those. Back Mike. we receiving

Michael Mills

much, Trip. Thanks very

we think open questions questions. here can for any there's I if


begin gentlemen, Instructions] Ladies we will the Please Tony go now comes ahead. Bowers. and from session. [Operator first Your question-and-answer question

Tony Bowers

the of that that Mike. obviously, operations, break least, Yes. but spending, quarters a it's line, your think run top and is now money what's to environmental? improving again? lot You're how take get to a it to top and seems for you much few going stall, up to do into take a And at energy building you going of in It out? Hi, out moving what infrastructure line

Michael Mills

Tony. Thanks, Yes.

felt we and seen earlier those I slowdown really last latter year part the during think an certainly year part along nationwide have sales, in impact certainly that of a this cannabis we and the of even systemic in and lines.

about are think ramp are the would start your And the stride your We to relatively sort of ramp dispensary that see facility, any that to starting operations cannabis it's are opening first you're be be some or then slower getting of more. facility. business, if a and the to you tend It few months near regular starting production whether business that a there. of and to Ohio Michigan

So see we do some facilities. those ramp from

looking we to of really we've quarter, looking for state are even forward to next significant of real forward but month next week revenue been the Illinois growth a licenses. company. releasing as that's think we're or drivers Obviously, I these maybe being or -- not those the next

Tony Bowers

mean into to that limited the And better is holding you're been going in license still that put states. a confident you you guys go to environment Does have once position own improves? that careful your very

Michael Mills

that around and into looking a that also I see as few an we Ohio very medical, we've measured we've to really driver positive valid that that Arkansas, mean, company, coming taken to growing lean And for and the fact being go our to and are equity as in XXXX. Arkansas opportunity some Yes, particularly the use to adult think such jurisdictions a a huge state. that I right into, running to we is the initiative optionality and get raises have a company, be speaks picking really done jurisdictions that approach do. interest having

Now are country that like a there's the of consistent where on though in other I is And a you well XX% you thing state up. not their the think applying think legal, doing that for -- fact, even allow cultivation basis when when think that new a is numerous state state jurisdictions over jurisdictions, California jurisdiction. manufacturing -- the does in is or even licenses retail it's opening of we're meaning, of the still cannabis in

of some are those flip to opening those of are new starting and Some jurisdictions.

we So we are opening an And on that keep team. have states ones. those application on We eye writing a up. great new certainly keep an eye the

that think well. been to our of a backbone have but Chicago in we team the the And there's and been luck testament just work together has some real involved licenses as backbone it's our put of business, fact I team, I for wouldn't was successful -- certainly were a say success, success winning the who a ton that hard business fantastic we of application. the and a has been But understanding aspects in the has us. our and incredibly helpful of all been

Tony Bowers

irrational that think sort little you causing this environment right is a to of Do tempered now somewhat being more competition diminish?

Michael Mills

in. -- -- operate to you those. perspective and we're for produce a be really markets We seeing competition dig more need large incredibly look getting when definitely need you we're of equity would a on states I to a challenging. we market I obviously, competition stay yields, think Look, be have we not away necessarily seeing -- states fantastic There's on want bench would worked that We've get see pricing there's consumer. there's start never -- product at that. I producer, experience, some which retail There's think Yeah, to pressure to And you to you the probably and a more on where deeper, to yeah, able from But good strong perspective, have I flower. are and do. these

our about fact, -- talked that creating And we of premium the in to sell in it's are high we we're dispensary benefit coming state it. is, on people to we'd like because seeing really like be end in door a people the to to of able the just been Trip as knocking lot I being Arkansas and sort grow Arkansas, to saying, more other there. product have great they about think many keep dispensaries that product hearing able we've talk well, so our

a operating of Las plus So out that you level give got we can six And certainly an coming understanding do example. years the I'll experience I think new that and in you've if you into Vegas port states that you're in. experience and the of that

And bring and And the is says, judge with And part is We a strive have Ohio our extraction that the a really tries working really our Las it's and large very success. who been it's in that what think Vegas, it comes team is products for. extractor and person out and science. feature art, fantastic this top extracted closely our he's into that's been to I state. shelf part not something we product, of

Tony Bowers

color Can more Manistee you give us in just on the bit facility? a pause the little

Michael Mills

Yes, absolutely.

and A, on it another in it resizing on see it or certainly of Michigan lot price that and some flower biggest strong market. we had building cultivation that started we for on escalation makes have the reprieve items there. plan some to to And Street] time, we industry those in capital a had steel (ph) you construction. concern market tight to you to significant at prices aware more right six your see who's the that look look and not and potentially we obviously Michigan has to -- not abandoned more -- the sort looking makes capital or waiting over capital at cultivation see cultivation start months last look if anybody B, payback point we in makes some just a of and -- sense lead the very market and I think when our to started cost a times have flower. in We We running construction are see the into think a you does I skills IRR what but and started now the -- but and prices, out is, bring facility become in at and sense get of hot -- it's wholly, [Canvas in at every significantly we potentially whether still And specialty market. everyone's more Michigan was your the just compression what, Illinois at it sense

of it's you if tripled. building cultivation, Some just that an arrive, license items times two if a And it's or irrigation very fully you're operational. it specialty waiting months these has it's piece, and until impact. whether serious piece, you're don't electrical your lead month a have get another an whether And piece, one it takes a to it's that another whether takes for controller,

that to has step very our or worked away well. decision I actually pause think So out

Tony Bowers

you. Thank

Michael Mills

Thanks, Tony.


There phone remarks. Michael Mills conference go closing time, this At back I sir. lines. to from are the will the no turn further questions ahead, for Mr. Please

Michael Mills

In taking entire much and Thanks to and entire strains, the to Mind. really everyone. to time to expanding listen really team cannabis company the we're develop conclusion, in forward our Body share like knowledge our and looking operations. the very great next appreciate products quarters. new We innovative I'd today. really thank new across They over our continue at And


and and conference please does to disconnect Ladies would gentlemen, your that like this conclude you this for lines. We thank for you afternoon. participating ask call your