Gold Flora Announces Post-Merger Milestone of $30 million in Annualized Cost Savings
First Phase of Post-Merger Integration & Restructuring Completed, Unveiling
~$30 Million in Annualized Cost Savings
Expected October OTCQB® Quotation
COSTA MESA, Calif., Sept. 25, 2023 /CNW/ - Gold Flora Corporation, ("Gold Flora" or the "Company") (NEO: GRAM), a leading vertically-integrated California cannabis company today announced an update on its post-merger restructuring and integration activities. Gold Flora has successfully completed the first phase of its cost-saving initiatives to maximize operating efficiencies and drive the Company to sustainable positive free cash flow.
The Company has diligently and successfully accomplished targeted measures to streamline and integrate legacy operations into Gold Flora's vertically-integrated platform. Integration includes significant reductions in marketing expenses, professional services, personnel expenses, and G&A expenses. In addition, the Company has nearly eliminated its reliance on third-party vendors for biomass, manufacturing, and distribution. Gold Flora has closed several non-profitable delivery locations and has optimized its real-estate footprint by exiting leases or, where attractive, subleasing underutilized space.
The tangible outcomes of these initial changes translate into substantial annualized cost savings of approximately $30 million, surpassing the Company's initial cost-savings target of $20-$25 million. The Company is in the process of integrating its back-office infrastructure and has identified other synergies and cost-saving initiatives, which should yield additional significant savings. Overall, the Company is on plan and ahead of schedule with respect to targeted cost savings.
Laurie Holcomb, Chief Executive Officer of Gold Flora, commented, "This pivotal phase is instrumental in setting the stage for our future success. In just a short period since the merger, we have made significant strides, and I am profoundly proud of our team's efforts in identifying and successfully implementing these vital changes. We have exceeded our initial expectations, with approximately $30 million in annualized cost savings realized to date. We anticipate that these savings will further enhance our margins and drive sustained profitability."
Ms. Holcomb continued, "We have executed our transition activities since the merger with a great deal of precision and intention as we work to position Gold Flora as a leading player in California, the largest cannabis market in the world. Our focus on driving profitability resonates across the entire value chain, encompassing indoor cultivation, manufacturing, distribution, and strategically located retail dispensaries within California. This high degree of control, combined with our robust financial position and unwavering cost management focus, gives us a very promising runway for long-term margin appreciation, profitable growth, and sustainable cash flow."
On September 22, 2023 The Company filed an 8-K that includes pro forma financial results for the six-month period ended June 30, 2023. These pro forma financials reflect the combined operations of Gold Flora LLC, and TPCO Holding Corp. The Company will report its first post-merger financial results when it files for the three and nine month periods ended September 30, 2023. In addition, the Company has been working closely with the OTC, with expectations for its common shares that currently trade under the symbol "GRAM" on the OTC Pink Market to commence trading on the OTCQB® in due course. The Company's shares will continue to be listed on the NEO exchange in Canada under the symbol "GRAM."
For more information on Gold Flora Corporation, visit: www.ir.goldflora.com.
Gold Flora Corporation is a female-led, vertically-integrated cannabis leader that owns and operates a robust portfolio of eight cannabis brands, 15 retail dispensaries, and a number of companies including Stately Distribution throughout California. Its retail operations include Airfield Supply Company, Caliva, Coastal, Calma, King's Crew, Varda, and Higher Level.
Gold Flora Corporation operates an indoor cultivation canopy of approximately 72,000 square feet across three facilities in its Desert Hot Springs campus. The Company can expand further adding approximately 240,000 square feet on already entitled additional acreage. Importantly this opportunity is unique and can be timed to meet market demand. The current 200,000 square-foot campus also houses the company's manufacturing, and extraction facilities, and Stately Distribution. The centralized location provides for optimal security and logistic benefits and protects product as it moves through the Company's overall pipeline.
With hubs throughout the state, the Company distributes many prominent brands, including its own premium lines of Gold Flora, Monogram, Caliva, Mirayo by Santana, Cruisers, Roll Bleezy, Sword & Stoned, Aviation Cannabis, and Jetfuel Cannabis. Third party brands are increasingly contacting the Company in search of reliable input sources and established distribution.
References to information included on, or accessible through, websites and social media platforms do not constitute incorporation herein by reference of the information contained at or available through such websites or social media platforms, and the reader should not consider such information to be part of this press release.
For the latest news, activities, and media coverage, please visit www.goldflora.com.
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to the expectations or forecasts of business, operations, financial performance, prospects, and other plans, intentions, estimates and beliefs, and may include statements regarding Gold Flora's expected financial condition and performance, the current and projected market, and growth opportunities for the company. Words such as "expects," "continue," "will," "anticipates," and "intends," or similar expressions, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward–looking statements are based on Gold Flora's current projections and expectations about future events and financial trends that it believes might affect its financial condition, results of operations, prospects, business strategy and financial needs, and on certain assumptions and analysis made by it in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements to be materially different from future events, results, performance, and achievements expressed or implied by forward looking information and statements herein. Although Gold Flora believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof and, except as required by applicable laws, Gold Flora does not assume any obligation to update or revise any forward-looking information or statements contained herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise.
SOURCE Gold Flora Corporation
Investor Contact: [email protected]
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