Financial Highlights (all amounts expressed in Canadian dollars unless otherwise noted)
- Total revenues for the year ended
December 31, 2022 was$673,416 , as compared to the$928,208 reported for the same period of the prior year, which reflects the current challenged state of the Canadian cannabis industry and was primarily due to the sale of cannabis at declining prices by the Boundary Bay Cannabis joint venture entity. - Gross profit for the year ended
December 31, 2022 was$303,967 , from the$405,223 reported for the same period of the prior year, which represented a similar gross profit margin of 45% and 44% respectively, primarily due to the Company and its related entities being able to manage inventories proportionate to expected sales. - Total expenses for the year ended
December 31, 2022 was$5,671,770 , a significant decrease from the$18,440,744 reported for the same period of the prior year, which was primarily due to a decrease in transaction costs, finance and other costs, production costs and consulting and management expenses. - Comprehensive loss for the year ended
December 31, 2022 was$41,969,746 , as compared to a comprehensive loss of$2,354,780 reported for the same period of the prior year, which was primarily due to the impairment of investments by$15,612,428 , the recording of a provision on a loan receivable of$18,088,318 as well as the impairment of intangible assets and write-off of certain accounts receivable. - Total assets for the year ended
December 31, 2022 was$1,094,736 , from the$46,216,990 reported for the same period of the prior year.
Management Commentary
“The 2022 fiscal year can best be characterized as an opportunity to significantly improve the Company’s cost structure against the backdrop of a highly competitive recreational cannabis price environment. AGRA’s current situation is not unique on the high-cost and regulatorily burdensome landscape that is the Canadian cannabis industry. However, management continues to work toward positioning the Company for future optionality by exiting unprofitable ventures and monetizing assets of declining value. I would like to thank our stakeholders for their continued support and guidance on this path,” said
Summary of Key Financial Measures
A summary of selected annual financial information for the last two fiscal years as follows, as expressed in Canadian dollars:
As at ($) | As at ($) | |||
Total revenues | 673,416 | 928,208 | ||
Total expenses | 5,671,770 | 18,440,744 | ||
Comprehensive loss | 41,969,746 | 2,354,780 | ||
Net loss per share | (0.79 | ) | (0.20 | ) |
Total assets | 1,094,736 | 46,216,990 | ||
Outlook
The Company primarily operates within the challenged economic landscape that currently is the Canadian recreational cannabis industry. Its near-term outlook includes focusing on the collection of receivables to increase the stability of its current cash position.
Additionally, the Company is positioned to earn approximately 43% of up to two additional share-based earnout milestone payments relating to the sale of its
The Company remains open to business opportunities including but not limited to acquisitions, divestitures, joint ventures, partnerships and other such transactions or commercial arrangements. However, the Company intends to exit the unprofitable Boundary Bay Cannabis joint venture by selling its interest in 2023.
About
For more information about
ON BEHALF OF THE BOARD OF DIRECTORS
E: ir@agraventures.com
T: (800) 783-6056
The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
Forward-looking Information Cautionary Statement
Except for statements of historic fact this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan” “expect” “project” “intend” “believe” “anticipate” “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including but not limited to delays or uncertainties with regulatory approvals including that of the CSE. There are uncertainties inherent in forward-looking information including factors beyond the Company’s control. There are no assurances that the business plans for
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