Yield Growth (BOSS.C): Forget the story – now we’ve got numbers

10/29/2019

The story has always been good.

“Cannabis will require an entirely new way of branding,” stated Yield Growth (BOSS.C) Penny Green in a 2018 Georgia Straight interview. “Cannabis lifestyle brands could be disruptive to several sectors, including the wellness industry, makeup, and leisure.”

Green and her team set out to create cannabis-based products for lucrative market niches that other cannabis companies are not focussing on.

The Yield Growth Corporation is a potential acquisition target for larger companies,” stated MarijuanaStox, “including Estee Lauder, and Procter & Gamble.”

On January 18, 2019 – about three weeks after the IPO, Chris Parry sat down for a podcast interview with Ms. Green to dig deeper into her ambition for the company.

“We decide to explore the potential in topicals,” explained Green in the Equity Guru podcast, “We acquired a catalogue of formulas based on Ayurvedic principals, which is an ancient Indian medicine” that uses cannabis as an essential ingredient.

“We purchased the 80 formulas without the cannabis,” added Green, “so it was a legal acquisition.  Then we spent the last year and half commercializing these products and bringing them to market.”

For the rest of 2019, Green and her team have been getting shit done.

We’ve covered some of it:

BOSS hits 400 Oregon stores
BOSS passes Health Canada testing
BOSS launches 3 hemp-based skin products
BOSS CEO Penny Green explains biz model to Chris Parry
BOSS blends CBD and THC
BOSS tackles the hangover
BOSS launches 10 skin care products
BOSS develops hemp root oil products
BOSS launches scented oils
BOSS expands further into China
BOSS hemp story gets bigger
BOSS featured in Vogue Magazine
BOSS expands CBD formulas in Europe
BOSS doubles down on Shrooms

The reality is, BOSS puts out more news than we can cover.

Yield Growth Enters the $130 billion Gifting Market” – probably isn’t going to move the stock – so we gave that one a pass.

On October 29, 2019 Yield Growth (BOSS.C) released financial and operational results for Q3, 2019 ended August 31, 2019.

Shut the story book.

Now we’ve got numbers.

Guess what?

They are pretty fricken good.

Q3, 2019 Financial Highlights:

  • Revenue increased by 61% to $1.9 million
  • Compared to $1.2 million in Q2 2019
  • Revenue increased by 355% compared to $400,000 a year earlier.

  • Net losses decreased by 55% to $1.9 million
  • Compared to $4.1 million in Q2 2019
  • Net losses decreased by 50% compared from a year earlier

If a quarterly loss of $1.9 million seems heavy, check out Canopy Growth’s (CGC.NYSE) Q4, 2019  net loss of $323 million Canadian dollars. That’s $41 loss per second.  $2,500 per minute. $150,000 per hour. $3.6 million dollars a day.

Admittedly, comparing CGC’s losses to BOSS’s – is like checking out your paunch while posing next to an 1,102 lb. woman from Mumbai.  In comparison, your little mid-section curvature is going to look like a trivial health issue.

Growing revenues in a frontier industry will create red ink.

In Q3, 2019 BOSS’s total assets increased by 149% to $6.5 million from $2.6 million a year earlier.

Net assets increased by 250% to $4.7 million from $1.3 million a year earlier.

Working capital increased by 91% to $3.4 million from $1.8 million a year earlier.

In the October 29, 2019 press release, BOSS also announced that it has “no commercial debt, no short-term loans, no long-term loans and no convertible debentures.”

2019 Strategic Achievements:

  • Attained Oregon Liquor Control Commission final approval for 9 Wright & Well products, giving access to U.S. markets
  • Obtained Compliance Certificates for various Urban Juve products in the EU, giving access to the European market
  • Signed multiple license and distribution agreements for territories including Greece, Cyprus, Brazil and Colombia
  • Media coverage in British Vogue, Vanity Fair UK, and Elle Canada
  • Products available on Shopper

Through its subsidiaries, Yield Growth has over 200 proprietary beauty, wellness, edibles and beverage formulas for commercialization.

It has filed 12 patents to protect its extraction method and formulas. Yield Growth is in revenue through multiple streams including licensing, services and product sales.

BOSS IPO’d on December 14, 2018 at .28, surged to .82 by Feb 25, 2019, then slid to its current price of .28 – with a current market cap of $25 million.

BOSS is no longer just a good story.

It’s cannabis consumer product company with surging revenues and shrinking losses.

Full Disclosure: Yield Growth is an Equity Guru marketing client.

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