Benzinga | Aug 24, 2021 11:06AM EDT

Gage Growth Misses On Q2 2021 Revenue, Reports Net Loss Of $9.4M

Michigan-based cannabis premium brand and operator Gage Growth Corp. (CSE:GAGE) (OTC:GAEGF) reported its financial results Tuesday for the three months ended June 30.

"In the second quarter of 2021, Gage had a strong performance across all financial and operating metrics," Fabian Monaco, CEO of Gage, said. "We continue to grow rapidly while substantially improving our margins as evidenced by our quarter over quarter gross margin improvement since the fourth quarter of 2020."

Q2 2021 Financial Highlights

* Revenue totaled $26.4 million compared to $17.6 million in the first quarter of 2021, representing a 49.9% quarter-over-quarter increase and 130.2% year-over-year, and missing estimates by $2.03 million.

* Gross profit totaled $9 million as compared to $4.6 million in the previous quarter.

* The gross margin, before the impact of biological asset adjustments, was 34.2% versus 26.1% in the prior period.

* Adjusted EBITDA was a $1.9 million loss versus a loss of $3.8 million in the first quarter.

* Net loss amounted to $9.4 million, representing a sequential improvement from $10.8 million.

* As of June 30, the company had $32.8 million in cash.

* July's average selling price was roughly $5,100/lb versus Michigan's average of $3,500/lb.

Based in Detroit, the company currently operates ten dispensaries, three cultivation facilities with six operational contracts grow cultivation assets, Monaco added. In addition, the company launched new multiple licensing partnerships with premium West Coast brands, including Pure Beauty and Wiz Khalifa's Khalifa Kush.

"Overall, we continue to execute on our growth strategy in 2021. We are excited to build on our momentum and are already seeing great performance evidenced by continued expansion of our retail footprint and brand partnership," Monaco said.

More news from Gage Growth:

Gage Growth Launches Berner's 'Cookies' Cannabis Brand In Canada

Curaleaf, Ayr Wellness, Gage Cannabis And Three Others Added To Green Market Report Cannabis Company Index After 'Rough Second Quarter' For Weed Stocks

Photo: Courtesy of Markus Winkler on Unsplash