Grown Rogue climbs out of the red to hone in on Jersey, Illinois

Oregon-based Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) posted its financial results for the two months ending Dec. 31, 2023, and the fiscal year that ended Oct. 31, showing positive net income and a 30% year-over-year revenue growth in its core markets.

The company changed its fiscal year-end from Oct. 31 to Dec. 31 to align its reporting cycle with the calendar year starting in 2024.

For the fiscal year ending Oct. 31, 2023, Grown Rogue generated revenues of $23.4 million and a net loss of $700,000. However, the company rebounded in the following two months ending Dec. 31, posting a net income of $700,000 on revenues of $3.6 million.

Grown Rogue operates four facilities in Oregon and holds a 60% stake in a Michigan cultivation facility. The company has consistently ranked among the top wholesale flower producers in both markets, according to 2022-2023 wholesale data.

“We are excited to complete the transition of our fiscal year to now align with the calendar year,” CEO Obie Strickler said in a statement. “It was great to see that during November and December, typically the two slowest months for the company, we saw 30% year-over-year revenue growth in our core markets of Oregon and Michigan.”

Strickler and crew are also teeing up expansion into the New Jersey and Illinois adult-use cannabis markets. Management said it is making progress on the construction of its cultivation facility in New Jersey, and is awaiting regulatory approvals to commence operations in the state.

“We set aggressive timelines for the cultivation facility and would like to thank our team for their effort and commitment to achieving these timelines,” Strickler said in a statement.

The company also recently raised $4.7 million through warrant exercises, padding extra cash to fund its growth initiatives.

“The recent warrant exercises…have positioned us well to finance our current growth initiatives with cash on the balance sheet while leaving us with enough liquidity to move quickly if an attractive opportunity presents itself,” said Strickler.

With $6.8 million in cash as of Dec. 31, and a recent $8 million convertible debenture raise, the company believes it’s equipped to fund its growth initiatives.