- True Harvest Expands Greenrose’s Footprint into
- Greenrose Provides Revised 2022 Outlook for True Harvest and Theraplant -
Under the terms of the acquisition,
“Completing our asset purchase of True Harvest expands Greenrose’s footprint into the Southwest and demonstrates the continued execution of our growth strategy,” said
Advisors
About
Forward-Looking Statements
Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Greenrose’s or its target companies’ control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include:
- liquidity of Greenrose’s stock; costs related to the proposed business combinations;
- Greenrose’s ability to manage growth; Greenrose’s ability to identify and integrate other future acquisitions;
- rising costs adversely affecting Greenrose’s profitability;
- competition in the legal cannabis industry;
- adverse changes to the legal environment for the cannabis industry; and general economic and market conditions impacting demand for Greenrose’s products and services;
- failure to realize the anticipated benefits of recently completed and future acquisitions, including delays in consummating any future acquisitions or difficulty in, or costs associated with, integrating the businesses of
Greenrose , Theraplant and True Harvest; - prevailing prices for cannabis products in the markets in which
Greenrose operates; - new regulations or pending changes (and the timing of any such changes) in the current regulations in the states of
Connecticut andArizona where the businesses of Theraplant and True Harvest operate, respectively; - the effects of competition on Greenrose’s business; and
- those factors discussed in Greenrose’s Proxy Statement on Schedule 14A filed
October 5, 2021 under the heading “Risk Factors,” and other documents ofGreenrose filed, or to be filed, with theSEC .
If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither
In addition, forward-looking statements reflect Greenrose’s expectations, plans or forecasts of future events and views as of the date hereof.
Investor Relations Contact:
Gateway Investor Relations
(949) 574-3860
GNRS@gatewayir.com
Greenrose Contact:
Executive Vice President, Business Development
(516) 307-0383
ir@greenroseholdings.com
2022 | |||||||
(Amounts in thousands of | |||||||
Revenues, net of discounts(1) | $ | 120,000 | $ | 140,000 | |||
Net income (loss): | $ | 8,371 | $ | 14,661 | |||
Provision For Income Taxes(2) | 22,260 | 25,970 | |||||
Interest expense(3) | 27,823 | 27,823 | |||||
Depreciation and Amortization(4) | 16,546 | 16,546 | |||||
EBITDA(5) | $ | 75,000 | $ | 85,000 | |||
(1) Revenue estimates assume that | |||||||
(2) Prior to acquisition, our targets were LLCs, and as such, we have utilized an estimated 26.5% on the Revenues less Cost of Goods Sold (excluding depreciation), and estimated that rate to be approximately 70%. | |||||||
(3) Interest expense calculated using the effective interest method, as done in the article 11 pro formas. | |||||||
(4) Depreciation and amortization expense is based upon a preliminary fair value valuation, with its related depreciation and is used in our Article 11 proformas, which may change upon the completion of purchase accounting under ASC 805. | |||||||
(5) This excludes any transaction related expenses. | |||||||
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