Business
CBD of Denver Announces First Quarter 2022 Financial Results
CBD of Denver Announces First Quarter 2022 Financial Results.
About this update from Cbd Of Denver Inc.
[{"type":"text","content":"Denver, Colorado--(Newsfile Corp. - May 18, 2022) - CBD of Denver, Inc. (OTC Pink: CBDD), a distributor of CBD and cannabis flower and a producer of a full line of CBD oil and unique products sold in Switzerland and throughout Europe, filed its first quarter financial statements on OTCMarkets.com for the period ended March 31, 2022.CBD of Denver generated $908,086 revenue in the first three months of 2022, with a net loss of $314,248 mainly on an inventory write down of $102,856. The business was negatively impacted in the quarter by the reintroduction of COVID controls across Europe and pricing pressure on CBD flower. These trends have already reversed, and the Company's April revenue nearly surpassed the entire first quarter's revenue as prices began to stabilize. The Company completed a restructuring in March to reduce costs, putting itself in a stronger position for the next phase of growth in Europe. \"On the surface, the numbers don't tell the full story and should be viewed in context. While revenues at 3.5% margins don't usually result in overall profitability, my mandate is to transform this business from a commodity trader into a higher-margin, multi-pronged, health and wellness powerhouse in Europe and Asia. With the acquisition of Mellow and further expansion into medical cannabis sales in Germany, we are well on our way toward achieving this goal,\" said CEO Paul Gurney.Highlights of Business Transformation Plan:The Company aims to be the first commercially viable cannabis company in Europe with the mission to build this business according to an:Asset light business model - Leverage strong grower, trading, and retail relationshipsDominate geography - Premier cannabis entity in Switzerland expanding into adjacent countriesFocus on profitability - Cost control and growth marketsAcquisitionsThe roll-up opportunity in the Europe is ripe and management has a pipeline with complementary businesses; management has deep capital market experience as a deal maker to leverage the CBDD hemp platform across EuropeCBDD announced the acquisition of Mellow, a CBD technology and marketplace., in April; Mellow has reach into Europe and Asia and just signed an agreement with a large cannabis LP for distribution into Asia WholesaleOpportunity to right-size the hemp trading revenue model to focus on higher-margin opportunities and cross...