Mankind Dispensary Acquisition yields substantial returns
SAN DIEGO, CA / ACCESSWIRE / August 31, 2021 / GABY Inc. (“GABY” or the “Company“) (CSE:GABY)(OTC PINK:GABLF), a California consolidator of cannabis dispensaries and the parent company of San Diego’s Mankind Dispensary (“Mankind Dispensary“), is pleased to announce record second quarter revenue of $11.3 million and record gross profit of $3.9 million compared to $0.7 million and $0.0 million, respectively, the same quarter last year.
Gross margin for the period was a record high of 35.0% and compares to 2.9% the same quarter last year. Adjusted EBITDA(1) improved to $0.9 million from negative $1.6 million the same quarter last year. The improvements were primarily attributable to the higher volumes and margins generated from the acquisition of Mankind Dispensary on April 1, 2021.
For the second quarter of 2021 the net loss was $1.6 million compared to a net loss of $1.7 million with the increase in Adjusted EBITDA being mostly being offset by an increase in income tax expense on taxable operations and higher interest expense on the notes issued in respect of the Mankind transaction.
While significantly improved over Q2-2020 and over last quarter, Adjusted EBITDA numbers were negatively impacted mostly from operating two distribution entities,