Redwood Green Corp. Announces Filing of 10-K, First Revenues and Unit Operating Profit
DENVER, April 3, 2020 (Newswire.com) - Redwood Green Corp. (“Redwood Green” or the “Company”) (OTC: RDGC) announced today the timely filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. In the 10-K, the Company reports its first revenues on an annual basis and operating unit profit.
Redwood Green reported revenues of $3,473,866 for the fiscal year, stemming mainly from the July 15, 2019, acquisition of brands and other assets from Critical Mass Industries LLC, dba Good Meds (“Good Meds”). The reported audited revenues cover the period from July 15 to December 31. On a full-year basis, revenues (unaudited) from the Good Meds unit were $6,798,227 for the fiscal year ended December 31, 2019.
On a consolidated basis, the Company reported a net loss for the fiscal year ended December 31, 2019, of $3,062,347 or $0.03 per share. This included substantial legal, audit and other professional fees relating to both successful and unsuccessful efforts to acquire companies or assets to build shareholder value through acquisitions. The successful acquisition of Good Meds assets resulted in audited net income of $303,638 on revenues of $3,460,566 for the partial year commencing July 15 and ending December 31, 2019.
On December 31, 2019, the Company had cash balances totaling $3,468,957 and used cash in operations totaling $1,801,131 for the fiscal year. Redwood Green funded activities from private placements of shares to approximately 234 subscribers for net proceeds of $7,104,732.
Redwood Green CEO Michael Saxon stated, “Our results show that we have an excellent starting point in building the Company. Less than a year ago, Redwood Green was essentially a start-up operation. From here, we look forward to executing on our strategies and building shareholder value throughout 2020 and beyond. I am excited to have come on board in February of this year to lead this effort. We will be communicating more about our refined strategy in the very near future. Special thanks to our management team, all employees and external professionals who brought us this far to date.”
“I am extremely pleased with the excellent work completed under the direction of our management team in this building year. We have come a long way since May 2019, from start-up to capital raise to acquisitions to assembling a stellar board of directors,” stated Board Chair Dr. Delon Human. “I share Michael’s excitement for the future and look forward to further communications.”
About Redwood Green Corp.
Redwood Green delivers high-quality, safe, sustainable, innovative and accessible marijuana- and hemp-derived products that support individual well-being. Safety and high quality is a critical commitment from Redwood Green, both for our own brands as well as the partners with whom we do business. The drive behind what we do is rooted in improving well-being and quality of life for a wide range of audiences, ensuring we grow and improve upon what is currently available for consumers in the cannabinoids market. The company is publicly traded, listed on OTC Markets under the trading symbol RDGC.
This press release is not an offer of securities, or a solicitation for purchase, subscription or sale of securities in the United States of America or in any other jurisdiction in which it would be unlawful to do so.
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This press release message may contain forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or "recurring" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as changes in the regulatory environment affecting the sale and use of cannabis products, demand for the Company's products, internal funding and the financial condition of the Company, product roll-out, competition, our dependence upon our commercial partners, and other commercial matters involving the Company, its products and the markets in which the Company operates, as well as general economic conditions and those other risk factors identified in the Company’s SEC filings, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release message. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in subsequent reports should be consulted.
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the U.S. to, among other things, cultivate, distribute or possess cannabis in the U.S. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the U.S. may form the basis for prosecution under applicable U.S. federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the U.S. has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve Redwood Green of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against Redwood Green. Enforcement of federal laws in the U.S. remains a significant risk to the business of Redwood Green and any proceedings brought against Redwood Green thereunder may adversely affect the Company’s operations and financial performance.
Source: Redwood Green Corp.