John Schroyer
Body and Mind Inc. (CSE: BAMM) (OTCQB: BMMJ) posted a $20.6 million loss for its 2023 fiscal year, which ended July 31, the company announced in its latest quarterly financials. That bottom line is an improvement from 2022, when Body and Mind posted a $28.2 million loss.
Annual revenue for the company also took a dip, to $22.8 million from $23.4 million the year prior, which was at least partially chalked up to Body and Mind’s ongoing expansion efforts in Illinois and New Jersey, along with a decrease in wholesale cannabis prices in Nevada.
“This year has been focused on streamlining our assets and operations in support of developing what we believe to be our highest-returning capital projects in the Illinois and New Jersey markets,” CEO Michael Mills said in a press release.
Mills said that Body and Mind’s sale of its Ohio dispensary in July to FarmaceuticalRx LLC for $8.2 million resulted in:
- Full repayment of the company’s senior secured lender
- A reduction of roughly $1 million in annual interest expenses
“Our divestment of the Ohio processing operation is anticipated to provide an additional $2 million in incremental capital prior to the end of November 2023, which we plan to use to fund our dispensaries under development,” Mills said, referring to stores Body and Mind is building out in Illinois and New Jersey.
Still, Body and Mind’s operating loss for the 2023 fiscal year grew to $7.7 million from $4.5 million the year prior, and the company had to take a one-time impairment charge of $9.4 million.
Highlights from the 2023 fiscal year include its entries into both Illinois – where its first dispensary opened in April this year, with a second under construction – and New Jersey, where it acquired a permit but has yet to open for business.
During the quarter, Body and Mind also:
- Closed on the acquisition of a California dispensary in the central coast town of Seaside for $1.25 million plus an equal amount worth of BAMM stock
- Raised $3 million in debt financing with Bengal Capital and Mindset Capital
- Closed on a New Jersey merger with retailer CraftedPlants NJ in New Jersey
- Exited the Michigan market with the sale of its dispensary in Muskegon
The company intends to continue looking for expansion opportunities, Mills said in a statement, “as markets open” and depending on “efficient capital allocation.”
At the close of July, Body and Mind had total assets of $21.2 million, including current assets of $9.3 million, against $30.5 million in total liabilities.
