Adam Jackson
California-based Unrivaled Brands Inc. (OTCQB: UNRV) reported preliminary financial results for the first quarter 2023, showing revenue of $8.7 million and a gross margin of 48%.
The company’s revenue for the quarter remained consistent with the prior quarter, with the bulk of the revenue coming from Unrivaled’s three retail stores and cultivation facility.
However, the gross margin for the quarter rose from 44% in the prior quarter to 48%, indicating improved profitability.
In a statement on Tuesday, Unrivaled’s CEO Sabas Carrillo acknowledged the challenges faced by the California legal cannabis market and expressed gratitude to the company’s vendors, creditors, and noteholders who supported the company during its restructuring efforts.
“I am proud of our team who managed to outpace the California legal cannabis market while also strengthening our company-wide culture and continuing to work through a difficult major reorganization,” Carrillo
During the quarter, Unrivaled settled outstanding litigation with People’s California LLC and resolved around $3.3 million of indebtedness to certain noteholders. The company also reopened its Blüm San Leandro store, which contributed to revenue growth.
While the company has made significant progress, management said it is aware of the risks associated with remaining litigation, unsettled debts, and unfavorable market conditions that could affect its progress.
